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What Do Analysts Think About The Future Of The Mosaic Company's (NYSE:MOS)?

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On 31 March 2019, The Mosaic Company (NYSE:MOS) announced its earnings update. Overall, analysts seem fairly confident, with earnings expected to grow by 35% in the upcoming year compared with the past 5-year average growth rate of -29%. Presently, with latest-twelve-month earnings at US$470m, we should see this growing to US$637m by 2020. Below is a brief commentary around Mosaic's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Mosaic

What can we expect from Mosaic in the longer term?

The longer term view from the 18 analysts covering MOS is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of MOS's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.

NYSE:MOS Past and Future Earnings, May 29th 2019
NYSE:MOS Past and Future Earnings, May 29th 2019

From the current net income level of US$470m and the final forecast of US$975m by 2022, the annual rate of growth for MOS’s earnings is 22%. EPS reaches $3.12 in the final year of forecast compared to the current $1.22 EPS today. Margins are currently sitting at 4.9%, which is expected to expand to 9.1% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Mosaic, I've compiled three fundamental factors you should look at:

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is Mosaic worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Mosaic is currently mispriced by the market.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Mosaic? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.