Bunge Stock Buy Hold or Sell Recommendation

BG
 Stock
  

USD 90.95  0.26  0.29%   

Allowing for the 90-day total investment horizon and your highly speculative risk level, our recommendation regarding Bunge is 'Strong Hold'. Macroaxis provides Bunge buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Bunge positions. The advice algorithm takes into account all of Bunge's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Bunge's buy-and-hold perspective. Continue to Bunge Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Bunge and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Bunge.

Execute Bunge Buy or Sell Advice

The Bunge recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Bunge. Macroaxis does not own or have any residual interests in Bunge or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Bunge's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell BungeBuy Bunge
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Bunge has a Risk Adjusted Performance of (0.13), Jensen Alpha of (0.07), Total Risk Alpha of 0.0927 and Treynor Ratio of (0.28)
Macroaxis provides advice on Bunge to complement and cross-verify current analyst consensus on Bunge. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Bunge is not overpriced, please confirm all Bunge fundamentals, including its shares owned by institutions, price to sales, net income, as well as the relationship between the price to earning and gross profit . Given that Bunge has a price to earning of 5.75 X, we suggest you to validate Bunge market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Bunge Trading Alerts and Improvement Suggestions

Bunge generated a negative expected return over the last 90 days
Bunge reports about 650 M in cash with (4.56 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.28.
Over 86.0% of the company shares are held by institutions such as insurance companies
Latest headline from seekingalpha.com: Bunge upgraded at BofA on valuation, with little downside risk to the ag cycle - Seeking Alpha

Bunge Returns Distribution Density

The distribution of Bunge's historical returns is an attempt to chart the future uncertainty of Bunge's future price movements. The chart of the probability distribution of Bunge stock daily returns describes the distribution of returns around its average expected value. We use Bunge price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Bunge returns is essential to provide solid investment advice for Bunge stock.
Mean Return-0.22Value At Risk-4.23
Potential Upside3.16Standard Deviation2.43
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Bunge historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Bunge Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Bunge is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bunge backward and forwards among themselves. Bunge's institutional investor refers to the entity that pools money to purchase Bunge's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Capital World InvestorsCommon Shares17.1 M1.9 B
Vanguard Group IncCommon Shares14.1 M1.6 B
Blackrock IncCommon Shares12.3 M1.4 B
Price T Rowe Associates IncCommon Shares6.8 M748.6 M
Fmr LlcCommon Shares6.3 M698.6 M
State Street CorpCommon Shares4.2 M463.1 M
Ubs Asset Management Americas IncCommon Shares3.9 M430.9 M
Note, although Bunge's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Bunge Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(662 M)(493 M)(524 M)(365 M)(399 M)(430.5 M)
Depreciation Amortization and Accretion609 M622 M548 M435 M424 M452.86 M
Net Cash Flow or Change in Cash and Cash Equivalents(333 M)(212 M)(71 M)59 M524 M565.37 M
Net Cash Flow Business Acquisitions and Disposals(479 M)(984 M)709 M180 M612 M660.32 M
Issuance Repayment of Debt Securities86 M956 M(438 M)2.2 B(1.1 B)(1.13 B)
Payment of Dividends and Other Cash Distributions(247 M)(271 M)(283 M)(282 M)(289 M)(311.82 M)
Net Cash Flow from Financing(180 M)631 M(771 M)1.76 B(1.63 B)(1.67 B)
Net Cash Flow from Investing1.82 B410 M1.5 B1.81 B5.11 B5.52 B
Net Cash Flow Investment Acquisitions and Disposals2.98 B1.87 B1.31 B1.98 B4.89 B5.27 B
Net Cash Flow from Operations(1.98 B)(1.26 B)(808 M)(3.54 B)(2.89 B)(2.97 B)
Effect of Exchange Rate Changes on Cash3 M11 M5 M19 M(63 M)(67.97 M)

Bunge Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bunge or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bunge stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bunge stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.07
β
Beta against DOW0.84
σ
Overall volatility
2.45
Ir
Information ratio -0.02

Bunge Volatility Alert

Bunge exhibits very low volatility with skewness of -0.6 and kurtosis of -0.14. However, we advise investors to further study Bunge technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bunge's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bunge's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Bunge Implied Volatility

Bunge's implied volatility exposes the market's sentiment of Bunge stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bunge's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bunge stock will not fluctuate a lot when Bunge's options are near their expiration.

Bunge Fundamentals Vs Peers

Comparing Bunge's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Bunge's direct or indirect competition across all of the common fundamentals between Bunge and the related equities. This way, we can detect undervalued stocks with similar characteristics as Bunge or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Bunge's fundamental indicators could also be used in its relative valuation, which is a method of valuing Bunge by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Bunge to competition
FundamentalsBungePeer Average
Return On Equity23.78 %(0.31) %
Return On Asset5.65 %(0.14) %
Profit Margin3.12 %(1.27) %
Operating Margin3.88 %(5.51) %
Current Valuation24.46 B16.62 B
Shares Outstanding140.52 M571.82 M
Shares Owned by Insiders0.74 %10.09 %
Shares Owned by Institutions86.17 %39.21 %
Number of Shares Shorted3.27 M4.71 M
Price to Earning5.75 X28.72 X
Price to Book1.88 X9.51 X
Price to Sales0.21 X11.42 X
Revenue62.07 B9.43 B
Gross Profit3.57 B27.38 B
EBITDA2.83 B3.9 B
Net Income1.91 B570.98 M
Cash and Equivalents650 M2.7 B
Cash per Share4.28 X5.01 X
Total Debt7.42 B5.32 B
Debt to Equity0.81 %48.70 %
Current Ratio1.51 X2.16 X
Book Value Per Share48.46 X1.93 K
Cash Flow from Operations(4.56 B)971.22 M
Short Ratio1.78 X4.00 X
Earnings Per Share15.88 X3.12 X
Price to Earnings To Growth0.63 X4.89 X
Number of Employees22 K18.84 K
Beta0.54-0.15
Market Capitalization12.82 B19.03 B
Total Asset17.91 B29.47 B
Retained Earnings7.41 B9.33 B
Working Capital3.58 B1.48 B
Current Asset10.92 B9.34 B
   Acquisition by Michael Kobori of tradable shares of Bunge subject to Rule 16b-3 [view details]

About Bunge Buy or Sell Advice

When is the right time to buy or sell Bunge? Buying financial instruments such as Bunge Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Bunge investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets10.25 B16.18 B16.46 B14.39 B
Total Assets18.32 B23.66 B23.82 B21.8 B

Use Investing Ideas to Build Portfolios

In addition to having Bunge in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Health Management
Health Management Theme
Major hospitals and healthcare providers. The Health Management theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Health Management Theme or any other thematic opportunities.
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Continue to Bunge Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Bunge information on this page should be used as a complementary analysis to other Bunge's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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Is Bunge's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bunge. If investors know Bunge will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bunge listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.19
Market Capitalization
13.8 B
Quarterly Revenue Growth YOY
0.23
Return On Assets
0.0565
Return On Equity
0.24
The market value of Bunge is measured differently than its book value, which is the value of Bunge that is recorded on the company's balance sheet. Investors also form their own opinion of Bunge's value that differs from its market value or its book value, called intrinsic value, which is Bunge's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bunge's market value can be influenced by many factors that don't directly affect Bunge's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bunge's value and its price as these two are different measures arrived at by different means. Investors typically determine Bunge value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bunge's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.