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Sugar Substitutes
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Sugar Highlights
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Commodity prices change when there are unexpected changes to supply and demand of the target commodity. WikiWealth tries to predict these unexpected changes by examining the companies, which supply and demand the commodity (See Fundamental Commodity Analysis). When demand potential is greater then supply potential, then prices will increase; the opposite is also true. WikiWealth's Main Street Analysis captures - along with user help - the impact of supply and demand changes by analyzing the commodity's importance. In general, the more important the commodity, the faster the price will increase when commodity demand increases. A "Buy" rating from both approaches mean the commodity has high potential to increase in value.
Sugar Summary
Sugar Commodity Analysis ► (edit / improve) Sugar, this sweet flavored substance, is mostly derived from sugar cane and sugar beet. Commodity Analysis: Sugar is rated a Hold. Sugar demanders are fairly valued, while sugar suppliers have low potential to increase in value. Investor Survey: Sugar’s long term growth potential is moderately favorable due to high scores on SWOT analysis. SWOT Analysis: Strength: Sugar is traded all over the world and is a necessary ingredient in many products; Weakness: excess consumption of sugar could lead to health problems; Opportunity to grow: sugar’s widespread use, especially in drinks and ice cream, could aid growth in the future; Threats to growth: monsoons could affect sugar, because both rely on tropical weather to grow. Profit Conclusion: The commodity analysis hold rating indicates that sugar should stay the same price over the short term, whereas a moderately favorable investor survey means sugar may increase in price over the long term.
Investment Impacts (help)
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency Analysis: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade Analysis: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity Analysis: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Profit Conclusion: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
India Country Analysis ► (edit / improve) India (INR) has a highly regulated economy; however, recent liberalization has transformed the economy towards a capitalist, market-based system. Currency Analysis: India’s currency is fairly valued with very low investment flow potential combined with very high purchase price parity potential. Investor Survey: India’s economic environment is unfavorable for long term economic growth due to low scores on economic freedom, transparency, economic diversity, and the SWOT analysis. Trade Analysis: Belgium, Pakistan, the UK, Japan, and the US are the top export partners. Commodity Analysis: India produces a significant amount of staples for domestic use and needs to import energy. SWOT Analysis: The leading Indian strength is their supply of natural resources, while the main weakness is a lack of infrastructure. Profit Conclusion: A fairly-valued currency, very low investment flow potential and an unfavorable business environment leads to a negative outlook for Indian investments.
Industry Investment Impact
Staples Industry Analysis ► (edit / improve) Description: The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Valuation Analysis: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with a ~ 30 percent potential. The Main Street analysis says a Buy with SWOT strengths much great than weaknesses and SWOT opportunities roughly the same as threats. Trade Analysis: Some of the main trade hubs include Argentina, Brazil, USA, Colombia, Greece, Italy, Turkey, and Indonesia, while the main staple commodities include chicken, corn, milk, oats, rice, sugar, wheat. Profit Conclusion: The consumer staple industry tends to be less sensitive to economic cycles. Look for undervalued staple investments at any time in the business cycle, and especially during the late stages of a bull markets when investors become more defensive. The global economy is currently in a recession, therefore, investors are rotating money out of consumer staples and into faster growth industries.
- Sugar is a staple food additive in many countries. The growth of sugar importing countries will affect the price of sugar.
Importance of the Industry Analysis? WikiWealth's industry investment analysis evaluates the major industry characteristics that affect investments within that industry. Company specific factors drive the performance of individual companies, but macro-economic industry factors can affect the performance of entire groups of stocks.
Warren Buffett Quote: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."
No matter the quality of your business, industry economics is an important factor in any investment decision.
Edit / Improve Option?
WikiWealth supplies the tools to create the highest quality analysis. However, we rely on users to continuously edit and improve this analysis. More minds working on a problem generates better ideas. WikiWealth professionals happily review each edit to ensure consistency and quality. Find an area to improve, click the "improve - edit" link, make your change, then press "SAVE."
Value to Users?
A professional industry analysis can cost between $150 to $15,000. WikiWealth's industry analysis is free and open to "improve / edit." WikiWealth has a range of skills and experience to complete any industry analysis or related financial request. See our professional services for more information.
Experiment Analysis Mode?
Useful for experimenting with the analysis without permanently changing the results for others. Read More: Calculator Mode. See our How To video: Experimental Mode or read our calculator mode help section. Changes are not permanent.
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The wiki-platform allows easy edits of information and content by anyone. The experimental mode is free and open to manipulate by anyone.
WikiWealth.com Industry Description: The materials industry includes companies whose sales originate from the mining, acquisition and sale of physical substances for manufacturing-related purposes. Read More.
WikiWealth.com Profit Analysis: The best way to profit from material industry stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, material industry stocks tend to outperform the general stock market, because consumers and businesses must increase their inventories quickly to meet demand for manufactured goods. Consumers and business delayed purchases on items they wanted, but resisted buying during tougher economic times. Eventually, material company investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell material stocks, because they are likely to decrease in price the fastest. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. Click for more information: stock research ratings.
Inflation Hedge: Changes in commodity prices affect material industry investments. When commodity prices are high due to increased demand or lower supply, material stocks increase, because demand for their goods also increases. Inflation occurs when the price of goods and services increases. The price of materials are generally the first inputs into the production of goods, so changes in material prices directly affect the cost of products, which is measured by inflation. Therefore, a good hedge against inflation is to own material stock investments. When inflation increases, so do the profits of material companies, which may have directly contributed to the increase in prices.
WikiWealth.com Industry Analysis: During economic recessions, consumers tend to cut back on spending to save money. Businesses tend to cut back on investments. Industrial companies make the products bought by consumers and businesses, but to make those products, industrial companies must obtain materials. Less spending on goods decreases material business revenue and eventually decreases stock prices. During economic recoveries, consumers and businesses spend quickly to replace or catch up with quickly increasing demand. Material companies quickly receive orders from industrial companies who need to manufacture new products to meet quickly increasing demand. Higher spending increases material business revenue and eventually increases stock prices. During a longer economic expansion, consumer and business demand increases for material companies, but at a slower pace than during the recovery stage.
1 WikiWealth.com only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
Major Sugar Producers ► Press "Edit / Improve"
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency Analysis: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade Analysis: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity Analysis: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Profit Conclusion: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
India Country Analysis ► (edit / improve) India (INR) has a highly regulated economy; however, recent liberalization has transformed the economy towards a capitalist, market-based system. Currency Analysis: India’s currency is fairly valued with very low investment flow potential combined with very high purchase price parity potential. Investor Survey: India’s economic environment is unfavorable for long term economic growth due to low scores on economic freedom, transparency, economic diversity, and the SWOT analysis. Trade Analysis: Belgium, Pakistan, the UK, Japan, and the US are the top export partners. Commodity Analysis: India produces a significant amount of staples for domestic use and needs to import energy. SWOT Analysis: The leading Indian strength is their supply of natural resources, while the main weakness is a lack of infrastructure. Profit Conclusion: A fairly-valued currency, very low investment flow potential and an unfavorable business environment leads to a negative outlook for Indian investments.
European Union Country Analysis ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. Currency Analysis: The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity analysis. Investor Survey: the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. Trade Analysis: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. Commodity Analysis: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. Profit Conclusion: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.
China Country Analysis ► (edit / improve) China (CNY) is a fast growing communist country with the largest population in the world. Currency Analysis: China’s currency is moderately undervalued. Purchase price parity shows that China’s currency is approximately 40% undervalued, however, the other three valuation approaches show that China is fairly valued. Investor Survey: China’s economic environment is very unfavorable for long term economic growth due to the lack of economic freedom, government transparency, and the SWOT analysis. Trade Analysis: Indonesia, Pakistan, Norway, Singapore, Europe, the US are the top export partners, while the leading industry is industrial goods, usually for export. Commodity Analysis: China produces a significant amount of coal for use at home. The use of coal to provide energy leads to other health related problems. SWOT Analysis: The leading Chinese strength is their cheap labor, while the main weaknesses are political risk and corruption. Renewable energy has the opportunity to propel growth, while general pollution and an aging population could slow growth rates. Profit Conclusion: An undervalued currency, average investment flow potential and an unfavorable business environment leads to a neutral outlook for Chinese investments.
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency Analysis: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies (see investment flows analysis). Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade Analysis: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity Analysis: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the housing crisis may lower growth. Profit Conclusion: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Major Sugar Consumers ► Press "Edit / Improve"
India Country Analysis ► (edit / improve) India (INR) has a highly regulated economy; however, recent liberalization has transformed the economy towards a capitalist, market-based system. Currency Analysis: India’s currency is fairly valued with very low investment flow potential combined with very high purchase price parity potential. Investor Survey: India’s economic environment is unfavorable for long term economic growth due to low scores on economic freedom, transparency, economic diversity, and the SWOT analysis. Trade Analysis: Belgium, Pakistan, the UK, Japan, and the US are the top export partners. Commodity Analysis: India produces a significant amount of staples for domestic use and needs to import energy. SWOT Analysis: The leading Indian strength is their supply of natural resources, while the main weakness is a lack of infrastructure. Profit Conclusion: A fairly-valued currency, very low investment flow potential and an unfavorable business environment leads to a negative outlook for Indian investments.
European Union Country Analysis ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. Currency Analysis: The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity analysis. Investor Survey: the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. Trade Analysis: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. Commodity Analysis: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. Profit Conclusion: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.
China Country Analysis ► (edit / improve) China (CNY) is a fast growing communist country with the largest population in the world. Currency Analysis: China’s currency is moderately undervalued. Purchase price parity shows that China’s currency is approximately 40% undervalued, however, the other three valuation approaches show that China is fairly valued. Investor Survey: China’s economic environment is very unfavorable for long term economic growth due to the lack of economic freedom, government transparency, and the SWOT analysis. Trade Analysis: Indonesia, Pakistan, Norway, Singapore, Europe, the US are the top export partners, while the leading industry is industrial goods, usually for export. Commodity Analysis: China produces a significant amount of coal for use at home. The use of coal to provide energy leads to other health related problems. SWOT Analysis: The leading Chinese strength is their cheap labor, while the main weaknesses are political risk and corruption. Renewable energy has the opportunity to propel growth, while general pollution and an aging population could slow growth rates. Profit Conclusion: An undervalued currency, average investment flow potential and an unfavorable business environment leads to a neutral outlook for Chinese investments.
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency Analysis: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade Analysis: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity Analysis: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Profit Conclusion: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency Analysis: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies (see investment flows analysis). Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade Analysis: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity Analysis: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the housing crisis may lower growth. Profit Conclusion: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
