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Bunge Global (BG)
NYSE:BG
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Bunge Global
(NYSE:BG)65Neutral
Positive Factors
Earnings resilience
Despite a tough ag environment, BG’s earnings remain resilient, with expectations of EPS over $9 this year and next.
Stock valuation
Valuation increasingly attractive, reiterate Buy.
Negative Factors
EPS outlook
Following a 4Q EPS miss and 2025 EPS outlook below the Visible Alpha consensus, the BG shares were down 5% at time of writing.
Bunge Global (BG) vs. S&P 500 (SPY)
Market Cap
$9.61B
Dividend Yield3.79%
Average Volume (3M)1.72M
Price to Earnings (P/E)9.0
Beta (1Y)0.18
Revenue Growth-10.78%
EPS Growth-45.77%
CountryUS
Employees23,000
SectorBasic Materials
Sector Strength56
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)8.08
Shares Outstanding133,968,050
10 Day Avg. Volume1,651,802
30 Day Avg. Volume1,715,355
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
$90.29Price Target Upside25.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Bunge Global Business Overview & Revenue Model
Company DescriptionBunge Global (BG) is a leading agribusiness and food company that operates in several sectors, including agriculture, food processing, and bioenergy. The company is known for its comprehensive supply chain capabilities, which encompass the sourcing, processing, and distribution of agricultural commodities such as oilseeds, grains, and sugar. Bunge Global is committed to connecting farmers to consumers by delivering essential food, feed, and fuel products to a growing population.
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, declining revenue and free cash flow growth signal potential challenges. The company's reduced leverage and strong equity position provide a buffer against market volatility.Income Statement
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.68
Positive
Balance Sheet
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.75
Positive
Cash Flow
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 |
| 1.62B | 3.29B | 2.48B | 2.85B | 1.53B | EBITDA |
| 2.46B | 4.02B | 2.84B | 2.78B | 2.13B | 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
Negative
71.71
Price Trends
74.92
Negative
80.90
Negative
90.75
Negative
Market Momentum
-0.71
Negative
43.83
Neutral
32.01
Neutral
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 71.71 is above the 20-day moving average (MA) of 71.00, below the 50-day MA of 74.92, and below the 200-day MA of 90.75, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 32.01 is Neutral, 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 42 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.29B | 13.29 | 17.01% | 2.45% | -8.95% | 1.35% | |
71 Outperform | $1.42B | 12.60 | 8.61% | 1.83% | -23.68% | 11.84% | |
69 Neutral | $7.59B | 18.79 | 27.35% | 1.94% | 0.86% | 27.81% | |
65 Neutral | $9.61B | 8.97 | 11.47% | 3.79% | -10.78% | -45.77% | |
60 Neutral | $21.98B | 12.55 | 7.78% | 4.39% | -9.01% | -43.53% | |
55 Neutral | $3.33B | 176.27 | 3.62% | ― | -2.17% | -26.53% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
BG
Bunge Global
71.71
-17.38
-19.51%
ADM
Archer Daniels Midland
45.80
-6.37
-12.21%
ANDE
The Andersons
41.40
-10.86
-20.78%
TTC
The Toro Company
78.01
-14.18
-15.38%
INGR
Ingredion
129.21
15.77
13.90%
CARG
CarGurus
32.46
9.91
43.95%
Bunge Global Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -3.49% | Next Earnings Date: Apr 23, 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.