Mosaic is a producer and marketer of concentrated phosphate and potash crop nutrients. Co. mines phosphate rock in Florida and processes rock into finished phosphate products at facilities in Florida and Louisiana; and mines potash in Saskatchewan, New Mexico and Michigan. Co. also has other production, blending or distribution operations in Brazil, China, India, Argentina, and Chile, and an investment in a phosphate rock mine in the Bayovar region in Peru. Co. has two segments: Phosphates, which sells phosphate-based crop nutrients and animal feed ingredients; and Potash, which sells potash, mainly as fertilizer, but also for use in industrial applications, and as animal feed ingredients.
in our opinion Mosaic does not have a moat. The company relies on superior execution for success.
The Phosphates line finished the year with robust global shipments, as prices strengthened. The Potash business also posted good results. The solid performance ought to continue. We think demand for fertilizer will probably increase somewhat over the next couple of years. The acquisition late last year of Archer Daniels Midland's fertilizer distribution business (located in Brazil and Paraguay) has increased Mosaic's distribution capacity in South America and should considerably accelerate the company's growth plans there, too. Mosaic has been active in buying back stock in recent times. The company spent roughly $2.8 billion on this front during 2014. Stock repurchases should continue to benefit earnings per share going forward
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Leading producer of concentrated phosphate and potash crop nutrients
Geographically diversified revenue base offsetting concentration risk
Limited number of key production and distribution facilities
Non-ownership of controlling equity interest in non-consolidated companies
Volatile raw material and energy prices may affect Mosaic’s gross margins and profitability
Adverse weather conditions could affect facilities and supply chain
Inflow of brine and water affecting the operating activities at Esterhazy
Acquisition of CF’s phosphates business would expand Mosaic’s capacity
Positive outlook of global fertilizer market could drive the company's growth
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