Strengths and weaknesses analysis / Fundamental analysis:
Strengths:
- Syngenta is a powerhouse in terms of consistent innovation and introducing new products, hence it has a broad based product pipeline,
- Syngenta is extremely well financed, the debt/capital ratio is about 0.3 times,
- The company has an efficient approach to marketing its products in emerging regions,
- Syngenta has diversified its R&D into the vegetable seed market. Among other things, the company is addressing requests for more high-value vegetables from overweight people trying to lose weight,
- Operating ratios are well ahead of the average competitor.
Weaknesses:
- The company’s principal risks are lower crop prices,
- Syngenta is exposed to very high standards in the production of pesticides and other crop-protection products,
- Safety concerns around genetically modified and biotechnology products resurface continuously, potentially threatening the viability of the company’s business approach,
- The company has failed to enter the more lucrative US market in an efficient manner.
Company profile, investment opportunity and asset management integration:
Metric Rating Operational risks: Average Expected growth: Well above average Long term value creation: Outstanding Positive competitive advantage: Positive Management excellence: Positive Financial strength: Well above average Investment orientation: Group Best-in-Class:
Emerging Market Exposure, Swiss Premium
Selection, Growth Model, Agrochemicals