The Mosaic Company MOS recently announced that its board has approved a new $1 billion share buyback authorization. This replaces the earlier authorization which had $700 million of the original $1.5 billion remaining.
The updated authorization highlights Mosaic's constant focus on a balanced utilization of excess capital that includes returning capital to stockholders.
The company recently completed the previously announced early redemption of $450 million in notes that were due November 2021. This reflects the first step toward achieving the company's objective of retiring $1 billion of debt over time. It expects to meet the debt retirement objective and execute share buybacks utilizing strong cash flow generated this year and beyond.
Mosaic has raised and extended its committed line of credit. The five-year, $2.5 billion facility matures in November 2026 and replaces the $2.2 billion line of credit maturing in November 2022. This increase in size provides more security and flexibility as well as reflects growth in the business.
The company noted this share repurchase authorization reflects its ongoing commitment to balanced capital allocation. The successful transformation of business has allowed it to invest in growth, strengthen the balance sheet and return capital to shareholders. With an improving cost position and balance sheet, the company is well-poised for the future.
Shares of Mosaic have gained 70.4% in the past year compared the industry’s growth of 43.4%.
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Mosaic, in its last earnings call, stated that it expects strong agricultural trends to continue through the second half of 2021, driving demand for fertilizers. Grower economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather.
The company predicts $90-$100 per ton improvement in average realized price in the Phosphates segment sequentially in the third quarter. For the Potash segment, $25-$35 per ton improvement in average realized prices is expected in the third quarter.
The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Zacks Rank & Other Key Picks
Mosaic currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Nucor Corporation NUE, Dow Inc. DOW and Cabot Corporation CBT.
Nucor has a projected earnings growth rate of around 489.2% for the current year. The company’s shares have soared 160.4% in a year. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 34.5% in the past year. It currently flaunts a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 34.7% in the past year. It currently carries a Zacks Rank #2 (Buy).
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