Despite its impressive fundamentals, NYSE:AGCO remains undervalued.

Last update: May 31, 2024

Our stock screening tool has pinpointed AGCO CORP (NYSE:AGCO) as an undervalued stock option. NYSE:AGCO retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Analysis for NYSE:AGCO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:AGCO boasts a 8 out of 10:

AGCO is valuated cheaply with a Price/Earnings ratio of 7.29.
AGCO's Price/Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 93.80% of the companies in the same industry.
AGCO is valuated cheaply when we compare the Price/Earnings ratio to 27.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.53, the valuation of AGCO can be described as reasonable.
Based on the Price/Forward Earnings ratio, AGCO is valued cheaper than 91.47% of the companies in the same industry.
AGCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.84, which is the current average of the S&P500 Index.
AGCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGCO is cheaper than 97.67% of the companies in the same industry.
94.57% of the companies in the same industry are more expensive than AGCO, based on the Price/Free Cash Flow ratio.
AGCO has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination 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 has a Return On Assets of 8.22%. This is in the better half of the industry: AGCO outperforms 72.87% of its industry peers.
AGCO's Return On Equity of 23.28% is amongst the best of the industry. AGCO outperforms 86.05% of its industry peers.
With an excellent Return On Invested Capital value of 13.46%, AGCO belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is significantly above the industry average of 10.72%.
AGCO has a better Profit Margin (7.90%) than 62.79% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
AGCO's Operating Margin has improved in the last couple of years.
AGCO's Gross Margin has improved in the last couple of years.

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:

An Altman-Z score of 3.02 indicates that AGCO is not in any danger for bankruptcy at the moment.

Exploring NYSE:AGCO's Growth

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 4 for growth:

The Earnings Per Share has been growing by 31.93% on average over the past years. 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 9.04% yearly.

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.

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.