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Bunge Global (BG)
NYSE:BG
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Bunge Global
(NYSE:BG)
67Neutral
Positive Factors
Earnings Resilience
Despite a tough ag environment, BG’s earnings remain resilient, with expectations of EPS over $9 this year and next.
Valuation
Valuation increasingly attractive, reiterate Buy.
Negative Factors
Acquisition Delays
The Viterra deal is expected to close later than initially anticipated, adding to investor’s concerns.
Earnings 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
$10.61B
Dividend Yield3.5%
Average Volume (3M)1.85M
Price to Earnings (P/E)9.9
Beta (1Y)0.15
Revenue Growth-10.78%
EPS Growth-45.77%
CountryUS
Employees23,000
SectorBasic Materials
Sector Strength62
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)1.81
Shares Outstanding133,968,050
10 Day Avg. Volume1,327,988
30 Day Avg. Volume1,848,314
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.42
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$84.50Price Target Upside8.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
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, the declining revenue and free cash flow growth signal potential challenges that need addressing. The company's reduced leverage and strong equity position provide a buffer against market volatility. Continued focus on revenue growth and cash flow management will be crucial for sustaining long-term financial health.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 |
| 1.83B | 3.42B | 2.40B | 2.76B | 1.66B | EBITDA |
| 2.46B | 4.02B | 2.88B | 3.23B | 2.11B | 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
Neutral
78.16
Price Trends
75.76
Positive
75.95
Positive
84.77
Negative
Market Momentum
0.99
Positive
52.28
Neutral
30.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BG, the sentiment is Neutral. The current price of 78.16 is above the 20-day moving average (MA) of 77.78, above the 50-day MA of 75.76, and below the 200-day MA of 84.77, indicating a neutral trend. The MACD of 0.99 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BG.
Bunge Global Risk Analysis
Bunge Global disclosed 41 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $4.95B | 4.59 | 48.27% | 7.30% | 60.00% | 259.01% | |
76 Outperform | $1.60B | 10.92 | 7.51% | 3.14% | -0.64% | ― | |
72 Outperform | $9.03B | ― | ― | ― | ― | ||
69 Neutral | $19.47B | 21.36 | 5.01% | 3.53% | 1.39% | ― | |
69 Neutral | $22.98B | 13.11 | 6.02% | 4.23% | -8.61% | ― | |
67 Neutral | $10.61B | 9.91 | 10.95% | 3.50% | -10.78% | -45.77% | |
49 Neutral | $1.96B | -1.23 | -21.20% | 3.72% | 0.88% | -29.24% |
* Basic Materials Sector Average
Performance Comparison
BG
Bunge Global
78.16
-23.02
-22.75%
ADM
Archer Daniels Midland
48.32
-11.02
-18.57%
CALM
Cal-Maine Foods
96.87
43.76
82.40%
FDP
Fresh Del Monte Produce
33.35
9.88
42.10%
TSN
Tyson Foods
55.75
-1.27
-2.23%
SFD
Smithfield Foods
22.27
2.04
10.08%
Bunge Global Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.20%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
While Bunge demonstrated resilience and strategic alignment through divestitures and partnerships, the earnings call highlighted challenges such as declines in adjusted EBIT and EPS, regulatory delays, and biofuel policy uncertainties. The achievements in financial positioning and strategic initiatives were somewhat offset by these challenges.Q1-2025 Updates
Positive Updates
Exceeding Expectations in Q1 2025
First quarter exceeded expectations, driven by pull forward of activities from Q2 into Q1, and shifts in trade dynamics. Adjusted EPS was $1.81 compared to $3.04 in the prior year.
Strategic Divestitures and Partnerships
Sale of European Margarines and Spreads business and North American corn milling business. Partnership with Repsol to incorporate intermediate novel crops in renewable fuels in Europe.
Strong Financial Position
Generated $392 million of adjusted funds from operations with $338 million of discretionary cash flow available. Adjusted leverage ratio at 0.6 times and liquidity with committed credit facilities of approximately $8.7 billion.
Resilient Business Model
Confidence in the strategic merits of the planned combination with Viterra and expected approval soon. Commitment to global supply chains and value creation for customers.
Negative Updates
Decline in Adjusted EBIT
Adjusted segment EBIT was $406 million compared to $719 million last year, indicating challenges in the processing segment, particularly in North America, Argentina, and European soft seeds.
Lower Adjusted EPS
Adjusted EPS decreased to $1.81 in the first quarter from $3.04 in the prior year, highlighting a more balanced global supply and demand environment.
Challenges in Regulatory Approvals
Regulatory approval delays for the Vitara transaction and termination of the definitive share purchase agreement with CJ Selecta.
Biofuel Policy Uncertainty
Refined & Specialty Oils results down, driven by a more balanced supply and demand environment and uncertainty in U.S. biofuel policies.
Company Guidance
During the Bunge Global SA First Quarter 2025 earnings call, the company reaffirmed its full-year 2025 adjusted EPS guidance of approximately $7.75, despite a dynamic market environment. The first quarter exceeded expectations, with reported EPS of $1.48 and adjusted EPS of $1.81, although lower than the prior year's $3.04. Adjusted segment EBIT was $406 million, a decrease from $719 million in the previous year. The call highlighted a strong performance in Brazil, Europe, and Asia soy crush value chains, offset by lower results in North America, Argentina, and European soft seeds. Bunge emphasized continued uncertainty in U.S. biofuel policies and regulatory changes, which influenced trade dynamics, but it expects a more balanced supply and demand environment going forward. The company also provided metrics on capital allocation, including $392 million of adjusted funds from operations in Q1, and emphasized its robust liquidity position with $8.7 billion in unused credit facilities.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.