Price movement of Bunge
Bunge (BG) has a market capitalization of $7.7 billion. BG rose by 0.56% to close at $50.0 per share as of March 1, 2016. The stock’s price movements on a weekly, monthly, and year-to-date (or YTD) basis are 0.60%, -18.7%, and -26.2%, respectively.
Currently, BG is trading 6.6% below its 20-day moving average, 16.2% below its 50-day moving average, and 31.2% below its 200-day moving average.
The Vanguard Mid-Cap ETF (VO) invests 0.33% of its holdings in Bunge. The ETF tracks the CRSP US Mid Cap Index, a diversified index of mid-cap US companies. The YTD price movement of VO was -6.3% as of February 29, 2016.
The Vanguard Value ETF (VTV) invests 0.11% of its holdings in Bunge. The ETF tracks the CRSP US Large Cap Value Index. The index selects stocks from the top 85% of market capitalization based on multiple value factors.
The market capitalizations of Bunge’s competitors are as follows:
Bunge declares dividends
Bunge has declared a regular cash dividend of $0.38 per share on its common stock. The dividend will be paid on June 2, 2016, to shareholders on record at the close of business on May 19, 2016.
The company also declared a quarterly cash dividend of $1.22 per share on its 4.9% cumulative convertible perpetual preference shares. The preference dividend will be paid on June 1, 2016, to shareholders on record at the close of business on May 15, 2016.
Performance of Bunge in 4Q15 and 2015
Bunge reported 4Q15 net sales of $11,133.0 million, a fall of 15.9% compared to net sales of $13,231.0 million in 4Q14. Sales of its agribusiness products, edible oil products, milling products, sugar and bioenergy products, and fertilizer products fell by 15.2%, 10.6%, 17.6%, 27.0%, and 16.5%, respectively, in 4Q15 compared to 4Q14.
Its net income and EPS (earnings per share) rose to $188.0 million and $1.30, respectively, in 4Q15, compared to -$62.0 million and -$0.43, respectively, in 4Q14.
In 2015, BG reported net sales of $43,483.0 million, a fall of 23.9% YoY (year-over-year). Its net income and EPS rose to $738.0 million and $5.07, respectively, in 2015, compared to $467.0 million and $3.17, respectively, in 2014.
Meanwhile, its cash and cash equivalents rose by 13.5%, and its inventories fell by 20.1% in 2015. Its current ratio fell to 1.48x, and its debt-to-equity ratio rose to 1.7x in 2015, compared to its current and debt-to-equity ratios of 1.5x and 1.5x, respectively, in 2014.
Bunge’s price-to-earnings and price-to-book value ratios are 10.8x and 1.1x, respectively, as of March 1, 2016.
Bunge has made the following projections for 2016:
- In agribusiness, it expects results in oilseeds and grains to be largely driven by its South American operations.
- In fertilizer, farmer economic conditions have improved in Argentina, and Bunge expects the removal of export taxes on grains to result in a rise in sales.
- In sugar and bioenergy, it expects earnings and cash flow growth from hedge sugar and Brazilian ethanol.
- It expects depreciation, depletion, and amortization of ~$550 million.
- It expects capital expenditures of ~$850 million, which include $150 million worth of investments carried over from 2015.
- It expects the tax rate to be in the range of 25%–29%.
In the next part, we’ll look at Kraft Heinz Company.