AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:A - US00846U1016 - Common Stock
135.05 USD
-3.58 (-2.58%)
135.05 USD
0 (0%)
Taking everything into account, A scores 6 out of 10 in our fundamental rating. A was compared to 57 industry peers in the Life Sciences Tools & Services industry. While A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year A was profitable.
- In the past year A had a positive cash flow from operations.
- Each year in the past 5 years A has been profitable.
- A had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- A has a better Return On Assets (9.98%) than 89.47% of its industry peers.
- A has a Return On Equity of 19.15%. This is amongst the best in the industry. A outperforms 89.47% of its industry peers.
- A has a better Return On Invested Capital (12.86%) than 87.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.98% | ||
| ROE | 19.15% | ||
| ROIC | 12.86% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- A has a Profit Margin of 17.97%. This is amongst the best in the industry. A outperforms 91.23% of its industry peers.
- A's Profit Margin has improved in the last couple of years.
- A's Operating Margin of 22.44% is amongst the best of the industry. A outperforms 92.98% of its industry peers.
- In the last couple of years the Operating Margin of A has grown nicely.
- A has a Gross Margin of 52.92%. This is in the better half of the industry: A outperforms 64.91% of its industry peers.
- A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.44% | ||
| PM (TTM) | 17.97% | ||
| GM | 52.92% |
OM growth 3Y-3.42%
OM growth 5Y5.78%
PM growth 3Y0.8%
PM growth 5Y6.85%
GM growth 3Y-1.19%
GM growth 5Y-0.27%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), A is creating some value.
- There is no outstanding debt for A. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- A has an Altman-Z score of 5.35. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
- A has a better Altman-Z score (5.35) than 82.46% of its industry peers.
- The Debt to FCF ratio of A is 3.13, which is a good value as it means it would take A, 3.13 years of fcf income to pay off all of its debts.
- A has a Debt to FCF ratio of 3.13. This is amongst the best in the industry. A outperforms 82.46% of its industry peers.
- A has a Debt/Equity ratio of 0.54. This is a neutral value indicating A is somewhat dependend on debt financing.
- A has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: A underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 5.35 |
ROIC/WACC1.18
WACC10.92%
2.3 Liquidity
- A Current Ratio of 2.25 indicates that A has no problem at all paying its short term obligations.
- The Current ratio of A (2.25) is comparable to the rest of the industry.
- A Quick Ratio of 1.71 indicates that A should not have too much problems paying its short term obligations.
- A has a Quick ratio (1.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
- A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.48%.
- Measured over the past years, A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.21% on average per year.
- A shows a small growth in Revenue. In the last year, the Revenue has grown by 6.73%.
- A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.41% yearly.
EPS 1Y (TTM)5.48%
EPS 3Y2.31%
EPS 5Y11.21%
EPS Q2Q%8.9%
Revenue 1Y (TTM)6.73%
Revenue growth 3Y0.48%
Revenue growth 5Y5.41%
Sales Q2Q%9.41%
3.2 Future
- A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.21% yearly.
- Based on estimates for the next years, A will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y8.47%
EPS Next 2Y9.31%
EPS Next 3Y10.11%
EPS Next 5Y9.21%
Revenue Next Year6.39%
Revenue Next 2Y6.33%
Revenue Next 3Y6.43%
Revenue Next 5Y5.84%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A is valuated rather expensively with a Price/Earnings ratio of 24.20.
- 82.46% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
- A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 22.31, which indicates a rather expensive current valuation of A.
- A's Price/Forward Earnings ratio is rather cheap when compared to the industry. A is cheaper than 82.46% of the companies in the same industry.
- A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, A is valued a bit cheaper than 70.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than the industry average as 71.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.19 | ||
| EV/EBITDA | 22.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.86
PEG (5Y)2.16
EPS Next 2Y9.31%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.70%, A is not a good candidate for dividend investing.
- A's Dividend Yield is rather good when compared to the industry average which is at 0.09. A pays more dividend than 98.25% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
- The dividend of A is nicely growing with an annual growth rate of 7.63%!
- A has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of A decreased recently.
Dividend Growth(5Y)7.63%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 22.95% of the earnings are spent on dividend by A. This is a low number and sustainable payout ratio.
- A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.95%
EPS Next 2Y9.31%
EPS Next 3Y10.11%
AGILENT TECHNOLOGIES INC / A FAQ
Can you provide the ChartMill fundamental rating for AGILENT TECHNOLOGIES INC?
ChartMill assigns a fundamental rating of 6 / 10 to A.
Can you provide the valuation status for AGILENT TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 5 / 10 to AGILENT TECHNOLOGIES INC (A). This can be considered as Fairly Valued.
Can you provide the profitability details for AGILENT TECHNOLOGIES INC?
AGILENT TECHNOLOGIES INC (A) has a profitability rating of 8 / 10.
What is the valuation of AGILENT TECHNOLOGIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AGILENT TECHNOLOGIES INC (A) is 24.2 and the Price/Book (PB) ratio is 6.01.
Can you provide the dividend sustainability for A stock?
The dividend rating of AGILENT TECHNOLOGIES INC (A) is 5 / 10 and the dividend payout ratio is 22.95%.