Mosaic Has Crashed, Is It A Buy?

Mar. 27, 2023 1:32 PM ETThe Mosaic Company (MOS) StockMOS23 Comments

Summary

  • In this article, we start by assessing why agriculture/fertilizer fundamentals remain favorable, thanks to limited supply and rebounding demand.
  • Mosaic is in a good spot to benefit from this, thanks to increasing production and investments in value-adding projects.
  • After falling 50% from its highs, the MOS valuation has become very attractive. I believe a rebound in energy prices and economic confidence could trigger a sustainable rally.
Hand von Bauern gießen chemische Dünger für jungen Mais in den Betrieb

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Introduction

America's largest potash and phosphates fertilizer producer has lost roughly 50% from its 2022 peak. The Mosaic Company (NYSE:MOS) was struggling with a number of headwinds, including falling fertilizer prices, weak demand, and increasing recession fears hurting energy prices and basic material

This article was written by

42.95K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s 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.

Not financial advice.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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