Corn Products International-value

Foods and food ingredients are suddenly in the spotlight. Corn Products International (CPO) has seen sales rebound dramatically from the depths of the recession. Earnings are expected to grow by 25% in 2011. This Zacks # 1 Rank (strong buy) is the largest manufacturer of dextrose in the world and produces starches, corn syrup, high fructose and glucose. The company provides a variety of ingredients for customers in 60 industries including food, beverages, pharmaceuticals, feed, corrugating, paper and textiles in 50 countries around the world. Corn Products places Big Beat in the fourth quarter of 2010 Feb 17, corn products reports fourth quarter results and easily surprised Zacks consensus estimate of 44%. Earnings per share were $ 1.05 compared with the consent of 73 cents. The company has just 74 cents a year ago. National starch acquisition added 23 cents per share in the quarter. Full year EPS also rose to $ 3.24 from $ 2.01, excluding costs of national starch acquisition and integration. Sales in the fourth quarter jumped 47% to $ 1.41 billion from 959 million with $ 416 million from higher volumes, including 351 million dollars of sales from national starch. The company was able to handle the higher input costs due to increased volumes in all regions. North America continues to be the largest market. Sales increased 33% to 742 million on stronger volumes of 203 million, including $ 168 million from national starch. South America sales, the second largest market, rose by 23%. Asia grew 119%. Meanwhile, Europe had only national starch sales, so there was no year-over-year comparison. Orientation 2011 The company is confident in 2011, which will be his first full year with the integrated national starch. Earnings per share are expected in the range of $ 3.60 for $ 3.90, but which also includes the cost of acquisition. ascent of Zacks consensus estimates Analysts have been moving their higher estimates based on results for the fourth quarter and full year Outlook. They have also been excluded expenditure of national starch, which means that the predictions are coming over guidance range of the company. 5 estimates moved higher for 2011 last week that drove the Zacks consensus estimate of up to $ 4.06 2011 from $ 3.65 per diluted share. Value in equities CPO Corn products has attractive valuations. It is trading just 12 x forward estimates that is below the average S & P 500 x 14.5. It also has a price-to-book only 1.9, even within the parameters of value below 3.0. Ratio of price-to-business sales of 0.9 also indicates the value. Also, the 1-year return on equity is a strong 13.2%. CPO 1 year Highs Actions have pulled back from 1 year highs the recent market sell-off. But the chart 6 months is still quite impressive. Tracey Ryniec is the strategist of Stock value for Zacks.com. She is also the Editor in charge of service market-beating Zacks value Trader. You can follow her at twitter.com/traceyryniec.
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