Monsanto Stock Analysis (NYSE:MON)

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$116.74 $0.2 (0.17%) MON stock closing price Apr 26, 2017 (Closing)
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Monsanto
Updated on : Apr 26, 2017
previous close
MON 116.7 (0%)
S&P 500 2387.5 (0%)
Closing Price On: Apr 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Agriculture Products
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2.1%
Operating Profit
Operating Margin:
21.4%
Sector Average:
7.9%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.17B
Debt/Equity Ratio:
 1.65
Compared to the industry
Cash Flow
Operating cash flow:
$74M
Net Income:
$1.37B
Dividend Yield
MON dividend yield:
1.85%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
High Debt Burden
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MON PS :
3.5
Industry PS :
1.3
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15%
Return on Equity:
40.4%
Free Cash Flow Margin:
-3%
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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 (3.5/5)

Our Monsanto stock opinion is based on fundamentals of the company. This Monsanto stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy MON stock?

  • Monsanto's revenue growth came in at 12% in 2017 Q2.
  • The company saw a significant growth in revenue with a 5 year CAGR of 2.1%.
  • Monsanto's average operating margin of 21.4% was exceptional.
  • LTM Net margins were good at 13.3% for Monsanto.
  • Monsanto generates a high return on invested capital of 15%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Monsanto at 40.4%.

Should you sell MON stock?

  • Monsanto is debt laden and has a high debt/equity ratio of  1.65.
  • Cash flow from operations is low at 0.1 times the net income.
  • The company is trading at a price to sales multiple of 3.5, which is higher in comparison to the Agriculture Products industry average of 1.3, making MON stock expensive.
  • The company has a negative free cash flow margin of -3%.

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