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

Last update: Jun 24, 2024

AGCO CORP (NYSE:AGCO) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:AGCO showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Evaluating Valuation: NYSE:AGCO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:AGCO, the assigned 8 reflects its valuation:

AGCO is valuated cheaply with a Price/Earnings ratio of 7.03.
93.70% 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 28.63. AGCO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.23, which indicates a very decent valuation of AGCO.
AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 89.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.22. AGCO is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaper than 97.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGCO is valued cheaply inside the industry as 94.49% of the companies are valued more expensively.
The excellent profitability rating of AGCO may justify a higher PE ratio.

Understanding NYSE:AGCO's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:AGCO was assigned a score of 8 for profitability:

AGCO has a better Return On Assets (8.22%) than 73.23% of its industry peers.
Looking at the Return On Equity, with a value of 23.28%, AGCO belongs to the top of the industry, outperforming 85.04% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.46%, AGCO belongs to the best of the industry, outperforming 81.10% of the companies in the same industry.
AGCO had an Average Return On Invested Capital over the past 3 years of 16.46%. This is significantly above the industry average of 10.66%.
AGCO has a better Profit Margin (7.90%) than 62.20% of its industry peers.
AGCO's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of AGCO has grown nicely.
In the last couple of years the Gross Margin of AGCO has grown nicely.

Understanding NYSE:AGCO's Health

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 3.00 indicates that AGCO is not in any danger for bankruptcy at the moment.

How We Gauge Growth for NYSE:AGCO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:AGCO, the assigned 4 reflects its growth potential:

Measured over the past years, AGCO shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.93% on average per year.
The Revenue has been growing by 9.04% on average over the past years. This is quite good.

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

This article should in no way be interpreted as advice. 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.