NYSE:AGCO, an undervalued stock with good fundamentals.

Last update: Dec 25, 2023

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.

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:

Based on the Price/Earnings ratio of 7.53, the valuation of AGCO can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 96.97% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.95. AGCO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.26, the valuation of AGCO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 92.42% of the companies listed 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 20.89.
Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaper than 93.94% of the companies in the same industry.
87.12% 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.

Profitability Analysis for 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:

AGCO's Return On Assets of 10.17% is amongst the best of the industry. AGCO outperforms 81.82% of its industry peers.
AGCO has a Return On Equity of 26.51%. This is amongst the best in the industry. AGCO outperforms 88.64% of its industry peers.
AGCO's Return On Invested Capital of 19.87% is amongst the best of the industry. AGCO outperforms 93.94% of its industry peers.
AGCO had an Average Return On Invested Capital over the past 3 years of 13.89%. This is above the industry average of 10.54%.
The last Return On Invested Capital (19.87%) for AGCO is above the 3 year average (13.89%), which is a sign of increasing profitability.
AGCO's Profit Margin of 7.96% is fine compared to the rest of the industry. AGCO outperforms 64.39% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
AGCO has a better Operating Margin (12.29%) than 67.42% 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.

Health Analysis for NYSE:AGCO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AGCO has achieved a 5 out of 10:

AGCO has an Altman-Z score of 3.60. This indicates that AGCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.60, AGCO is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
AGCO has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as AGCO would need 2.35 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.35, AGCO is doing good in the industry, outperforming 76.52% of the companies in the same industry.
AGCO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.

A Closer Look at Growth for NYSE:AGCO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:AGCO boasts a 6 out of 10:

The Earnings Per Share has grown by an impressive 47.37% over the past year.
AGCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.66% yearly.
The Revenue has grown by 21.86% 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of AGCO

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.