For those who appreciate value investing, NYSE:AGCO is a compelling option with its solid fundamentals.

Last update: Jul 16, 2024

Uncover the hidden value in AGCO CORP (NYSE:AGCO) as our stock screening tool recommends it as an undervalued choice. NYSE:AGCO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Unpacking NYSE:AGCO's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:AGCO scores a 8 out of 10:

A Price/Earnings ratio of 6.88 indicates a rather cheap valuation of AGCO.
Based on the Price/Earnings ratio, AGCO is valued cheaper than 93.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.19. AGCO is valued rather cheaply when compared to this.
AGCO is valuated reasonably with a Price/Forward Earnings ratio of 8.05.
Based on the Price/Forward Earnings ratio, AGCO is valued cheaply inside the industry as 91.34% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AGCO to the average of the S&P500 Index (20.63), we can say AGCO is valued rather cheaply.
96.85% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
AGCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGCO is cheaper than 96.06% of the companies in the same industry.
The excellent profitability rating of AGCO may justify a higher PE ratio.

A Closer Look at Profitability for NYSE:AGCO

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's Return On Assets of 8.22% is fine compared to the rest of the industry. AGCO outperforms 72.44% of its industry peers.
AGCO's Return On Equity of 23.28% is amongst the best of the industry. AGCO outperforms 85.04% of its industry peers.
AGCO has a better Return On Invested Capital (13.46%) than 81.10% of its industry peers.
AGCO had an Average Return On Invested Capital over the past 3 years of 16.46%. This is significantly above the industry average of 10.80%.
AGCO has a Profit Margin of 7.90%. This is in the better half of the industry: AGCO outperforms 61.42% 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.
AGCO's Gross Margin has improved in the last couple of years.

Evaluating Growth: 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 4 for growth:

AGCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.93% yearly.
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.