MON: Monsanto Co Stock Analysis

Monsanto Company along with subsidiaries provides agricultural products for the farming
community. The company also provides seeds, biotech trait products, precision agriculture tools
and herbicides for the farming community.
Two segments form the chief operations of this company namely Seed and Genomics and
Agricultural Productivity. Via the Seeds and Genomics segment, seed brands such as DEKALB,
Deltapine and Asgrow.
You can develop biotechnology traits for assisting farmers in decisions. Via the Agricultural
Productivity segment, company manufactures roundup brand herbicides as well as other
herbicides and lawn as well as garden herbicide products for the residential market.
Analysis of Results
For FY2016, EPS guidance improved to US$4.48 from $3.72 indicating ongoing EPS and free
cash flow. The company delivered on balanced capital allocations commitment in FY2016 with
closure of US $3B ASR, according to the company press release.
As there is increased demand for fresh solutions, Intacta RR2 PRO soybeans track 35 million
acres across S.America for FY2016. Numerous varieties positioned for 3 million US Soybean
acres to 35 million acres across S. America in the fiscal indicate vanes for growth.
Key variables and growth drives indicate outlook and opportunity for mid teens baseline CAGR
in EPS from company's midpoint in outlook from FY2016 to FY2019.
Monsanto Co is positioned to provide cutting edge solutions as innovation flourishes. The
company also executes important initiatives within its basic business, specifically in the area of
global corn hybrid portfolio introductions, soybean adoption and launch of new varieties as well
as continued progress within the platform for digital agricultural initiatives.
The estimate for fiscal 2016 EPS has increased while ongoing EPS and free cash flow persist in
recently revised guidance. Chairman and CEO Hugh Grant has said that Monsanto continues to
have "a strong growth plan, backed by our commitment to delivering value to our customers
through the industry's most proven integrated pipeline," according to the company press release.
Growth plans are increasing. In the United States, Monsanto's year one to three hybrids are
tracking 50-60 percent of the portfolio.
Company's response to competitor discounting and free seed actions have worked wonders.
Monsanto is looking to hold or grow leading share position while holding onto premium pricing
of corn product performance.

Monsanto is also expanding in Brazil to overcome currency weakness in the market while in
Argentina, company's share remains more than 50 percent in a region where acres have fallen 1520 percent. Across Europe and South Africa, company will hold or grow share in region of
falling corn acres.
Conclusion
Monsanto is expanding across different areas and countries. This is a company with a strong
growth potential. This has the capacity to impact the future of the investor returns and this too
can make a difference to the stability of income generated from these stocks.
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