NYSE:AGCO stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Feb 6, 2024

Consider AGCO CORP (NYSE:AGCO) as a top value stock, identified by our stock screening tool. NYSE:AGCO shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NYSE:AGCO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:AGCO has received a 9 out of 10:

Based on the Price/Earnings ratio of 7.45, the valuation of AGCO can be described as very cheap.
Based on the Price/Earnings ratio, AGCO is valued cheaper than 96.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.62. AGCO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.94 indicates a reasonable valuation of AGCO.
Based on the Price/Forward Earnings ratio, AGCO is valued cheaper than 93.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.25. AGCO is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaper than 94.66% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGCO is valued cheaper than 87.79% of the companies in the same industry.
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.

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 82.44% of its industry peers.
With an excellent Return On Equity value of 26.51%, AGCO belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
AGCO's Return On Invested Capital of 19.87% is amongst the best of the industry. AGCO outperforms 93.89% 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 10.57%.
The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.87%), indicating increased profibility in the last year.
With a decent Profit Margin value of 7.96%, AGCO is doing good in the industry, outperforming 63.36% of the companies in the same industry.
AGCO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.29%, AGCO is doing good in the industry, outperforming 66.41% of the companies in the same industry.
AGCO's Operating Margin has improved in the last couple of years.
AGCO's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NYSE:AGCO?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:AGCO, the assigned 5 reflects its health status:

An Altman-Z score of 3.59 indicates that AGCO is not in any danger for bankruptcy at the moment.
AGCO has a better Altman-Z score (3.59) than 66.41% of its industry peers.
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.
The Debt to FCF ratio of AGCO (2.35) is better than 76.34% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that AGCO is not too dependend on debt financing.

Growth Assessment of NYSE:AGCO

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:AGCO has earned a 6 for growth:

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.
Measured over the past years, AGCO shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.66% on average per year.
Looking at the last year, AGCO shows a very strong growth in Revenue. The Revenue has grown by 21.86%.
Measured over the past years, AGCO shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.

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

Disclaimer

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.