Uncover the hidden value in AGCO CORP (NYSE:AGCO) as our stock screening tool recommends it as an undervalued choice. NYSE:AGCO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.
A Closer Look at Valuation for NYSE:AGCO
To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:AGCO has achieved a 9 out of 10:
- The Price/Earnings ratio is 7.82, which indicates a rather cheap valuation of AGCO.
- AGCO's Price/Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 95.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.79, AGCO is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.88 indicates a rather cheap valuation of AGCO.
- AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 94.57% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 18.89, AGCO is valued rather cheaply.
- AGCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGCO is cheaper than 92.25% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AGCO is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of AGCO may justify a higher PE ratio.
Evaluating Profitability: NYSE:AGCO
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:AGCO was assigned a score of 8 for profitability:
- AGCO's Return On Assets of 9.76% is fine compared to the rest of the industry. AGCO outperforms 79.84% of its industry peers.
- Looking at the Return On Equity, with a value of 26.87%, AGCO belongs to the top of the industry, outperforming 89.92% of the companies in the same industry.
- AGCO's Return On Invested Capital of 19.14% is amongst the best of the industry. AGCO outperforms 93.02% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AGCO is above the industry average of 10.06%.
- The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.14%), indicating increased profibility in the last year.
- The Profit Margin of AGCO (7.84%) is better than 67.44% of its industry peers.
- AGCO's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 11.93%, AGCO is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
- In the last couple of years the Operating Margin of AGCO has grown nicely.
- In the last couple of years the Gross Margin of AGCO has grown nicely.
Evaluating Health: NYSE:AGCO
ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:AGCO has earned a 5 out of 10:
- An Altman-Z score of 3.45 indicates that AGCO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.45, AGCO is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
- The Debt to FCF ratio of AGCO (4.09) is better than 71.32% of its industry peers.
Growth Assessment of NYSE:AGCO
To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:AGCO has achieved a 5 out of 10:
- AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.73%, which is quite impressive.
- The Earnings Per Share has been growing by 32.66% on average over the past years. This is a very strong growth
- The Revenue has grown by 23.16% in the past year. This is a very strong growth!
- The Revenue has been growing by 8.78% on average over the past years. This is quite good.
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For an up to date full fundamental analysis you can check the fundamental report of AGCO
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.