By analyzing existing technical and fundamental indicators between Bunge and Haier, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Haier with a short position in Bunge. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bunge has an asset utilization ratio of 248.68 percent. This implies that the company is making $2.49 for each dollar of assets. An increasing asset utilization means that Bunge Limited is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Bunge or NaturalShrimp is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Bunge dividends
A dividend is the distribution of a portion of Bunge earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Bunge dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Bunge one year expected dividend income is about USD1.67 per share.
The current
Dividends Paid is estimated to decrease to about 221.6
M. The current
Dividend Yield is estimated to decrease to 0.02.
Investing in dividend-paying stocks, such as Bunge Limited is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Bunge must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Bunge. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Bunge's Liquidity
Bunge
financial leverage refers to using borrowed capital as a funding source to finance Bunge Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bunge financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bunge's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bunge's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Bunge's total debt and its cash.
Correlation Between Bunge and NaturalShrimp
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Bunge together with similar or unrelated positions with a negative correlation. For example, you can also add NaturalShrimp to your portfolio. If NaturalShrimp is not perfectly correlated to Bunge it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Bunge, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Bunge and NaturalShrimp in your portfolio? Please note if you are using this as a pair-trade strategy between Bunge and NaturalShrimp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BG and SHMP for more information.
What is driving Bunge Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Bunge revenue. Based on the latest financial disclosure, Bunge Limited reported 59.15
B of revenue. This is 298.2% higher than that of the Food Products sector and significantly higher than that of the
Consumer Staples industry. The revenue for all United States stocks is significantly lower than that of Bunge Limited. As for Haier Smart we see revenue of 227.56
B, which is much higher than that of the Consumer Staples
| Bunge | 59.15 Billion |
| Sector | 9.43 Billion |
| Haier | 227.56 Billion |
Bunge is epected to finish above USD97 in March
The downside deviation is down to 2.13 as of today. Bunge Limited currently demonstrates below-average downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of -0.06. However, we advise investors to further question Bunge Limited expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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 bullish 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.
While other companies in the farm products industry are either recovering or due for a correction, Bunge may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Bunge as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bunge.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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