Bunge Stock Analysis, Valuation (NYSE:BG)

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$69.94 $0.16 (0.23%) BG stock closing price May 25, 2018 (Closing)
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Bunge
Updated on : May 25, 2018
previous close
BG 69.9 (0%)
S&P 500 2721.3 (0%)
Closing Price On: May 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agriculture Products
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.7%
Operating Profit
Operating Margin:
0.6%
Sector Average:
8.5%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
7.07B
Debt/Equity Ratio:
 0.97
Compared to the industry
Cash Flow
Operating cash flow:
-$1.54B
Net Income:
-$21M
Dividend Yield
BG dividend yield:
2.57%
PROS      CONS
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BG PS :
0.2
Industry PS :
1.4
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.3%
Return on Equity:
1.2%
Free Cash Flow Margin:
-15.5%
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Bunge Stock Analysis

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Take a look at Amigobulls Bunge stock analysis video. Our BG analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Bunge Ltd Stock Rating 1.5/5

Amigobulls BG stock analysis takes into account various financial ratios like relative valuation, Bunge revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Bunge dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Bunge valuation analysis. Bunge stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy BG stock?

  • BG stock is trading at a favorable price to sales multiple of 0.2 as against the Agriculture Products industry average multiple of 1.4.

Should you sell BG stock?

  • Sales declined by -6.7% annually over the last 5 years.
  • Bunge's TTM operating margin of 0.6% was rather poor.
  • Bunge posted a TTM Net margin of 0.2%.
  • Bunge is debt laden and has a high debt/equity ratio of  0.97.
  • BG stock is trading at a PE ratio of 45.7, which is worse than the industry average multiple of 18.7.
  • Bunge has a low ROIC (Return on Invested Capital) of 1.3%.
  • The TTM ROE (Return On Equity) for Bunge is not so attractive at 1.2%.
  • The company has a negative free cash flow margin of -15.5%.

Comments on this video and Bunge stock

Investors can use Amigobulls Bunge stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Bunge revenue growth and profit or net income are two main metrics which help in identifying whether BG stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.