NYSE:AGCO is probably undervalued for the fundamentals it is displaying.

Last update: Jan 16, 2024

AGCO CORP (NYSE:AGCO) was identified as a decent value stock by our stock screener. NYSE:AGCO scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Insights: 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:

AGCO is valuated cheaply with a Price/Earnings ratio of 7.24.
96.92% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.82. AGCO is valued rather cheaply when compared to this.
AGCO is valuated cheaply with a Price/Forward Earnings ratio of 7.94.
AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 93.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, AGCO is valued rather cheaply.
93.85% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AGCO is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
AGCO's 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.

What does the Profitability looks like for NYSE:AGCO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AGCO has achieved a 8:

AGCO has a Return On Assets of 10.17%. This is amongst the best in the industry. AGCO outperforms 82.31% of its industry peers.
The Return On Equity of AGCO (26.51%) is better than 88.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.87%, AGCO belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is above the industry average of 10.60%.
The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.87%), indicating increased profibility in the last year.
AGCO's Profit Margin of 7.96% is fine compared to the rest of the industry. AGCO outperforms 63.08% of its industry peers.
AGCO's Profit Margin has improved in the last couple of years.
The Operating Margin of AGCO (12.29%) is better than 66.92% 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.

A Closer Look at Health for 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 3.57 indicates that AGCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, AGCO is doing good in the industry, outperforming 63.85% 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.
AGCO has a better Debt to FCF ratio (2.35) than 76.92% of its industry peers.
AGCO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.

Growth Analysis for NYSE:AGCO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:AGCO was assigned a score of 6 for growth:

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!
AGCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.78% yearly.

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

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

Disclaimer

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.