Low Price-to-Earnings Ratio
Attractive Price-to-Sales Ratio
Low EV/EBITDA Ratio
Decent Return on Equity
Stable Gross Profit Margin
Strong Liquidity Position
Manageable Debt Levels
Strong Market Position and Global Footprint
Commitment to Sustainability and Innovation
Active Share Repurchase Strategy
Acquisition of Viterra
Growth in Biofuel Demand
Capital Investment in Growth Projects
High Price-to-Free Cash Flow Ratio
Low Operating and Net Profit Margins
Cash Ratio Below 0.5
Challenging Operating Conditions
Volatility in Biofuel Margins
Geopolitical and Policy Uncertainties
Lower Expected Earnings in 2025
Bunge Limited demonstrates a strong market position and commitment to sustainability, though it faces challenges in the current operating environment and uncertainty regarding future earnings growth. The company's strategic acquisitions and capital investments provide a solid foundation for potential future success, despite short-term headwinds.
Analysis Date: February 5, 2025
Last Updated: April 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$274.83
Current Market Price: $71.06
IV/P Ratio: 3.87x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
74.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for BG
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (8.88)
P/B ratio ≤ 1.5 (0.92)
Current ratio ≥ 2.0 (2.15x)
Long-term debt < Net current assets (0.62x)
Margin of safety (74.0%)
BG meets all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity of 10.67% shows that the company is generating a reasonable return for its shareholders.
The gross profit margin of 6.67% is indicative of the company's ability to retain earnings after accounting for the cost of goods sold.
Both operating profit margin (3.33%) and net profit margin (2.14%) are relatively low, suggesting challenges in managing costs and overall profitability.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.20%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
2.42%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
6.67%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
2.14%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 2.15 indicates that the company has more than enough current assets to cover its short-term liabilities, which is a sign of good liquidity.
The debt-to-equity ratio of 0.56 suggests that the company is not overly reliant on debt for financing, which is a positive sign for financial stability.
A cash ratio of 0.45 indicates that the company may struggle to cover short-term obligations solely with cash, which could pose a liquidity risk.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.56x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.15x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Bunge Limited operates with a robust global operating model, allowing for effective management of supply and demand across various regions. The company's established relationships with regulatory authorities and farmers enhance its competitive edge.
Bunge has achieved a significant milestone in traceability for soy purchases in Brazil, marking its commitment to sustainability. The company's partnerships aimed at developing lower carbon intensity feedstocks align with global sustainability trends.
The company has returned significant capital to shareholders through share repurchases, totaling $1.1 billion in 2024, which reflects confidence in its financial health and a commitment to enhancing shareholder value.
Bunge faced significant challenges in South America, impacting margins and operational performance. The company noted that these conditions contributed to an adjusted EPS drop in the fourth quarter of 2024.
Uncertainty regarding U.S. biofuel policies has created a volatile environment that negatively affected margins, particularly in North America, which could impact future earnings.
The acquisition of Viterra is expected to enhance Bunge's asset diversification and capabilities, positioning the company to better navigate future market challenges and opportunities.
Bunge anticipates increased global demand for biofuels, particularly soy oil, as policies become clearer and markets stabilize, providing potential for revenue growth.
Bunge plans to invest between $1.5 billion and $1.7 billion in capital expenditures in 2025, focusing on large multiyear growth projects, which should support future earnings.
The company highlighted limited visibility in its outlook due to geopolitical uncertainty and evolving biofuel policies, which may hinder growth in the near term.
Bunge's guidance for 2025 anticipates adjusted EPS to remain flat at approximately $7.75, indicating potential stagnation in earnings growth amid ongoing challenges.