In a market where value is scarce, NYSE:AGCO offers a refreshing opportunity with its solid fundamentals.

Last update: Feb 27, 2024

Discover AGCO CORP (NYSE:AGCO), an undervalued stock highlighted by our stock screener. NYSE:AGCO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Insights: 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:

AGCO is valuated cheaply with a Price/Earnings ratio of 6.62.
Based on the Price/Earnings ratio, AGCO is valued cheaper than 97.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (25.81), we can say AGCO is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.96, the valuation of AGCO can be described as very cheap.
AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 95.42% 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 21.49.
Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaply inside the industry as 95.42% of the companies are valued more expensively.
92.37% of the companies in the same industry are more expensive than AGCO, based on the Price/Free Cash Flow ratio.
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.

Analyzing Profitability Metrics

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:

With an excellent Return On Assets value of 10.17%, AGCO belongs to the best of the industry, outperforming 83.21% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.51%, AGCO belongs to the top of the industry, outperforming 87.79% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.87%, AGCO belongs to the best of the industry, outperforming 93.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGCO is above the industry average of 10.63%.
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 has a better Profit Margin (7.96%) than 64.12% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
Looking at the Operating Margin, with a value of 12.29%, AGCO is in the better half of the industry, outperforming 64.89% of the companies in the same industry.
In the last couple of years the Operating Margin of AGCO has grown nicely.
AGCO's Gross Margin has improved in the last couple of years.

Health Analysis for NYSE:AGCO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AGCO has received a 5 out of 10:

An Altman-Z score of 3.50 indicates that AGCO is not in any danger for bankruptcy at the moment.
AGCO has a Altman-Z score of 3.50. This is in the better half of the industry: AGCO outperforms 65.65% 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's Debt to FCF ratio of 2.35 is fine compared to the rest of the industry. AGCO outperforms 77.10% 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.

Deciphering NYSE:AGCO's Growth Rating

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.
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%.
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

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.