Mosaic Is Way Too Cheap

Jul. 15, 2022 12:43 PM ETThe Mosaic Company (MOS)51 Comments
Leo Nelissen profile picture
Leo Nelissen
20.91K Followers

Summary

  • In this article, I start by explaining why I believe in a long-term agriculture bull market due to energy and geopolitical issues.
  • Florida-based Mosaic is benefiting from its geographical location and the fact that reliable fertilizer production is more important than "ever".
  • The stock is significantly undervalued after the most recent stock price decline, and I rate Mosaic as a strong buy.

Grüner Sprossenwächst. Maissprossen

t_kimura/iStock via Getty Images

Introduction

It's time to talk about two (related) things. First of all, we have to discuss global agriculture, which has become a hot topic as a result of fertilizer shortages and the war in Ukraine, which made things worse. I will explain why

MOS Finviz Chart

FINVIZ

Corn vs. oil

CME Group

TradingView (NOLA DAP)

TradingView (NOLA DAP)

Global corn production

CME Group

Image

Our World In Data

TradingView (TTE vs. Henry Hub Ratio)

TradingView (TTE vs. Henry Hub Ratio)

US weather outlook

USDA

MOS 1Q22 Earnings Presentation

Mosaic

MOS financials

TIKR.com

MOS valuation

TIKR.com

This article was written by

Leo Nelissen profile picture
20.91K Followers
I'm a Buy-Side Macro Expert/Financial Markets Analyst. On Seeking Alpha, I discuss a wide range of topics including long-term dividend (growth) investments, mid-term trading opportunities, commodities, rates, and related. A big part of my philosophy is to incorporate as much macro as possible in my articles as it helps investors to make their own decisions and to be on top of all major developments. My DMs are always open. Also, I'm on Twitter (@Growth_Value_) in case you want to say hi! Long-Term Dividend HoldingsPSA, DUK, HD, PEP, RTX, UNP, VLO, DE, ABBV, CAT, HBAN, NSC, LHX, XOM, CVX, CP, LMT, NOC, CME, DHR, EXR

Disclosure: I/we have a beneficial long position in the shares of MOS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

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