Don't overlook NYSE:AGCO—it's a hidden gem with strong fundamentals and an attractive price tag.

Uncover the potential of AGCO CORP (NYSE:AGCO) as our stock screener's choice for an undervalued stock. NYSE:AGCO maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Evaluating Valuation: NYSE:AGCO

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:AGCO has earned a 9 for valuation:

• A Price/Earnings ratio of 7.23 indicates a rather cheap valuation of AGCO.
• Based on the Price/Earnings ratio, AGCO is valued cheaply inside the industry as 96.18% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 25.04, AGCO is valued rather cheaply.
• A Price/Forward Earnings ratio of 7.76 indicates a rather cheap valuation of AGCO.
• Based on the Price/Forward Earnings ratio, AGCO is valued cheaper than 90.84% of the companies in the same industry.
• AGCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.08.
• 93.13% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
• 84.73% of the companies in the same industry are more expensive than AGCO, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• AGCO has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Profitability: NYSE:AGCO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:AGCO, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of AGCO (10.17%) is better than 80.92% of its industry peers.
• AGCO's Return On Equity of 26.51% is amongst the best of the industry. AGCO outperforms 89.31% of its industry peers.
• AGCO has a Return On Invested Capital of 19.87%. This is amongst the best in the industry. AGCO outperforms 93.89% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for AGCO is above the industry average of 10.31%.
• The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.87%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 7.96%, AGCO is in the better half of the industry, outperforming 64.12% of the companies in the same industry.
• In the last couple of years the Profit Margin of AGCO has grown nicely.
• The Operating Margin of AGCO (12.29%) is better than 67.94% of its industry peers.
• AGCO's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of AGCO has grown nicely.

How do we evaluate the Health for NYSE:AGCO?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:AGCO has earned a 5 out of 10:

• AGCO has an Altman-Z score of 3.57. This indicates that AGCO is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of AGCO (3.57) is better than 69.47% of its industry peers.
• The Debt to FCF ratio of AGCO is 2.35, which is a good value as it means it would take AGCO, 2.35 years of fcf income to pay off all of its debts.
• AGCO has a better Debt to FCF ratio (2.35) than 75.57% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that AGCO is not too dependend on debt financing.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:AGCO scores a 6 out of 10:

• AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.37%, 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
• AGCO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.86%.
• The Revenue has been growing by 8.78% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of AGCO contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.