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.
Bayer-Monsanto Deal Now Awaits Approval from US and Russia
The Bayer-Monsanto (MON) deal is still under review for antitrust issues in the US due to concerns that the two companies combined could harm the competitive environment.
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’s 1Q18 Profitability and Outlook
Monsanto’s adjusted EBITDA margins expanded YoY from 8% to 12.8% YoY. The company’s net margins rose from 3.4% to 6.9% during the same period.
Analyzing Monsanto’s 1Q18 Gross Margin Performance
During 1Q18, Monsanto’s overall gross margins expanded to 49.4%. The Seed & Genomics segment contributed the most towards the margins.
Russia Pushes Back Deadline on Bayer-Monsanto Merger
Last month, Russia pushed back its deadline by three months to approve the Bayer-Monsanto (MON) proposed merger.
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.
Understanding the Tax Rate of Agricultural Chemical Companies outside the US
Not everyone believes that Trump’s plan to cut the corporate tax rate from 35% to 20% would have a desirable effect.
Monsanto’s 4Q17 Gross Margins by Segment
The Seed and Genomics segment’s gross margins expanded from 34.0% in 4Q16 to 41.4% in 4Q17.
Monsanto Reports 4Q17 Earnings: Stock Unchanged
On October 4, 2017, Monsanto (MON) reported its fiscal 4Q17 and fiscal 2017 earnings. It delivered EPS of $0.05, which was better than a loss of $0.44 in 4Q16.
Monsanto’s Earnings per Share Expectations for 4Q17
Earnings per share So far in this series, we’ve looked at analysts’ mean estimates for Monsanto’s (MON) sales, gross, and EBITDA (earnings before interest, tax, depreciation, and amortization) margins. In this part, we’ll look at EPS (earnings per share) expectations, a critical aspect to consider when assessing a company’s performance. Analysts’ estimates In 4Q17, analysts […]
What Analysts Expect for Monsanto’s Earnings Margins
Expectations for 4Q17 Earlier in this series, we saw that analysts expect Monsanto’s (MON) gross income to grow slower than its sales over the next four quarters. In this part, we’ll look at what analysts expect for the company’s operating cost structure in 4Q17. Monsanto’s earnings In 4Q17, analysts expect Monsanto’s EBITDA (earnings before interest, tax, depreciation, and amortization) […]
Monsanto-Bayer Deal Completion Will Be Delayed
This week, Bayer stated that it expects the Monsanto (MON) acquisition to be delayed. Bayer asked for an extension to January 22.
American Vanguard: A Top 10 Agricultural Chemicals Stock
Over the past ten-year period, American Vanguard has risen 22.0% and significantly underperformed the S&P 500 Index’s rise of 69.2% over the same period.
Monsanto: A Top 10 Agricultural Chemicals Stock
Over the past ten-year period, Monsanto has risen 83.3% and outperformed the S&P 500 Index’s rise of 69.2% for the same period.
How Cotton Prices Moved in Week Ending June 30
The overall prices for cotton moved higher for the week ended June 30 compared to levels during the previous week.
An Update on Monsanto’s Merger with Bayer
Monsanto’s (MON) merger with Bayer AG is expected to be completed by 2H18. However, the merger depends on regulators’ approval.
Will Monsanto’s Soybean Seed and Traits Drive Its Profit?
Monsanto’s (MON) Soybean Seed and Traits segment is the second-largest subsegment under the Seeds and Genomics segment.
Monsanto’s Corn Seed and Traits Will Drive Its Profit
The Corn Seed and Traits segment is one of the strongest segments for Monsanto (MON). More than one-third of Monsanto’s sales come from the segment.
Following the Thread: Cotton Futures for the Week Ended June 23
On average, cotton futures traded lower week-over-week for the week ended June 23, 2017.
Monsanto’s Operating Margins Projected to Expand in Fiscal 2017
For the upcoming 3Q17, Wall Street analysts are estimating that Monsanto’s EBITDA will be $1.3 billion compared to $1.5 billion in 3Q16.
Monsanto’s Sales Expectation: There’s a Ray of Hope
For the upcoming 3Q17, analysts’ consensus sales estimate for Monsanto (MON) is $4.17 billion, which will be a slight fall from $4.2 billion in 3Q16.
Corn Prices Have Risen This June on Lower Inventory
For most of 2016, corn prices were relatively low compared to the trailing-five-year period. Let’s look at how corn prices have fared so far in 2017.
Your Soybean Price Update for June 2017
For most of 1H16, soybean prices were trading at their lowest levels in the past four years. However, soybean prices rose in 2H16.
Your June 2017 Corn, Wheat, and Soybean Crop Index Update
The USDA (U.S. Department of Agriculture) issued its monthly World Agricultural Supply and Demand Estimates Report for agricultural commodities on June 9, 2017.
Analysts’ Latest Recommendations for Deere
About 39.0% of these analysts have recommended a “buy” for the stock, while 43.0% have recommended a “hold.”
Why Analysts Are Expecting Deere’s Earnings Per Share to Rise
As of May 15, 2017, Wall Street analysts are expecting Deere (DE) to post EPS of $1.67 in fiscal 2Q17. That would be a 7.0% rise year-over-year.
Can Deere Surprise Analysts by Surpassing Revenue Estimates?
Analysts are expecting Deere (DE) to post revenue of $7.3 billion in 2Q17, a 2.6% rise year-over-year compared to $7.1 billion in 2Q16.
What Boosted DuPont’s Electronics & Communications Segment
DuPont’s Electronics & Communications segment DuPont’s (DD) Electronics & Communications segment, its fifth-largest revenue contributor, accounted for 6.6% of its revenue in 1Q17. The segment reported revenue of $510 million in 1Q17, representing a 3.4% increase YoY (year-over-year). The segment’s revenue grew primarily due to improved demand in the consumer electronics and semiconductor markets, which resulted in […]
What Could Drive Up Dow Chemical’s Operating Earnings per Share?
As of April 18, 2017, Wall Street analysts expect Dow Chemical (DOW) to post operating EPS (earnings per share) of $0.98 in 1Q17 compared to $0.89 in 1Q16.
Why Analysts Expect DuPont’s Revenues to Turn Around in 1Q17
Analysts expect DuPont’s (DD) revenue to rise on a year-over-year (or YOY) basis in 1Q17.
The Monsanto-Bayer Merger: Can This Seed Take Root?
Monsanto’s (MON) proposed merger with Bayer is expected to be completed by the 2Q18—but only if it gets the green light from antitrust authorities.
Behind Monsanto’s Margin Growth in Fiscal 2Q17
In fiscal 2Q17, Monsanto’s (MON) overall company margin, from both segments combined, grew from 57.33% to 58.18% YoY (year-over-year).
How Monsanto’s Valuation Compares to Its Peers
Monsanto (MON) is currently trading at a forward PE multiple of 23.9x, which is higher than the peer median of 22.6x.
Why Monsanto’s EBITDA Margins May Expand in Fiscal 2Q17
Wall Street analysts estimate that Monsanto (MON) could report EBITDA of $1.9 billion in fiscal 2Q17, which would mean an EBITDA margin of 40.7%.
Separation Cost to Impact Deere’s Earnings per Share in 1Q17
As of February 13, Wall Street analysts expect Deere to post EPS of $0.53 in 1Q17—a decrease of 33.8% year-over-year compared to $0.80 in 1Q16.
How Soybean Prices Moved in January 2017
In its January report, the USDA (United States Department of Agriculture) said that the world’s ending stock for soybeans fell slightly to 82.3 million metric tons from 82.9 million metric tons in December.
How Crop Prices Have Moved in January 2017
The crop index stood at 87.5 on January 20, 2017, up from 84.1 on December 20, 2016.
What’s Driving Food Consumption?
Most of the increase in food requirement will take place in developing countries because the standard of living is expected to improve in those countries.
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.
Why Monsanto’s Operating Margins Improved in 1Q17
Monsanto reported operating income or EBIT of $247 million, which rose from -$272 million in fiscal 1Q16.
Why Is Deere Trading at a Discount to Caterpillar?
As of December 30, 2016, Deere (DE) was trading at a one-year forward PE multiple of 22.6x compared to Caterpillar’s (CAT) of 30.6x.
How Monsanto’s Stock Has Tracked Its Historical Price-to-Earnings
The price-to-earnings ratio is a popular multiple investors use to determine the value of their investments in companies such as Monsanto (MON).
Overview: Monsanto’s Merger with Bayer in 2016
If Monsanto and Bayer merge, they’ll become the largest global pesticide and seed company. Monsanto’s business is the best fit for Bayer’s Crop Science segment.
Company Overview: A Look at Monsanto’s Key Executives
In 2016, Monsanto (MOO) had 21,000 employees. Let’s take a look at some of the company’s key executives.
How Monsanto’s Profitability Compares to Its Peers’
A discussion on margins is incomplete without looking at where a company’s industry peers stand in comparison.
Digging into Monsanto’s Cost of Doing Business
Monsanto’s intellectual property on different crops and traits gives it the ability to charge a premium. Let’s have a look at Monsanto’s cost structure.
What Geographic Segments Contribute to Monsanto’s Sales?
Including the United States, Mexico, and Canada, Monsanto’s total North American sales contribution stood close to 68% of its 2016 sales.
This Segment Has Become Important for Monsanto in the Last Decade
Monsanto (MON) conducts its global sales through two broad segments known as the Seeds & Genomics and Agricultural Productivity segments.
How Monsanto’s Sales Have Trended over the Past Decade
Since Monsanto’s (MON) beginnings in 1901, the company has evolved, undergoing technological innovations in the agricultural seed and traits business.
What’s Monsanto’s Digitally Integrated Solution?
Farmers (MOO) and the companies that serve them are becoming more efficient in their operations. Monsanto (MON) is one such company.
Monsanto Has a Huge Presence in Over 150 Countries
For over 100 years, Monsanto (MON) has been spread across several countries, with some of its brands being sold and used in over 150 countries.
Monsanto’s History Dates Back to 1901
In 1964, Monsanto introduced its first herbicide by the name of Ramrod. Four years later, in 1968, the company commercialized an herbicide called Lasso.
Monsanto Company: A 2016 Review
So far in 2016, Monsanto has returned 6.8%, failing to beat the S&P 500’s current return of 10.1%. However, over its life, Monsanto has easily beaten the S&P 500.
Inside the Soybean Inventory Rise in December
The global soybean stock-to-use ratio for soybeans rose to ~25.1% in December 2016, as compared to 24.8% in November 2016.
Global Corn Inventory Rises in December
The latest global stock-to-use ratio for corn in the December 2016 report stood at 21.7%—slightly above the ratio of 21.4% in November 2016.
Can Monsanto Report Earnings Growth in Fiscal 1Q17?
For 2017, Wall Street analysts are estimating that Monsanto (MON) could report EPS of $4.70, which would translate into earnings growth of 5.3% year-over-year.
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.
At What Valuation Is the Market Investing in Monsanto?
Monsanto’s (MON) forward PE valuation multiple has recently trended higher, and so has the price of its stock.
What’s in Store for Monsanto’s Profitability in 2017?
For fiscal 2017, Wall Street analysts are estimating that Monsanto will report $7.3 billion in gross income, resulting in a gross margin of 53.0%.
How Much Is Monsanto’s Revenue Expected to Rise in 2017?
For fiscal 2017, the Wall Street consensus estimate for Monsanto’s total sales is $13.9 billion. That would translate to a rise of 2.9% year-over-year.
Soybean’s Stock-to-Use Ratio Rose with the Inventory
Unlike corn, the global soybean stock-to-use ratio is lower compared to the global stock-to-use ratio of 26.5% last year.
Analyzing Corn’s November Stock-to-Use Ratio
Corn’s latest global stock-to-use ratio in November 2016 stood at 21.6%—just slightly below the ratio of 21.5% in October.
What 2016 Election Means for MON, POT, ADM, and Agribusiness
In this series, we’ll discuss the importance of the US presidential election in 2016 for the stock market in general and agribusiness stocks in particular.
Agrium Successful in Expanding Retail Gross Margins in 3Q16
In 3Q16, the Retail segment’s gross margin expanded YoY to 26% from 25% in 3Q15.
Monsanto, Bayer: How They’re Performing 1 Month after Merger Deal
It’s been a month since Bayer and Monsanto (MON) announced they would merge to become one of the largest agribusiness companies. Bayer and Monsanto stocks have both fallen.
Why Did Soybean Prices Fall in October?
In October, soybean prices continue to trend lower. On October 12, soybean prices stood at $9.5 per bushel—compared to $9.8 per bushel in September.
Soybean’s Stock-to-Use Ratio Rose in October
The global stock-to-use ratio for soybeans rose 1.6% to ~23.5% in October—compared to 22% in September. Soybean’s ratio is lower than last year.
Why Did Corn’s Stock-to-Use Ratio Fall in October?
The global corn stock-to-use ratio in October fell slightly due to a fall in the global corn inventory. The inventory fell 1.2% to ~217 million metric tons.
Crop Prices Start to Rise: Positives for Monsanto and Others
Each month, the USDA issues a report on the global stock-to-use ratios for key crops such as corn, soybeans, and wheat. The latest report was on October 12.
Why Agribusiness Companies May Not Be Impacted by the Election
US presidential elections do bring uncertainty over policies. But companies that serve basic needs such as agriculture seem to be impacted less.
Monsanto’s Fiscal 4Q16 Earnings: Giving the Market a Lift
On October 5, Monsanto (MON) reported its fiscal 4Q16 and fiscal 2016 earnings before the market opened. Following the opening bell, the stock drifted to a low of $101.90, but it rebounded on positive cues from its earnings.
A Quick Peek into the 4Q16 Starts of DOW, DD, and MON
Dow Chemical (DOW) and DuPont (DD) started 4Q16 on a positive note, with their stocks rising 1.1% and 1.3%, respectively, compared to their closes on September 30, 2016.
Analysts’ Price Targets for Agribusiness Companies
Over the past two weeks, the market saw the agricultural chemical industry moving toward further consolidation. On Tuesday, September 20, executives of major agricultural companies (MOO) testified in defense of these mergers to US lawmakers.
Performance of PotashCorp, Agrium Stocks since Merger News
Almost a week has passed since PotashCorp (POT) and Agrium (AGU) announced a merger, and the market hasn’t responded positively to the news.
Why Is Monsanto Trading at a 25% Discount to Bayer’s Offer?
Almost a week after the announcement of a merger deal between Monsanto and Bayer, Monsanto shares are trading at nearly a 25% discount to the offer price.
Bayer Pays $128 per Share to Seal the Deal with Monsanto
The Monsanto–Bayer merger, which is valued at $66 billion, is expected to create synergies of ~$1.5 billion after three years.
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.
Monsanto and Bayer Ink a Merger Deal, but It’s Not Over Yet
On September 14, Bayer and Monsanto (MON) signed a definitive merger agreement. The deal states that Bayer will acquire Monsanto for $57 billion in an all-cash transaction.
How September Soybean Prices Compare with Their 5-Year Trend
Soybean prices in September trended lower after reaching a high of $11.80 per bushel in June 2016.
Why the Soybean Stock-to-Use Ratio Rose in September
Month-over-month, soybean inventory in September 2016 rose to 72 million metric tons from 71 million metric tons in August 2016, according to the USDA.
Why the Near-Term Outlook for Agricultural Chemicals Looks Cloudy
The monthly USDA crop index stood at 86.4 on September 12. The index is significantly below its peak of slightly above 115 in June 2016.
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.
What Boosted Agrium’s Retail Gross Margin?
In 2Q16, the Retail segment’s gross margin increased to 22% from 20.5% 2Q15. The gross margin in crop nutrients increased from 17% to 20%.
Bunge Consistently Returns Value to Shareholders
On May 24, Bunge announced that its board of directors approved a 10.5% increase in the company’s regular quarterly common share cash dividend.
How Are Soybean Prices Trading in July 2016?
On July 13, soybean prices stood at $11.2 per bushel—compared to the low of ~$11.03 per bushel in June. The prices are on the lower end of the price band.
Monsanto Reports Fiscal 3Q16 Earnings: It’s a Negative Surprise
In this series, we’ll look at Monsanto’s 3Q16 earnings results and analyze what factors influenced them the most. We’ll also look at management’s guidance for the rest of the year.
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.
Why Are Soybean Prices Rising?
On June 26, 2016, soybean prices stood at $11 per bushel, compared to ~$10 per bushel on June 26, 2015.
What Could Explain Soybeans’ Low Stock-to-Use Ratio?
In June 2016, the global soybean stock-to-use ratio stood at 20.2%, which was at its lowest point compared to the past four years.
Valuation: How Does Monsanto Compare to Peers?
With Monsanto’s (MON) fiscal 2Q16 earnings release around the corner, let’s look at the company’s current valuation multiple and how it’s trended over the years.
How Did DAP Prices Move in the Week Ending June 17?
Ammonia is used to make phosphate fertilizers like DAP (diammonium phosphate) and MAP (monoammonium phosphate).
How Bunge Returns Value to Shareholders
Bunge (BG) paid $549 million to shareholders through dividends and share repurchases in 2015.
What Is Bunge’s Sustainable Expansion Strategy?
To maximize its returns, Bunge (BG) expands its operations through mergers and acquisitions, reinvests in its business, and returns value to shareholders.
How Improved Farm Economics Could Help Bunge’s Fertilizer Segment
Bunge’s (BG) smallest operating segment is its Fertilizer segment, which has operations in Argentina.
How Will the Surge in Sugar Prices Affect Bunge?
Sugar is the third largest contributor to Bunge’s total revenue.
Last Week’s DAP Fertilizer Price Trends: Must-Knows
Ammonia is used to make phosphate fertilizers like DAP (diammonium phosphate) and MAP (monoammonium phosphate).
Why a Monsanto Deal Would Help Bayer’s Geographical Synergies
We believe Monsanto’s acquisition will also help Bayer expand its geographic reach.
How Monsanto’s Business Fits into Bayer’s Portfolio
What’s in it for Bayer when it comes to acquiring Monsanto (MON)? The answer lies in Bayer’s business segments and geographic reach.