Monsanto Stock Analysis (NYSE:MON)
Monsanto Analysis Video
View Monsanto stock analysis video. This is our MON analyst opinion covering the buy and sell arguments for MON stock.
Monsanto Company Stock Rating (3.4/5)
Our Monsanto stock opinion is based on fundamentals of the company. This Monsanto stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy MON stock?
- Monsanto sales grew by 19.4% year on year in 2017 Q1.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 2.4%.
- Monsanto had a healthy average operating margin of 20.8% over the last 4 quarters.
- Net margins stood at a healthy 11.6% (average) for Monsanto in the Trailing Twelve Months.
- The company has an operating cash flow which is 50.4 times the net income. We see this as a positive signal.
- Monsanto has an attractive ROIC (Return on Invested Capital) of 14.3%
- The LTM ROE of 37.1% for Monsanto is attractive.
- Monsanto has a healthy FCF (Free Cash Flow) margin of 43.2%.
Should you sell MON stock?
- With a debt/equity ratio of 1.95, Monsanto is highly leveraged in comparison to Basic Materials peers.
- The company is trading at a price to sales multiple of 3.6, which is higher in comparison to the Agriculture Products industry average of 1.3, making MON stock expensive.