Corn Products International - Value
01 Noviembre 2011 - 6:00PM
Zacks
Looking for a food play?
Corn Products International (CPO)
is expected to grow earnings by the double digits for the second
year in a row in 2011 despite challenging macroeconomic conditions.
Sales rose 60% in the third quarter. This Zacks #1 Rank (strong
buy) is also a value, with a forward P/E of just 10.3.
Corn Products is the largest producer of dextrose
in the world and manufactures starches, high fructose corn syrups
and glucose.
The company provides a variety of ingredients to
customers in 60 industries including food, beverages,
pharmaceuticals, animal feed, corrugating, paper and textiles in 50
countries around the world.
Corn Products Beat By 9% in the Third
Quarter
On Oct 27, Corn Products reported its third quarter
results and surprised on the Zacks Consensus for the 3rd time in
the last 4 quarters.
Earnings per share were $1.20 compared to the
consensus of $1.10. That is a jump of 48% versus last year's 81
cents per share.
Sales jumped to $1.6 billion from $1.02 billion a
year ago. Sales were up in all of the company's geographic
regions.
Europe, Middle East and Africa led for the quarter
with sales jumping 128%. It was helped by the National Starch
acquisition.
North America and South America are its 2 largest
markets and both saw sales jump 54% and 33%, respectively. Exports
to Mexico continue to be strong. South America also continues to
have strong food, beverage and brewing demand.
The company has also been able to cover higher
input costs by raising prices.
Raised the Lower End of Its Guidance
Range
With another strong quarter behind it, Corn
Products raised the lower end of its guidance range for 2011 to
between $4.62 and $4.72.
It expects sales to exceed $6 billion for the
year.
Zacks Consensus Estimates Rise
Analysts liked the bullish outlook. 7 out of 7
estimates for 2011 have risen since the earnings announcement. That
has pushed up the Zacks Consensus to $4.69 from $4.51.
That is earnings growth of 45%. The company made
just $3.24 in 2010.
The growth is expected to slow in 2012 to just
8.3%. But 7 estimates have also moved higher for 2012 in the last
week which has pushed up the Zacks Consensus Estimate to $5.08 from
$4.97.
Great Recession Rally Is Over
Shares have been on a tremendous run since 2009.
But this summer, the rally pattern finally broke as stocks sold
off.
Corn Products remains a value stock however.
In addition to a P/E under 15, which is the cut-off
I use for value, it also has a price-to-book ratio of 1.8. A P/B
under 3.0 usually indicates value.
It also has a price-to-sales ratio of only 0.6. A
P/S under 1.0 usually means a company is undervalued.
Corn Products has growth and exposure to hot
emerging market economies. This is one value stock to keep an eye
on.
Tracey Ryniec is the Value Stock Strategist for
Zacks.com. She is also the Editor of the Turnaround Trader and
Insider Trader services. You can follow her at
traceyryniec.
CORN PROD INTL (CPO): Free Stock Analysis Report
Zacks Investment Research
Corn Products (NYSE:CPO)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Corn Products (NYSE:CPO)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024