Urea Prices: The Continuing Decline Last Week
Granular urea prices in the Middle East declined 5% to $200 per metric ton in the week ended July 1. It was $210 per metric ton in the previous week.
Was Morgan Stanley’s Call on Mosaic Already Priced In?
Phosphates and potash have been significantly lower year-over-year. It appears that investors already priced in the limited upside for Mosaic well before the downgrade.
W.R. Grace Signs a Spree of New Contracts
On November 27 and 28, 2017, W.R. Grace (GRA) signed a spree of new contracts for its Unipol license.
Non-farm payrolls, average hourly earnings rise
US non-farm payrolls rose by 295,000 in February 2015 from a downwardly revised January number of 239,000 compared to 257,000 reported earlier.
Why Did LyondellBasell’s 3Q16 Earnings Miss Estimates?
LyondellBasell (LYB) reported adjusted EPS (earnings per share) of $2.31 in 3Q16 compared to $2.80 in 3Q15, implying a fall of 17.5%.
Axalta’s 4Q16 Adjusted EPS Manages to Meet Expectations
Axalta Coating Systems (AXTA) reported adjusted EPS (earnings per share) of $0.29 for 4Q16 and managed to meet analysts’ expectation of $0.29.
Dow Chemical and Sadara Announce Start-Up of Mixed Feed Cracker
On August 29, 2016, Sadara Chemical (SADARA), a joint venture of Dow Chemical (DOW), and Saudi Aramco announced the start-up of its mixed feed cracker.
PotashCorp’s Price Target before It Reports Its 2Q16 Earnings
Since the beginning of 2016, analysts have revised their next-12-month price target for PotashCorp downward. The consensus price target now stands at $15.70.
Will PPG Industries’ Glass Segment Cease to Exist in 3Q16?
In 2Q16, PPG Industries’ Glass segment contributed ~7% of total revenue, reporting revenue of $282 million in 2Q16, as compared to $279 million in 2Q15.
Analysts’ Price Target and Recommendations for FMC Corporation
Like Monsanto (MON), FMC Corporation (FMC) is in the business of crop protection products. The majority of FMC’s sales come from its Agricultural Solutions segment.
Analysts’ Recommendations and Price Targets for Monsanto
Analysts’ consensus price target for Monsanto is $122.70 per share over the next 12 months.
Monsanto-Bayer Merger: Analyzing the Opposition
The merger between Monsanto (MON) and Bayer is worth $66 billion. It’s one of the largest deals in the agribusiness (MOO) industry.
Analysts’ Ratings, Price Target for CF Industries before 1Q16 Earnings
Out of 16 analysts surveyed by Bloomberg, about 50% have “buy” ratings for CF Industries (CF). About 44% have “hold” recommendations, and one has a “sell” rating for the company.
Monsanto Pleased with Shareholders’ Approval of Bayer Merger
Often, it’s the company that innovates the fastest that dominates the market. Monsanto’s merger with Bayer could help both companies do just that.
LyondellBasell Announces New Share Repurchase Program
On May 24, 2017, LyondellBasell’s (LYB) board authorized a new share repurchase program. It can repurchase up to 10% of its outstanding shares over the next 18 months.
Monsanto’s 12-Month Ratings and Price Targets: Must-Knows
As of June 24, 2016, Monsanto (MON) was trading at ~$108.9 per share. Let’s look at Wall Street analyst ratings and target prices for the company’s share price over the next 12 months.
Monsanto: Earnings Estimates and Target Price
As of December 25, 2017, Monsanto stock was covered by 18 analysts according to Reuters. The current consensus rating on the stock stood at 2.56.
How Does the Next 12-Month Price Target for Agrium Look?
Out of 25 analysts surveyed, about 48% of the analysts have “buy” recommendations for Agrium. About 48% of analysts have issued “hold” recommendations and only 4% have issued “sell” recommendations.
12-Month Analyst Recommendations and Price Targets for Monsanto
Of the 19 analysts surveyed by Reuters, 11 of them have given Monsanto “strong buy” to “buy” recommendations. Seven have given it “hold” recommendations.
Analysts Mull Israel Chemicals’s Performance over the Next 12 Months
Out of the 14 Wall Street analysts covering Israel Chemicals (ICL), only one has a “buy” recommendation on the company, 12 have a “hold” recommendation, and only one analyst has a “sell” recommendation.
Air Products and Chemicals’ New Plant in China Begins Operations
On December 5, 2017, Air Products and Chemicals (APD) announced the beginning of operations of its new plant in the Pukou Economic Development Zone (PKEDZ) in Nanjing in Eastern China.
Larry Robbins’ Glenview Capital opens a new position in PHH
Glenview Capital Management added a 0.49% new position in PHH Corporation.
Monsanto Is Dropped from TPG-Axon’s Portfolio
Monsanto’s net sales for fiscal 2Q15 fell 11% on a year-over-year basis to $5.19 billion.
Valuation Multiples for Agricultural Chemicals after Brexit
In this part of the series, we’ll look at agricultural fertilizer producers’ valuations from their historical standpoints. Over the long run, valuation multiples impact a company’s share price.
Who Are the Biggest Players in the Fertilizer Industry?
There’s a handful of big players in the agricultural fertilizer industry. Setting up business requires huge capital, which makes for a high barrier to entry.
Analysts’ Recommendations and Price Target for SQM
Sociedad Química y Minera de Chile (SQM) has yet to announce its earnings, unlike most of the companies we’ve discussed so far in this series.
What Hurdles Could Monsanto-Bayer Deal Face?
A few days ago, Monsanto (MON) agreed to Bayer’s takeover offer of $128 per share for a total deal value of $66 billion.
Corn, Soybean, and Wheat Prices Fall in August, but Why?
On August 13, the crop index stood at 89.9. It rose by 1% following the USDA’s latest stock-to-use ratio, which was published on August 12.
Filtering Down to Top 4 Agriculture Dividend Stocks in December
In this concluding part of the series, we’ll filter down to the top four dividend stocks in this industry (XLB).
Why investing in seed is different than investing in fertilizer (Part 1)
Investing in fertilizers and seed stocks Fertilizer and seed stocks are both part of the agriculture industry. As they highly correlate with each other, investors tend to think investing in one is like investing in the other. From September 2005 to mid-2012, the correlation between the two industries, using major companies’ share prices, was 0.86.[1. […]
Overview: TPG-Axon Capital Management’s 2Q14 positions
TPG-Axon Capital Management LP is a privately owned $4 billion hedge fund firm. It was founded by Dinakar Singh in February 2005.
Why investing in seed is different than investing in fertilizer (Part 2)
Continued from Part 1 Monsanto and DuPont Two industry giants dominate the seed industry, Monsanto Co. (MON) and DuPont (DD), which together held ~62% of the industry’s revenue in 2012. Why are these two companies dominant players in the industry? Let’s explore. Patent protection One big differentiator between seed and fertilizer stocks is patentability. Companies […]
Why DOW’s Performance Plastics Segment Revenue Rose in 2Q17
Dow Chemical’s (COW) Performance Plastics segment is the company’s largest revenue generator.
An Update on the Monsanto-Bayer Proposed Merger
Bayer recently filed for an extension with European Union regulators, which pushed back the merger with Monsanto to early 2018.
Why Monsanto Could Report Weak Revenue Growth in 1Q16
As of January 4, Wall Street analysts are expecting Monsanto to report revenue of $2.4 billion for the upcoming 1Q16. This would mean a growth of 2.1%.
Air Products and Chemicals Has Something New for Glass Manufacturers
On July 12, 2017, Air Products and Chemicals (APD) launched a new oxy-fuel burner. The product is primarily targeted at glass manufacturers.
How Has Dow Chemical Stock Performed after 2Q16 Earnings?
Dow Chemical (DOW) is set to report its 3Q16 earnings in a conference call with securities analysts on Thursday, October 27, 2016, before the markets open.
Why Bridgewater increased its position in Juniper Networks
Bridgewater Associates increased its position in Juniper Networks from 0.07% in the 1Q portfolio to 0.21% in the fund’s 2Q portfolio.
How Did Natural Gas Prices Move Last Week?
In recent weeks, US natural gas prices have started trending higher, and they continued to do so last week. Prices significantly impact nitrogen fertilizer producers.
Praxair Approaches Linde AG for Merger Talks—Again
On August 16, 2016, both companies were engaged in preliminary merger talks, but on September 12, merger plans were dropped due to strategic considerations.
September’s Fall in Import and Export Prices: What Does It Mean?
With the continuous decline in export prices, it is evident that the rising dollar is hampering the US competitiveness in the foreign market.
TPG-Axon raises position with Monsanto
Monsanto received USDA recommendations for deregulation for both Roundup Ready Xtend soybeans and Bollgard II XtendFlex cotton.
A Quick Look at DuPont’s Valuation ahead of Its 4Q16 Earnings
On January 18, 2017, DuPont was trading at a one-year forward PE of 19.80x compared to its peers Dow Chemical (DOW) and LyondellBasell (LYB).
Why Monsanto’s Profitability Improved in 2Q17
Monsanto’s EBIT margin rose from 31% in fiscal 2Q16 to 37% in fiscal 2Q17, with both major segments experiencing an expansion.
Why Analysts Expect Dow Chemicals’s Operating EPS to Fall in 4Q16
At the end of 3Q16, DOW had purchased 7.8 million shares amounting to $416 million under its $9.5 billion share repurchase program.
Why Bridgewater starts new position in Bed, Bath and Beyond
Bridgewater Associates disclosed a new position in Bed, Bath & Beyond (BBBY). It accounted for 0.11% of the fund’s total portfolio.
Why Bridgewater Associates decreased its position in Cisco
Bridgewater Associates decreased its position in Cisco from 0.20% in the 1Q portfolio to 0.09% in the fund’s 2Q portfolio.
Investment-grade bonds: Monsanto and energy firms make a splash
Corporates accounted for about 44% of the total investment-grade debt (LQD) issuance for the week ended June 27. Financial sector (VFH) issuers accounted for ~38%.
DowDuPont Has Fallen 10% in 2018: Can It Bounce Back?
So far in 2018, DowDuPont has been underperforming its peers and the broader market. As of May 29, DowDuPont has declined 10.2% YTD.
Dow Opened a New Sales Center in Toronto
On May 23, Dow Chemical expanded its presence in Canada with a new regional sales center in Toronto. The new center was inaugurated on May 24.
IFF Partners with Amkiri, Boosts Innovation Platform
On May 24, International Flavors and Fragrances announced that it would partner with Amkiri—an Israeli-based startup that was founded in 2014.
Deere: Strong Adjusted Earnings Are Expected in Q2
Deere (DE) is expected to post an adjusted EPS (earnings per share) of $3.31 for the second fiscal quarter—an increase of 32.9% on a YoY basis.
DWDP’s Material Science Segment: Higher Revenue Growth in 1Q18
DowDuPont’s (DWDP) Material Science segment, which is expected to be spun off into a new company by the end of 1Q19, accounted for 55.9% of its total revenues.
DowDuPont’s 1Q18 Earnings Beats Expectations
On May 3, DowDuPont (DWDP) announced its 1Q18 adjusted earnings per share of $1.12. DWDP beat Wall Street’s estimate of $1.10.
Can IFF Meet Adjusted Earnings Expectations?
International Flavors and Fragrances (IFF) is expected to report adjusted earnings per share (or EPS) of $1.59 in 1Q18, an increase of 4.6% over its adjusted earnings per share of $1.52 in 1Q17.
DowDuPont’s 1Q18 Earnings and Revenue Beat Expectations
DowDuPont (DWDP) reported revenues of ~$21.5 billion for 1Q18 today, reflecting growth of 5.1% over the pro forma revenues of 1Q17 from continuing operations.
W. R. Grace Bags New UNIPOL Technology Client
On April 24, W. R. Grace (GRA) announced that it would be licensing its UNIPOL PP Process Technology to Inter Pipeline to be used in its Heartland Petrochemical complex in Alberta, Canada
How APD’s Industrial Gases–Asia Segment Performed in Fiscal 2Q18
Air Products and Chemicals’ (APD) Industrial Gases–Asia segment accounted for 25.9% of APD’s total revenue in fiscal 2Q18, narrowing by 3.2 percentage points YoY (year-over-year) from 22.7%.
Air Products and Chemicals Sees Growth across the Board in 2Q18
Air Products and Chemicals’ (APD) revenue rose 9.0% YoY (year-over-year) to $2.16 billion in fiscal 2Q18, missing analysts’ estimate of $2.2 billion.
Air Products and Chemical Beats Estimates in 2Q18, Stock Rises
Air Products and Chemicals (APD) announced its fiscal 2Q18 earnings on April 26.
Praxair Stock Is Smoking on 1Q18 Earnings and Revenue Beat
Praxair (PX), the top industrial gas company, reported revenues of ~$3.0 billion for 1Q18 today.
W.R. Grace Stock Spirals on 1Q18 Earnings and Revenue Beat
W.R. Grace reported revenues of $431.5 million for 1Q18 today, reflecting growth of 8.4% from 1Q17.
Why Sherwin-Williams’s 1Q18 Revenue Could Be Set to Rise
Sherwin-Williams is expected to report revenue of $4.0 billion in 1Q18, a 43.1% increase from 1Q17’s $2.8 billion.
Why Monsanto Stock Popped Yesterday
Monsanto (MON) stock surged on April 9, 2018, following news that the U.S. Department of Justice approved the merger with Bayer.
Why RPM’s Industrial Segment Grew in Fiscal 3Q18
RPM International’s (RPM) Industrial segment has been the largest contributor to RPM’s overall revenue, comprising 51.6% of revenue in fiscal 3Q18 and 51.0% in fiscal 3Q17.
How Deere’s Valuation Compares
In this part, we’ll compare Deere’s (DE) valuation with peers’.
Bayer-Monsanto Deal Receives European Union Approval
On March 21, the pending merger between Monsanto (MON) and Bayer inched a step closer to closure.
Monsanto: Analysts’ Ratings and Target Price
The consensus mean target price on Monsanto for the next 12-month period stood at $125.8. Bayer’s acquisition price is $128.
March Update for Mosiac’s Target Price and Ratings
The current consensus mean rating on Mosaic stands at 2.6 with an overall “hold” recommendation on the stock.
Albemarle’s Refining Solutions Segment: Revenue Growth in 4Q17
Albemarle’s (ALB) Refining Solutions segment accounted for 27.8% of its total revenues in 4Q17 compared to 27.7% in 4Q16.
Deere’s Construction & Forestry Revenue Rises but Margins Dip
In fiscal 1Q18, Deere & Company’s (DE) Construction & Forestry segment reported revenue of $1.7 billion.
DE’s Agriculture & Turf Revenue Reverses the Trend in Fiscal 1Q18
Deere & Company’s (DE) Agriculture & Turf segment is its largest revenue generator. It reported revenue of $4.2 billion in fiscal 1Q18.
Deere’s Fiscal 1Q18 Revenue Rises but Falls Short of Estimates
In fiscal 1Q18, Deere & Company (DE) reported total revenue of $6.9 billion inclusive of financial services and other revenue.
LyondellBasell Moves to Acquire A. Schulman
On February 15, 2018, LyondellBasell (LYB) announced that it has entered into a definitive agreement to acquire A. Schulman (SHLM).
Deere’s Fiscal 1Q18 Revenues Set for a Big Jump
Deere (DE) is expected to report revenues of $6.4 billion in fiscal 1Q18 from its equipment operations.
How Did DowDuPont’s Agriculture Segment Perform in 4Q17?
DowDuPont’s (DWDP) Agriculture segment accounted for 13.9% of DWDP’s 4Q17 revenue as compared to 15.0% in 4Q16 on a proforma basis.
What’s behind DowDuPont’s Significant Revenue Growth in 4Q17?
DowDuPont (DWDP) reported 4Q17 revenues of $20.1 billion, an increase of 13.1% over the proforma revenue of $17.7 billion in 4Q16.
DowDuPont’s Short Interest before Its 4Q17 Earnings
DowDuPont’s (DWDP) short interest has risen negligibly since its 3Q17 earnings were announced on November 2, 2017.
Analysts’ Views on DowDuPont before Its 4Q17 Earnings
Among the analysts tracking DowDuPont, 84% have recommended a “buy,” 12% have recommended a “hold,” and 4% have recommended a “sell.”
What Could Drive DowDuPont’s Adjusted Earnings in 4Q17?
DowDuPont (DWDP) is expected to post an adjusted EPS (earnings per share) of $0.66 in 4Q17. DowDuPont posted an adjusted EPS of $0.55 in 3Q17.
Analysts’ Views Are Mixed following PPG’s 4Q17 Results
Following PPG Industries’ (PPG) 4Q17 earnings, analysts’ consensus has changed compared to their consensus prior to its 4Q17 earnings.
PPG’s Industrial Coatings Segment’s Margins Continue to Contract
PPG Industries’ (PPG) Industrial Coatings segment is its second reporting segment. The segment represented 42.3% of the company’s total revenue in 4Q17 compared to 42.0% in 4Q16.
Praxair’s Valuation Compared to Its Peer before 4Q17 Earnings
Praxair’s (PX) one-year forward PE multiple currently stands at 25.8x. Its peer Air Products & Chemicals (APD) has a one-year forward PE multiple of 23.6x.
Praxair’s 4Q17 Revenue Expectations: The Driving Factors
As of January 15, 2018, analysts are expecting Praxair (PX) to post revenue of $2.8 billion for 4Q17, a 6.8% rise on a year-over-year basis.
Scotts Miracle-Gro: Ratings and Price Target for January
Nine Wall Street analysts are covering Scotts Miracle-Gro, They have a consensus mean rating of 2.3 on the stock with an overall “buy” recommendation as of January 10, 2018.
Analysts’ Views on FMC in January 2018
Twenty-two Wall Street analysts are covering FMC. They have a consensus mean rating of 2.3 on the stock with an overall “buy” recommendation as of January 10, 2018.
How Analysts View CF Industries in January 2018
Nineteen Wall Street analysts are covering CF Industries. They have a consensus mean rating of 2.7 on the stock with an overall “hold” recommendation as of January 10, 2018.
What to Expect from PPG Industries’ Revenue Growth in 4Q17
As of January 11, 2018, analysts expect PPG Industries (PPG) to post revenues of $3.66 billion in 4Q17—an increase of 3.10% on a year-over-year basis.
RPM International’s Latest Dividend: All the Key Dates
RPM International is set to pay its first dividend for 2018. It’s expected to pay the first quarter dividend on January 31, 2018.
What Investors Are Paying for Agribusiness Stocks: Part 2
The remaining companies In this part, we’ll compare the five remaining agribusiness companies’ valuation, again using forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) multiples. Valuation multiples As shown in the above chart, the remaining companies’ valuation multiples have risen in the last two years. At 18.3x, FMC (FMC) was trading at a premium to the peer […]
Sales Expectations for Agribusiness Companies in 2018
Sales expectations So far in this series, we’ve reviewed agribusiness companies’ 2017 performance and 2018 expectations. In this part, we’ll review analysts’ sales growth estimates for 2018. Growth estimates As shown in the above chart, agribusiness companies, excluding Israel Chemicals (ICL) and CVR Partners (UAN), are expected to see lower sales growth year-over-year in fiscal […]
A Review of Key Agribusiness Companies’ 2017 Sales
Performance comparison In our series Comparative Analysis of Fertilizer Companies’ 3Q17 Earnings, we compared fertilizer companies’ 3Q17 performance. However, as the agriculture business is seasonal, we should also look at annual trends for a complete picture. Year-over-year sales In the above chart, we compare agribusiness companies’ sales over the last 12 months and the year prior. All […]
Analysts’ Estimates for Monsanto’s Margin Expansion
For 1Q18, Wall Street analysts estimate a gross income of $1.3 billion. On net sales of $2.8 billion, it will translate into a gross margin of 48%.
Digging Deeper into Agriculture Stocks’ Dividend Yields: Part 2
In this part of the series, we’ll look at the dividend yield trends for PotashCorp (POT), Monsanto (MON), Mosaic (MOS), and FMC (FMC).
The Agriculture Industry: Our Top 4 Dividend Stocks
Among the companies that operate within the agriculture sector, FMC (FMC) has outperformed its peers with a total one-year return of 53.2% as of December 11, 2017.
The Bayer-Monsanto Merger Concerns
Some anti-trust agencies have pushed back their merger approval deadlines over anti-competitive concerns the deal will likely create.
The Bayer-Monsanto Merger Deal: An Update
On September 14, 2016, Bayer signed an agreement with Monsanto (MON) to acquire it for $66 billion, or $128 per share. The offer represented a 44% premium over Monsanto’s stock price.
Deere Reports Strong Fiscal 4Q17 Earnings
Deere’s stock skyrocketed during the week ended November 24, 2017.
Deere’s Fiscal 4Q17 Revenue Rises Thanks to Higher Volumes
Deere’s fiscal 4Q17 revenue In fiscal 4Q17, Deere (DE) saw total revenue of $8.0 billion, inclusive of financial services and other revenue, implying a 23.0% rise from 4Q16, when it had revenue of $6.5 billion. Excluding financial services and other revenue, DE’s net sales for 4Q17 were $7.1 billion, compared with $5.7 billion in fiscal 4Q16, a 25.5% rise year-over-year. […]
What Analysts Recommend for DowDuPont
The consensus target price for DWDP is $80.20 for the next 12 months, implying a return potential of 13.2% over the closing price of $70.85 on November 20, 2017.