Is it a value stock or a value trap though?
The main problem that has emerged recently is their high debt levels (incl. high working capital reqs.) which are significantly worsened in a soft worldwide agrochems market.
China is a big landmine, with excess capacity at home, they are dumping.
Demand may revive, but what about china?
Exclusion from index is also a bad thing.
Overall, it does not look like a good thing to buy or hold right now. The long term growth will also be slower this decade compared to last (perhaps high single digit). There is no visibility on when rate cuts will begin worldwide also.
IMHO this is not yet peak pessimism and more pain can be expected.
DISCLOSURE – just a lay person, i am also known to be an idiot, so …
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