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Highlights:
- Archer-Daniels-Midland Company (NYSE:ADM) stock grew by 20.79% YTD.
- Corteva, Inc. (NYSE:CTVA) stock has a P/E ratio of 23.93.
- CF Industries Holdings, Inc. (NYSE:CF) pays an annualized dividend of US$1.60.
Agriculture is a critical part of the economy. Although weather, political strife, and macroeconomic issues can affect its performance, the agricultural sector never goes out of demand because it provides essential commodities like food. The industry is engaged in harvesting crops, manufacturing farm machinery and equipment, fertilizers, etc.
Here we discuss five agriculture stocks that gave inflation-beating returns over the past year.
Video: What is the Future of Horticulture? | Expert talks with Florian Richter, Founder at Muddy Machines
Archer-Daniels-Midland Company (NYSE:ADM)
Closing price on June 13, 2022: US$82.01
Market Capitalization: US$46.15 billion
Archer-Daniels-Midland is an agriculture company specializing in processing oilseeds, corn, wheat, and other agricultural commodities. It is based in Chicago, Illinois. It also owns a network of logistical assets to store and transport crops across the world.
For the quarter ended March 31, 2022, the company reported a revenue of US$23.65 billion compared to US$18.89 billion in the same quarter a year ago. Its net income came in at US$1.05 billion or US$1.86 per share diluted compared to US$0.689 billion or US$1.22 per share diluted in the March quarter of the previous year.
ADM traded in the range of US$98.88 to US$56.91 in the last 52 weeks. The stock has a P/E ratio of 15.1 and a forward P/E for one year of 12.96. Its dividend yield is 1.89%, and the annualized dividend is US$1.60.
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Corteva, Inc. (NYSE:CTVA)
Closing price on June 13, 2022: US$56.24
Market Capitalization: US$40.7 billion
Corteva develops seed and crop chemical products. Its seeds segment generates roughly half its total profits, and the balance comes from crop protection chemicals. The company is based in Wilmington, Delaware.
For the quarter ended March 31, 2022, it generated net sales of US$4.6 billion compared to US$4.18 billion in the same quarter of the previous year. The company’s net income was US$567 million or US$0.78 per diluted share versus US$603 million or US$0.80 per diluted share a year ago.
CTVA stock traded in the range of US$64.03 to US$40.60 in the last 52 weeks. The stock has a P/E ratio of 23.93 ad the forward P/E for one year of 22.23. Its dividend yield is 0.97%, and the annualized dividend is US$0.56.
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Mosaic Company (NYSE:MOS)
Closing price on June 13, 2022: US$51.43
Market Capitalization: US$18.6 billion
Tampa, Florida-based Mosaic is a leading producer of crop nutrients phosphate and potash. Its assets include phosphate rock mines in Florida, Louisiana, Brazil and Peru and potash mines in Saskatchewan, Brazil, and New Mexico.
Mosaic reported net sales of US$3.92 billion for the first quarter ended March 31, 2022, a 71% increase YoY, compared to US$2.29 billion a year ago. Its net income came in at US$1.18 billion or US$3.19 per diluted share versus US$0.156 billion or US$0.41 per diluted share in the March quarter of 2021.
It traded in the range of US$79.28 to US$28.26 in one year. The stock has a P/E ratio of 7.28 and a forward P/E for one year of 3.70. Its dividend yield is 1.12%, and the annualized dividend is US$0.60.
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CF Industries Holdings, Inc. (NYSE:CF)
Closing price on June 13, 2022: US$86.39
Market Capitalization: US$18.02 billion
CF Industries produces and distributes nitrogen fertilizers. The Deerfield, Illinois-based company makes nitrogen from natural gas, making it one of the world’s low-cost nitrogen producers.
It booked a net sale of US$2.87 billion for the quarter ended March 31, 2022, compared to US$1.05 billion in the March quarter of 2021. The net income attributable to the company came in at US$883 million, a 485% up YoY, compared to US$151 million in the previous year's quarter. The EPS diluted were US$4.21 and US$0.70 for the March quarter of 2022 and 2021, respectively.
CF stock traded in the range of US$113.48 to US$43.19 in the last 52 weeks. The stock has a P/E ratio of 11.13 and a forward P/E for one year of 4.56. Its dividend yield is 1.82%, and the annualized dividend is US$1.60.
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Bunge Limited (NYSE:BG)
Closing price on June 13, 2022: US$102.44
Market Capitalization: US$15.54 billion
St. Louis, Missouri-based Bunge is a food company operating a farm-to-consumer food chain. It is a leading oilseed processor for packaged vegetable oils and other food products.
For the quarter ended March 31, 2022, its net income was US$688 million or US$4.48 per diluted share on a net sale of US$15.88 billion. The net income was US$823 million or US$5.52 per diluted share in the March quarter of 2021 on a net sale of US$12.6 billion.
It traded in the range of US$128.40 to US$71.73 in the last 52 weeks. The stock has a P/E ratio of 8.1 and the forward P/E for one year of 7.96. Its dividend yield is 1.96%, and the annualized dividend is US$2.50.
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Bottom line:
Despite the persisting rise in inflation led by food prices, the sector will likely stay stable compared to technology or industrial segments, sensitive to economic growth. However, investors should carefully evaluate the stocks before investing in them.
