Monsanto Stock Analysis, Valuation (NYSE:MON)

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$126.5 $1.12 (0.89%) MON stock closing price May 25, 2018 (Closing)
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Monsanto
Updated on : May 25, 2018
previous close
MON 126.5 (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-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-0.2%
Operating Profit
Operating Margin:
22.2%
Sector Average:
8.5%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
7.85B
Debt/Equity Ratio:
 1.01
Compared to the industry
Cash Flow
Operating cash flow:
$338M
Net Income:
$1.46B
Dividend Yield
MON dividend yield:
1.71%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
Long Term Growth
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MON PS :
3.8
Industry PS :
1.4
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.5%
Return on Equity:
37.8%
Free Cash Flow Margin:
1.9%
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Monsanto Stock Analysis

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Take a look at Amigobulls Monsanto stock analysis video. This is our analyst opinion covering the buy and sell arguments for MON stock.

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.

Monsanto Company Stock Rating 3.1/5

Amigobulls MON stock analysis uses latest quarter 2018 Q2 financial data like Monsanto revenue growth, profit margins and cash flows. We compare Monsanto valuation with its sector peers to gauge relative attractiveness of MON stock. Based on a company's historical fundamentals we arrive at Monsanto stock rating which is indicative of the company's financial performance.

Should you buy MON stock?

  • The TTM operating margin was good at 22.2% for Monsanto.
  • LTM Net margins were good at 17.1% for Monsanto.
  • Monsanto's return on invested capital of 19.5% is good.
  • The LTM ROE of 37.8% for Monsanto is attractive.

Should you sell MON stock?

  • Revenue declined at a CAGR of -0.2% over the last 5 years.
  • Monsanto is debt laden and has a high debt/equity ratio of  1.01.
  • Cash flow from operations is low at 0.2 times the net income.
  • The company is trading at a price to sales multiple of 3.8, which is higher in comparison to the Agriculture Products industry average of 1.4, making MON stock expensive.

Comments on this video and Monsanto stock

Amigobulls Monsanto stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Monsanto revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Monsanto stock.