Bunge Global (BG) AI Stock Analysis

1,431 Followers

Top Page

Bunge Global

(NYSE:BG)

69Neutral

Bunge Global's stock score reflects a mix of robust financial stability and operational efficiency, offset by declining revenue and free cash flow growth. The technical analysis supports a moderately bullish outlook, while the valuation indicates potential undervaluation. However, the earnings call reveals significant challenges from geopolitical uncertainties and the biofuel sector, which weigh on the overall score.

Positive Factors

Earnings Outlook

Despite a tough ag environment, BG’s earnings remain resilient, with expectations of EPS over $9 this year and next.

Valuation

Valuation increasingly attractive, reiterate Buy.

Negative Factors

EPS Performance

Following a 4Q EPS miss and 2025 EPS outlook below the Visible Alpha consensus, the BG shares were down 5% at time of writing.

Viterra Acquisition

The Viterra deal is expected to close later than initially anticipated, adding to investor’s concerns.

Bunge Global (BG) vs. S&P 500 (SPY)

Market Cap

$9.62B

Dividend Yield3.79%

Average Volume (3M)1.90M

Price to Earnings (P/E)9.0

Beta (1Y)0.12

Revenue Growth-10.78%

EPS Growth-45.77%

CountryUS

Employees23,000

SectorBasic Materials

Sector Strength58

IndustryAgricultural Farm Products

Share Statistics

EPS (TTM)8.08

Shares Outstanding133,968,050

10 Day Avg. Volume1,697,319

30 Day Avg. Volume1,897,265

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.18

Price to Cash Flow (P/CF)2.30

P/FCF Ratio3.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$86.17

Price Target Upside23.97% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Bunge Global Business Overview & Revenue Model

Company DescriptionBunge Limited operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains primarily wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies; and for industrial and biodiesel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that include cooking oils, shortenings, margarines, mayonnaise, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; quinoas and millets; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Limited was founded in 1818 and is headquartered in St. Louis, Missouri.

How the Company Makes MoneyBunge Global makes money through a diversified revenue model that includes several key streams. One major source of income is the processing of oilseeds into vegetable oils and protein meals, which are essential ingredients for both food and animal feed industries. Additionally, the company generates significant revenue through the merchandising and trading of various agricultural commodities such as grains, soybeans, and corn. Bunge also earns income from its food products division, which creates value-added products like edible oils and margarines for retail and foodservice customers. Furthermore, Bunge's bioenergy segment contributes to its earnings by producing and selling ethanol and biodiesel. Strategic partnerships and joint ventures with other agribusiness and food companies enhance Bunge's global reach and operational efficiency, further supporting its revenue streams.

Bunge Global Financial Statement Overview

Summary

Bunge Global demonstrates a stable financial position with solid profitability and operational efficiency. However, the declining revenue and free cash flow growth signal potential challenges that need addressing. The company's reduced leverage and strong equity position provide a buffer against market volatility. Continued focus on revenue growth and cash flow management will be crucial for sustaining long-term financial health.

Income Statement

Positive

Bunge Global's income statement shows a mixed performance. The company experienced a revenue decline with a negative growth rate from the previous year, indicating potential market challenges. Despite this, the gross profit margin remains robust at 6.39%, and net profit margin stands at 2.14%, reflecting effective cost management. The EBIT and EBITDA margins are stable at 3.05%, indicating consistent operational efficiency.

Balance Sheet

Positive

The balance sheet of Bunge Global highlights strong financial stability with a declining debt-to-equity ratio of 0.24, reflecting reduced leverage. The equity ratio is strong at 39.82%, showcasing financial resilience. However, the return on equity has decreased to 11.47%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Neutral

The cash flow statement reveals a decline in free cash flow, with a negative growth rate, which could pose liquidity risks if it persists. The operating cash flow to net income ratio is 1.67, indicating solid cash generation relative to net income. However, the free cash flow to net income ratio has dropped to 1.67, suggesting challenges in converting profits into free cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
53.11B	59.54B	67.23B	59.15B	41.40B
	Gross Profit
3.39B	4.84B	3.68B	3.36B	2.79B
	EBIT
1.83B	3.42B	2.40B	2.76B	1.66B
	EBITDA
2.46B	4.02B	2.88B	3.23B	2.11B
	Net Income Common Stockholders
1.14B	2.24B	1.61B	2.08B	1.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.31B	2.71B	1.10B	902.00M	352.00M
	Total Assets
24.90B	25.37B	24.58B	23.79B	23.66B
	Total Debt
2.42B	5.76B	5.62B	6.82B	8.10B
	Net Debt
-886.00M	3.15B	4.52B	5.92B	7.75B
	Total Liabilities
14.99B	13.56B	14.62B	15.96B	17.45B
	Stockholders Equity
9.91B	10.85B	9.96B	7.83B	6.21B
Cash Flow		Free Cash Flow
524.00M	2.19B	-6.10B	-3.29B	-3.90B
	Operating Cash Flow
1.90B	3.31B	-5.55B	-2.89B	-3.54B
	Investing Cash Flow
-1.11B	-1.01B	6.50B	5.11B	1.81B
	Financing Cash Flow
-90.00M	-856.00M	-769.00M	-1.63B	1.76B

Bunge Global Technical Analysis

Technical Analysis Sentiment

Negative

Last Price69.51

Price Trends

50DMA

73.33

Negative

100DMA

77.64

Negative

200DMA

87.48

Negative

Market Momentum

MACD

0.75

Negative

RSI

64.80

Neutral

STOCH

86.43

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BG, the sentiment is Negative. The current price of 69.51 is below the 20-day moving average (MA) of 74.53, below the 50-day MA of 73.33, and below the 200-day MA of 87.48, indicating a bearish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BG.

Bunge Global Risk Analysis

Bunge Global disclosed 41 risk factors in its most recent earnings report. Bunge Global reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Bunge Global Peers Comparison

Overall Rating

UnderperformOutperform

Sector (47)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	76 Outperform	$4.58B	7.27	34.26%	4.58%	15.57%	38.87%
TSN	75 Outperform	$20.89B	19.78	5.74%	3.40%	1.27%	―
FDP	71 Outperform	$1.46B	10.32	7.32%	3.44%	-0.95%	―
BG	69 Neutral	$9.62B	8.99	10.95%	3.79%	-10.78%	-45.77%
ADM	60 Neutral	$20.80B	11.86	7.78%	4.68%	-9.01%	-43.53%
Sector *	47 Neutral	$2.32B	-2.83	-21.67%	3.65%	4.83%	-28.82%

* Basic Materials Sector Average

Performance Comparison

Bunge Global

69.51

-34.86

-33.40%

ADM

Archer Daniels Midland

41.79

-19.77

-32.12%

CALM

Cal-Maine Foods

90.33

32.01

54.89%

FDP

Fresh Del Monte Produce

29.61

5.39

22.25%

TSN

Tyson Foods

57.65

1.33

2.36%

SFD

Smithfield Foods

18.95

-1.54

-7.52%

Bunge Global Earnings Call Summary

Earnings Call Date: Feb 5, 2025 | % Change Since: -6.45% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Bunge's strategic progress and liquidity strength but was overshadowed by operational challenges and declining earnings. While the company emphasized regulatory approvals and share repurchase achievements, it also faced significant headwinds from geopolitical uncertainties, challenging market conditions, and policy impacts, particularly in the biofuel sector.

Highlights

Regulatory and Strategic Approvals

Bunge received regulatory approval from the Canadian government for the Viterra transaction and is in the late stages of regulatory processes in China and Europe. The company also announced the completion of the sale of its sugar and bioenergy joint venture in Brazil.

Share Repurchase Program

Bunge repurchased a total of $1.1 billion of shares in 2024, indicating a strong commitment to returning capital to shareholders.

Strong Liquidity Position

At year-end, Bunge had committed credit facilities of $8.7 billion, all unused, and a cash balance of $3.3 billion, providing ample liquidity.

Sustainability Achievements

Bunge became the first global commodity exporter capable of 100% traceability and monitoring of both direct and indirect soy purchases for Brazil's priority regions.

Lowlights

Challenging Operating Conditions

Bunge did not close the year as expected due to challenging operating conditions in South America, impacting industry margins throughout the oilseed and grain value chains.

Decline in Earnings

Adjusted EPS for Q4 was $2.13, down from $3.70 in the prior year. Adjusted core segment EBIT was $548 million, compared to $881 million last year.

Uncertain Biofuel Policy Impact

There is uncertainty related to U.S. biofuel policy affecting margins in North America, with refining premiums expected to be more challenging in 2025.

Lower Margins and Visibility

The company expects agribusiness full-year results to be down from last year, with lower results in processing and merchandising forecasted slightly down, reflecting limited forward visibility and geopolitical uncertainties.

Company Guidance

During the Bunge Global S.A. Fourth Quarter 2024 Earnings Call, the company provided detailed guidance for the upcoming year. Bunge expects its full-year 2025 adjusted earnings per share (EPS) to be approximately $7.75, taking into account the current macro environment and market conditions. The company reported a fourth-quarter adjusted EPS of $2.13, down from $3.70 in the prior year, with adjusted core segment earnings before interest and taxes (EBIT) at $548 million, compared to $881 million last year. For 2025, Bunge anticipates capital expenditures between $1.5 billion and $1.7 billion, and an adjusted annual effective tax rate of 21% to 25%. The company also highlighted its expectation for improved results in South America, offset by lower performance in processing and merchandising segments across North America and Europe. Additionally, Bunge is focused on completing its acquisition of Viterra and CJ Selecta, and plans to continue share repurchases as a vital part of its capital allocation strategy, with $800 million remaining on the current buyback authorization.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.