Mosaic Bulls Make Have To Ride Out One More Buck Before Major Upside Commences - Mosaic (NYSE:MOS)

MOS has had a tough go of it since February of this year, dropping from $53.75 to a low of $43.33 recently.
Prior to the rally that took the stock up to $53.75, Mosaic had frustrated shareholders with negative performance since peaking out at $63 and change in 2013, all while the broad equity market has hit new highs on a regular basis.

Does the company have the fundamental "goods" to press the stock higher for an extended period of time? Or, are the bulls destined for more disappointment? Below is a quick look at the fundamentals and technicals to answer those questions.

What The Bulls See

A nice 2.2 percent annual dividend yield

Some cheap valuation metrics:

An enterprise value of $17.7 billion versus a market capitalization of only $17.01 billion

A price-to-book ratio of 1.68

A price-to-sales ratio of 1.86

12.01 percent net profit margins that spin off $387.51 million in positive annual levered free cash flows

Decent management metrics:

A return-on-assets of 5.32 percent

A return-on-equity of 10.52 percent

A fairly good balance sheet profile:

37.49 percent debt-to-equity ratio

A current ratio of 3.24

Related Link: Benzinga's Top Upgrades For May Include Mosaic Co

What The Bears See

A P/E of approximately 16 versus a decrease in annual revenues and EPS for 2014 – although the company notably has shown an increase in each for 2015

Total debt that easily exceeds total cash

The Technical Take

Technicians note that an uptrend exists on Mosaic's long-term chart and will remain intact as long as $43.33 holds up as support. Below that level, no additional support comes into play until $38.98. For those long of the stock, some horizontal line resistance comes in at the $47.21–$48.23 range and then again at $53.75.
Overall
Buyers will almost certainly be aggressively stepping in and taking positions if Mosaic comes back down to the $43.33–$43.50 range.

The company's fundamentals look interesting from a buyer's perspective, especially if the revenues and EPS continue to increase on a quarterly basis after the miserable 2014. This could, barring any earnings disappointments, be a nice story for the bulls.
Image Credit: Public Domain

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