2024-02-02 05:29:21 ET
Summary
- Bunge's stock price is closely tied to corn, soybean, and wheat prices, which are currently experiencing oversupply and downward pressure on prices.
- Bunge's core segments have seen increased net sales and EBIT margin due to higher commodity prices, but it does not represent an improvement in internal efficiency.
- Bunge's financial metrics are not superior to its competitors, which suggests that the market will not pay a premium for the company.
Investment Thesis
I do not consider Bunge Global SA ( BG ) to represent an investment opportunity, as the share value of Bunge follows the same trend as the prices of the main agricultural commodities. Corn, soybean, and wheat display relatively high prices, and the existing oversupply exerts downward pressure on prices. Additionally, Bunge is not a company that demonstrates levels of efficiency and profitability superior to similar companies that will indicate exceptional growth.
Bunge
I want to start this analysis by showing the relationship between Bunge's stock price and the soybean ( S_1:COM ), corn ( C_1:COM ), and wheat ( W_1:COM ) prices; they all move in the same direction. Therefore, Bunge's sales and incomes follow the cyclical component of the agricultural commodity prices....
Read the full article on Seeking Alpha
For further details see:
Bunge: A Negative Outlook Due To Commodity Price Decline