Q: The negatives I see for investing in MOS are:
- Operational and Production Issues
- Brazilian Credit Risks
- 2026 class-action lawsuit alleging price-fixing
- Surging sulfur input costs
Are any of these a major concern going forward to make you want to shy away from MOS as an investment?
Do you have any concern about balance sheet or free cash flow?
I see that P/S, P/C, and P/B are at the historic low end. What is actually the best metric for this company?
How would its rating compare to NTR? I'm guessing NTR would be rated roughly a "B" or "B+" ?
- Operational and Production Issues
- Brazilian Credit Risks
- 2026 class-action lawsuit alleging price-fixing
- Surging sulfur input costs
Are any of these a major concern going forward to make you want to shy away from MOS as an investment?
Do you have any concern about balance sheet or free cash flow?
I see that P/S, P/C, and P/B are at the historic low end. What is actually the best metric for this company?
How would its rating compare to NTR? I'm guessing NTR would be rated roughly a "B" or "B+" ?
5i Research Answer:
Valuations look fine here for MOS but the growth profile is a bit volatile. Margins tend to be thin as well. If fertilizer prices see sustaind increases it could do wel but is not a name that overly excites us.
Many of the risks also apply to NTR but we think it has a bit more stability and currently has much better momentum than MOS.