Despite logistic difficulties, the fertilizers industry is expected to witness growth due to its steady demand in agricultural production. The worldwide fertilizer market is projected to expand significantly as population growth drives food demand.
In addition, the U.S. Department of Agriculture will shortly begin accepting public comments on the environmental and associated aspects of 21 potentially viable projects to enhance fertilizer output across the United States, totaling up to $88 million.
Furthermore, according to Reportlinker, the global fertilizers market is projected to register a CAGR of 5.8% until 2028. Such favorable prospects of the industry are expected to drive solid growth for quality stocks in this sector.
The Mosaic Company (MOS)
MOS 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.
In terms of forward EV/Sales, MOS is currently trading at 1.06x, 30% lower than the industry average of 1.51x. Its forward Price/Sales of 0.86x is 25.7% lower than the industry average of 1.16x.
MOS’ trailing-12-month gross profit margin of 32.53% is 5.6% higher than the 30.82% industry average. Its trailing-12-month EBIT margin of 28.95% is 112.6% higher than the 13.62% industry average.
MOS’ net sales increased 56.5% year-over-year to $5.35 billion in the fiscal third quarter ended September 30, 2022. Its net earnings grew 126.3% year-over-year to $841.70 million. Also, its EPS increased 149.5% year-over-year to $2.42.
Analysts expect MOS’ revenue to be $16.19 billion in 2023. Its EPS is expected to rise 14.7% per annum for the next five years. Over the past year, the stock has gained 23% to close the last trading session at $48.35.
MOS’ POWR Ratings reflect this promising outlook. It has an overall B rating, equating to a Buy. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has an A grade for Value and a B for Growth and Quality. Within the Agriculture industry, it is ranked #9 out of 28 stocks. Click here for additional POWR Ratings for Sentiment, Momentum, and Stability for MOS.
Dole plc (DOLE)
DOLE, headquartered in Dublin, Ireland, engages in sourcing, processing, marketing, and distributing fresh fruit and vegetables. The company operates through four segments: Fresh Fruit; Diversified Fresh Produce – EMEA; Diversified Fresh Produce – Americas and ROW; and Fresh Vegetables.
On November 15, 2022, Dole Fresh Vegetables, a division of DOLE, announced the implementation and activation of two General Electric 2.8-Megawatt wind turbines at its salad processing plant in Soledad, CA.
Timothy Escamilla, President of Dole Fresh Vegetables, said, “The turbines are projected to produce over 19 million kilowatt hours of clean electricity per year, which will result in a 70% offset to our overall energy consumption at this site.”
In terms of forward EV/Sales, DOLE is currently trading at 0.27x, 84.8% lower than the industry average of 1.77x. Its trailing-12-month Price/Sales of 0.10x is 91.1% lower than the industry average of 1.14x.
Its trailing-12-month asset turnover ratio of 1.97% is 137.9% higher than the industry average of 0.83%.
DOLE’s revenue increased 16.8% year-over-year to $2.27 billion for the third quarter ended September 30, 2022. Its gross profit came in at $133.48 million, up 35.1% year-over-year. Moreover, its EPS came in at $0.42, compared to a loss per share of $0.35 in the year-ago period.
Street expects DOLE’s revenue to increase 2.3% year-over-year to $9.38 billion in 2023. Its EPS is estimated to grow 24.5% year-over-year to $1.17. It surpassed EPS estimates in three out of the four trailing quarters. The stock has gained 36.9% over the past three months to close the last trading session at $10.50.
DOLE’s strong fundamentals are reflected in its POWR Ratings. It has an overall B rating, which indicates a Buy in our proprietary rating system. It also has a B grade for Growth and Value.
DOLE is ranked #8 in the same industry. To see additional POWR Ratings for Stability, Momentum, Sentiment, and Quality for DOLE, click here.
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MOS shares . Year-to-date, MOS has gained 10.21%, versus a 4.76% rise in the benchmark S&P 500 index during the same period.
About the Author: RashmiKumari
Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions. More...
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