Monsanto Stock Analysis (NYSE:MON)

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$113.16 $0.21 (0.19%) MON stock closing price Mar 23, 2017 (Closing)
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Monsanto
Updated on : Mar 23, 2017
previous close
MON 113.2 (0%)
S&P 500 2346 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agriculture Products
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.4%
Operating Profit
Operating Margin:
20.8%
Sector Average:
4.6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.62B
Debt/Equity Ratio:
 1.95
Compared to the industry
Cash Flow
Operating cash flow:
$1.46B
Net Income:
$29M
Dividend Yield
MON dividend yield:
1.91%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MON PS :
3.6
Industry PS :
1.3
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.3%
Return on Equity:
37.1%
Free Cash Flow Margin:
43.2%
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Monsanto Analysis Video

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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.

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