Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 1 Jul, 24 | 0K3B | Buy | USD 27.96 | USD 30.48 | USD 32.71 | 16 days | 17.0% |
Data Powered by EOD Historical Data (“EODHD”).
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant. In addition, it provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, farmers, cooperatives, independent retailers, and national accounts. The Mosaic Company was incorporated in 2004 and is headquartered in Tampa, Florida.
Enhanced Liquidity: Current Ratio of 1.16x in Q1FY24 vs 1.13x in Q1FY23
Lower Debt/Equity Ratio: 0.38x in Q1FY24 vs. Industry Median of 0.75x
Lower Current Ratio: 1.16x in Q1FY24 vs. Industry Median of 1.98x
Lower Gross Margins: 14.90% in Q1FY24 vs. Industry Median of 35.30%
Lower Selling prices, Foreign currency transactions loss, Commodity prices volatility, Adjustment to environmental reserves etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 27.96 | 24.33 | 30.48 | 32.71 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial: Net revenue was down by 26% YoY in Q1FY24 primarily due to lower selling prices. This led to lower gross margins of 14.90% in Q1FY24 as compared to 18.60% in Q1FY23.
Technicals: The stock has witnessed a downside of ~ 21.7463 % in 6 months. The stock has a 52-week high and 52-week low of USD 42.81 and USD 26.67, respectively.
Outlook: MOS expects their conversion and turnaround cost to remain high during Q2FY24 to support increasing production volumes.
Given aforementioned factors, a 'Buy' recommendation has been assigned on the stock at the closing market price of USD 27.96 as on July 1, 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industry:
| Company | Change (GBP) | Price (GBP) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) |
|---|---|---|---|---|---|---|
| 0K3B Mosaic Co. |
0.46 1.92% | 24.36 | 0.05 | - | 0.0094 | - |
| 0RIH Alphabet Inc Class A |
- -% | 190.80 | - | - | - | - |
| 0M2Z Equinor ASA |
-0.2121 0.08% | 255.49 | - | - | - | - |
| 0VSO BYD Co. Ltd. |
-2.515 7.06% | 33.09 | - | - | - | - |
| 0QZI Facebook Inc. Cl A |
- -% | 599.00 | - | - | - | - |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 01, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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