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1. Company Snapshot

1.a. Company Description

Bunge Limited operates as an agribusiness and food company worldwide.It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy.The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains primarily wheat and corn; and processes oilseeds into vegetable oils and protein meals.


This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies; and for industrial and biodiesel production applications.The Refined and Specialty Oils segment sells packaged and bulk oils and fats that include cooking oils, shortenings, margarines, mayonnaise, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers.The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; quinoas and millets; die-cut pellets; and non-GMO products.


The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse.Bunge Limited was founded in 1818 and is headquartered in St. Louis, Missouri.

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1.b. Last Insights on BG

Bunge Global's recent performance is driven by strong Q4 earnings, beating estimates with $1.99 per share, and revenue growth expectations. The company's Viterra integration is expected to boost sales by 62.5%. Additionally, Bunge completed its acquisition of IFF's soy protein concentrate, lecithin, and crush business, expanding its capabilities. The company also outlined a strategic growth and value creation plan at its 2026 Investor Day, targeting $15 mid-cycle EPS by 2030. Institutional investors, including AE Wealth Management and SG Americas Securities, have increased their positions in the company.

1.c. Company Highlights

2. Bunge's Q4 Earnings Beat Expectations

Bunge's reported fourth-quarter earnings per share was $0.49, with adjusted EPS coming in at $1.99, beating estimates of $1.82. The company's adjusted segment earnings before interest and taxes (EBIT) was $756 million, up from $546 million last year. Revenue growth was driven by strong execution and the company's expanded footprint and capabilities. The global market for meal has been better than expected, driven by growth in protein demand, particularly in chicken.

Publication Date: Feb -16

📋 Highlights
  • Viterra Integration Synergies: Achieved $190M realized synergies in 2026, ahead of schedule, with $50M net tax benefits boosting adjusted EPS to $1.99 (vs $1.32 in 2024).
  • 2026 Guidance: Adjusted EPS forecast at $7.5–$8; EBIT guidance of $1.5–1.7B; capex of $1.5B–$1.7B and net interest expense of $575M–$620M.
  • Earnings Cadence: Projected 30-70 Q1/Q2 vs Q3/Q4 split, with Q1 EPS at $0.80, Q2 at $1.10, and $2.70 in H2, driven by RVO policy timing delays.
  • Segment Performance: Q4 segment EBIT of $756M (vs $546M in 2024), with soft crush and soy processing contributing 75% of EBIT (2026 guidance).
  • RVO Policy Impact: Uncertainty around U.S. RVO tailwinds, with management expecting finalization near 5.2–5.6B gallons/year, driving margin improvements post-implementation.

Segment Performance

The company's segments performed well, with higher results driven by strong execution and the expanded footprint. The integration work with Viterra has been exceptional, unlocking synergies in origination, merchandising, processing, and distribution. The company is seeing similar opportunities to transform earnings power through internal operations, with a focus on aligning rewards programs, staying focused on customers, and developing a risk culture.

Guidance and Outlook

Bunge forecasts full-year 2026 adjusted EPS in the range of $7.5 to $8. The company expects a relatively modest amount of synergy on the commercial side, with $190 million in realized synergies in 2026, ahead of schedule. The guidance implies a 30-70 split in earnings cadence for the year, with a lighter first half. The company's capital expenditures are expected to be in the range of $1.5 billion to $1.7 billion, with a focus on sustaining CapEx and growth investments.

Valuation

Using the current price, the company's 'P/E Ratio' is 29.28, 'P/B Ratio' is 1.38, and 'P/S Ratio' is 0.34. The 'EV/EBITDA' ratio is 16.03. These metrics suggest that the market is pricing in a certain level of growth, with analysts estimating next year's revenue growth at 3.3%. The 'ROE' is 5.98%, indicating a relatively stable return on equity.

Biofuel Policy and Demand

The company is optimistic about the market opportunity for SAF and is working with fuel producers to participate. The RVO administration has been supportive, but the company is uncertain about the final volume. The company expects substantial pull on soybean oil from renewable diesel once the RVO is finalized. As Gregory A. Heckman stated, "We've got more demand than we did in the past, and I think that's going to drive some pretty good margins."

3. NewsRoom

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Bunge Recognized as One of the 2026 World's Most Ethical Companies®

Mar -18

Source: businesswire.com

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Bunge Global SA Announces Pricing of $1.2 Billion Senior Notes Offering

Mar -17

Source: businesswire.com

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Bunge Global SA (BG) Analyst/Investor Day Transcript

Mar -14

Source: seekingalpha.com

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Bunge Global Eyes $15 Mid-Cycle EPS By 2030 As Agriculture Giant Sets Goals

Mar -10

Source: benzinga.com

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NYSE Content Update: AT&T CEO John Stankey to Ring Bell on 150th Anniversary of First Phone Call

Mar -10

Source: prnewswire.com

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Bunge Outlines Strategic Growth and Value Creation Plan at 2026 Investor Day

Mar -10

Source: businesswire.com

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Bunge Completes Acquisition of IFF's Soy Protein Concentrate, Lecithin, and Crush Business

Mar -02

Source: businesswire.com

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High Dividend Packaged Foods: Relative Favorability

Feb -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Agribusiness

Expected Growth: 1.0%

Bunge Limited's Agribusiness segment growth of 1.0 is driven by increasing global demand for soybeans and grains, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and investments in digital technologies have contributed to its growth.

Refined and Specialty Oils

Expected Growth: 1.0%

Bunge Limited's Refined and Specialty Oils segment growth is driven by increasing demand for premium edible oils, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on product innovation, sustainability, and operational efficiency improvements contribute to its 1.0% growth rate.

Milling

Expected Growth: 1.0%

Bunge Limited's milling segment growth of 1.0 is driven by increasing demand for wheat and corn-based products, expansion into emerging markets, and strategic acquisitions. Additionally, investments in operational efficiency and product innovation have improved margins, while favorable weather conditions and government subsidies have supported crop yields.

Sugar and Bioenergy

Expected Growth: 1.0%

Bunge's Sugar and Bioenergy segment growth is driven by increasing global demand for ethanol, favorable government policies, and rising sugar prices. Additionally, the company's focus on operational efficiency, cost savings, and strategic partnerships contribute to its 1.0 growth rate.

Corporate & Other

Expected Growth: 1.0%

Bunge's Corporate & Other segment growth of 1.0% is driven by improved cost management, reduced SG&A expenses, and increased efficiency in its global operations. Additionally, the company's strategic investments in digitalization and process automation have enhanced productivity, contributing to the segment's growth.

7. Detailed Products

Soybean Crush

Bunge Limited is a leading processor of soybeans, producing soybean meal and soybean oil for use in animal feed, food products, and industrial applications.

Wheat Milling

Bunge Limited operates wheat mills that produce flour for bread, baked goods, and other food products.

Edible Oils

Bunge Limited produces edible oils such as canola oil, sunflower oil, and soybean oil for use in food products and food processing.

Sugar and Bioenergy

Bunge Limited produces sugar and ethanol from sugarcane in Brazil, used as a biofuel and in food products.

Fertilizers

Bunge Limited produces fertilizers such as nitrogen, phosphorus, and potassium-based products for agricultural use.

Grain Trading

Bunge Limited trades grains such as corn, wheat, and soybeans, connecting farmers with food and feed manufacturers.

8. Bunge Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bunge Limited operates in the agribusiness and food industry, where substitutes are available but not easily accessible. The company's products are largely commoditized, but its strong brand recognition and distribution network provide some protection.

Bargaining Power Of Customers

Bunge Limited's customers are largely comprised of large food manufacturers and retailers, who have some bargaining power. However, the company's diversified customer base and strong relationships mitigate this power.

Bargaining Power Of Suppliers

Bunge Limited's suppliers are primarily farmers and producers of agricultural commodities. While the company has some bargaining power due to its scale, suppliers also have some power due to the fragmented nature of the agricultural industry.

Threat Of New Entrants

The agribusiness and food industry has high barriers to entry, including significant capital requirements and complex supply chains. This limits the threat of new entrants to Bunge Limited's business.

Intensity Of Rivalry

The agribusiness and food industry is highly competitive, with several large players competing for market share. Bunge Limited faces intense rivalry from companies such as Archer Daniels Midland, Cargill, and Louis Dreyfus Company.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.35%
Debt Cost 7.19%
Equity Weight 67.65%
Equity Cost 7.19%
WACC 7.19%
Leverage 47.83%

11. Quality Control: Bunge Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

118.15$

Current Price

118.15$

Potential

-0.00%

Expected Cash-Flows