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Should You Investigate The Mosaic Company (NYSE:MOS) At US$18.63?

Simply Wall St

The Mosaic Company (NYSE:MOS), which is in the chemicals business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of US$22.97 and falling to the lows of US$18.02. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Mosaic's current trading price of US$18.63 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Mosaic’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Mosaic

Is Mosaic still cheap?

Good news, investors! Mosaic is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $34.73, but it is currently trading at US$18.63 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Mosaic’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Mosaic?

NYSE:MOS Past and Future Earnings, December 16th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Mosaic’s revenue growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. Unless expenses grow at the same level, or higher, this top-line growth should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since MOS is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MOS for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MOS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mosaic. You can find everything you need to know about Mosaic in the latest infographic research report. If you are no longer interested in Mosaic, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.