Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agriculture and food company Bunge
With that in mind, let's take a closer look at Bunge's business and see what CAPS investors are saying about the stock right now.
Bunge facts
| Headquarters (Founded) | White Plains, N.Y. (1818) |
| Market Cap | $10.76 billion |
| Industry | Agricultural products |
| Trailing-12-Month Revenue | $45.71 billion |
| Management | Chairman/CEO Alberto Weisser CFO Andrew Burke |
| Return on Equity (Average, Past 3 Years) | 13.4% |
| Cash / Debt | $617 million / $4.88 billion |
| Dividend Yield | 1.2% |
| Competitors |
Archer Daniels Midland |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 803 members who have rated Bunge believe the stock will outperform the S&P 500 going forward. These bulls include YoungFool37 and MrCainThaler.
Late last year, YoungFool37 tapped Bunge as a scrumptious selection: "Nothing is quite as indispensable to the consumer as food. This may not be a high-growth choice, but it is strong by the numbers and undervalued."
In fact, Bunge currently sports a particularly paltry P/E of 4.9. That's a clear discount to main rival Archer Daniels Midland (12.4), as well as other agricultural plays like Monsanto
CAPS member MrCainThaler elaborates on the bull case:
[Bunge] is an agricultural stock with nice exposure to the commodity spikes which began in late 2010. They have a storage and distribution network which means they will be able to take immediate advantage of the new, higher prices, which will likely only appreciate further with the destablization of the middle east and extreme weather conditions accross North America.
Incidentally, the stock has other advantages, such as coming off a shipping and process plant freeze in Argentina (recently intervened on by the government) and large exposure to sugar cane plantations and bio-fuel which grant them large subsidized revenue by the Brazilian government.
Fundamentals are solid, with a value of $75-77 dollars, trading at a discount, and stable and growing earnings.
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