Bunge Global SA (NYSE: BG)

Sector: Consumer Defensive Industry: Farm Products CIK: 0001996862
Market Cap 15.29 Bn
P/B 1.89
P/E 238.98
P/S 0.33
ROIC (Qtr) 3.61
Div Yield % 1.20
Rev 1y % (Qtr) 71.64
Total Debt (Qtr) 17.78 Bn
Debt/Equity (Qtr) 1.13
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About

Bunge Global SA (BG), a leading global agribusiness and food company, operates in the agribusiness, refined and specialty oils, milling, and sugar and bioenergy segments. The company's main business activities include the purchase, storage, transportation, processing, and sale of agricultural commodities and commodity products. With a well-balanced global presence, Bunge's operations span across South America, North America, Europe, and Asia-Pacific. Bunge generates revenue through its primary products, which include vegetable oils, protein meals,...

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Investment thesis

Bull case

  • Robust tangible asset base of 43.20B provides 4.07x coverage of working capital 10.62B, indicating strong operational backing.
  • Retained earnings of 13.05B provide full 1.19x coverage of long-term debt 10.96B, indicating strong internal capital position.
  • Tangible assets of 43.20B provide robust 9.60x coverage of other current liabilities 4.50B, indicating strong asset backing.
  • Cash position of 1.86B provides exceptional 30.02x coverage of minority interest expenses 62M, indicating strong liquidity.
  • Cash reserves of 1.86B provide solid 0.93x coverage of other non-current liabilities 2.01B, indicating strong liquidity.

Bear case

  • Operating cash flow of 550M barely covers its investment activities of (5.68B), with a coverage ratio of -0.10, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 1.86B against inventory of 13.31B, the 0.14 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 550M provides thin coverage of dividend payments of (415M) with a -1.33 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.86B provide limited coverage of acquisition spending of (2.55B), which is -0.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (1.12B) provides weak coverage of capital expenditures of 1.67B, with a -0.67 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Farm Products
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ADM Archer-Daniels-Midland Co 33.15 Bn 30.75 0.41 9.76 Bn
2 TSN Tyson Foods, Inc. 21.32 Bn 106.61 0.39 8.36 Bn
3 BG Bunge Global SA 15.29 Bn 238.98 0.33 17.78 Bn
4 CALM Cal-Maine Foods Inc 3.98 Bn 1,160.43 2.88 0.00 Bn
5 FDP Fresh Del Monte Produce Inc 2.34 Bn 23.44 0.67 0.34 Bn
6 DOLE Dole plc 1.56 Bn 105.27 0.17 1.33 Bn
7 VITL Vital Farms, Inc. 1.26 Bn 20.76 1.77 0.06 Bn
8 AGRO Adecoagro S.A. 0.87 Bn 37.23 0.63 1.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.40 0.83
EV to Cash from Ops. EV/CFO 14.53 2.92
EV to Debt EV to Debt 1.04 3.55
EV to EBIT EV/EBIT 65.07 0.40
EV to EBITDA EV/EBITDA 13.97 -24.51
EV to Free Cash Flow [EV/FCF] EV/FCF 44.21 1.40
EV to Market Cap EV to Market Cap 1.21 3.04
EV to Revenue EV/Rev 0.40 0.77
Price to Book Value [P/B] P/B 1.89 0.54
Price to Earnings [P/E] P/E 238.98 89.91
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.19 -21.77
Dividend Payout Ratio % Div Payout % (Qtr) 29.70 42.88
Dividend per Basic Share Div per Share (Qtr) 2.76 0.97
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -48.40 6.76
Interest Coverage Int. cover (Qtr) 4.26 -31.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -39.04 -1,577.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.38 86.77
Dividend Growth (1y) % Div 1y % (Qtr) 2.79 11.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.52 -87.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.28 -202.55
EBIT Growth (1y) % EBIT 1y % (Qtr) 6.27 -99.71
EBT Growth (1y) % EBT 1y % (Qtr) 6.66 -133.79
EPS Growth (1y) % EPS 1y % (Qtr) 16.42 -151.42
FCF Growth (1y) % FCF 1y % (Qtr) -203.02 135.44
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.44 -28.83
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.30 1.37
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.12
Cash Ratio Cash Ratio (Qtr) 0.12 0.98
Current Ratio Curr Ratio (Qtr) 1.66 2.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.13 -1.90
Interest Cover Ratio Int Coverage (Qtr) 4.26 -31.98
Times Interest Earned Times Interest Earned (Qtr) 4.26 -31.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.70 691.86
EBIT Margin % EBIT Margin % (Qtr) 3.72 650.76
EBT Margin % EBT Margin % (Qtr) 2.85 644.45
Gross Margin % Gross Margin % (Qtr) 5.80 -69.17
Net Profit Margin % Net Margin % (Qtr) 2.20 644.34