AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
NYSE:A - New York Stock Exchange, Inc. - US00846U1016 - Common Stock - Currency: USD
A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Life Sciences Tools & Services industry. A has an excellent profitability rating, but there are some minor concerns on its financial health. A is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year A was profitable.
A had a positive operating cash flow in the past year.
A had positive earnings in each of the past 5 years.
A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
A has a Return On Assets of 9.59%. This is amongst the best in the industry. A outperforms 89.09% of its industry peers.
A has a Return On Equity of 19.00%. This is amongst the best in the industry. A outperforms 90.91% of its industry peers.
A's Return On Invested Capital of 13.32% is amongst the best of the industry. A outperforms 87.27% of its industry peers.
A had an Average Return On Invested Capital over the past 3 years of 14.65%. This is in line with the industry average of 13.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 19% | ||
| ROIC | 13.32% |
ROA(3y)11.44%
ROA(5y)10.62%
ROE(3y)22.24%
ROE(5y)20.78%
ROIC(3y)14.65%
ROIC(5y)13.29%
1.3 Margins
With an excellent Profit Margin value of 17.59%, A belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
In the last couple of years the Profit Margin of A has remained more or less at the same level.
A's Operating Margin of 23.33% is amongst the best of the industry. A outperforms 92.73% of its industry peers.
In the last couple of years the Operating Margin of A has grown nicely.
A has a Gross Margin of 53.77%. This is in the better half of the industry: A outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.33% | ||
| PM (TTM) | 17.59% | ||
| GM | 53.77% |
OM growth 3Y4.07%
OM growth 5Y5.41%
PM growth 3Y1.12%
PM growth 5Y-0.93%
GM growth 3Y0.36%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so A is still creating some value.
The number of shares outstanding for A has been reduced compared to 1 year ago.
A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, A has a worse debt to assets ratio.
2.2 Solvency
A has an Altman-Z score of 4.67. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
A's Altman-Z score of 4.67 is amongst the best of the industry. A outperforms 81.82% of its industry peers.
The Debt to FCF ratio of A is 2.94, which is a good value as it means it would take A, 2.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.94, A is doing good in the industry, outperforming 78.18% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that A is somewhat dependend on debt financing.
A's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. A is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.67 |
ROIC/WACC1.35
WACC9.89%
2.3 Liquidity
A has a Current Ratio of 2.09. This indicates that A is financially healthy and has no problem in meeting its short term obligations.
A's Current ratio of 2.09 is in line compared to the rest of the industry. A outperforms 43.64% of its industry peers.
A has a Quick Ratio of 1.60. This is a normal value and indicates that A is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of A (1.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.50% over the past year.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)1.5%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%7.38%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
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 8.67% yearly.
Based on estimates for the next years, A will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y7.41%
EPS Next 2Y8.04%
EPS Next 3Y8.81%
EPS Next 5Y8.67%
Revenue Next Year4.52%
Revenue Next 2Y5.08%
Revenue Next 3Y5.5%
Revenue Next 5Y5.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 21.85, which indicates a rather expensive current valuation of A.
Based on the Price/Earnings ratio, A is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.15, A is valued at the same level.
A is valuated rather expensively with a Price/Forward Earnings ratio of 19.11.
80.00% of the companies in the same industry are more expensive than A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
76.36% of the companies in the same industry are more expensive than A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.3 | ||
| EV/EBITDA | 19.66 |
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)2.95
PEG (5Y)1.96
EPS Next 2Y8.04%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
A has a yearly dividend return of 0.83%, which is pretty low.
A's Dividend Yield is rather good when compared to the industry average which is at 0.51. A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of A grows each year by 7.63%, which is quite nice.
A has been paying a dividend for at least 10 years, so it has a reliable track record.
A has decreased its dividend recently.
Dividend Growth(5Y)7.63%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
23.76% of the earnings are spent on dividend by A. This is a low number and sustainable payout ratio.
The dividend of A is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP23.76%
EPS Next 2Y8.04%
EPS Next 3Y8.81%
118.01
-1.16 (-0.97%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.42%
Inst Owner Change0.44%
Ins Owners0.18%
Ins Owner Change-0.11%
Market Cap33.64B
Analysts76.3
Price Target136.4 (15.58%)
Short Float %1.46%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.95
Dividend Growth(5Y)7.63%
DP23.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.35%
Min EPS beat(2)1.14%
Max EPS beat(2)1.56%
EPS beat(4)4
Avg EPS beat(4)1.8%
Min EPS beat(4)1.14%
Max EPS beat(4)2.92%
EPS beat(8)8
Avg EPS beat(8)1.81%
EPS beat(12)11
Avg EPS beat(12)2.82%
EPS beat(16)14
Avg EPS beat(16)2.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)6
Avg Revenue beat(12)0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)-4.65%
PT rev (3m)-11.04%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 19.11 | ||
| P/S | 5.08 | ||
| P/FCF | 28.3 | ||
| P/OCF | 21.23 | ||
| P/B | 5.48 | ||
| P/tB | 28.83 | ||
| EV/EBITDA | 19.66 |
EPS(TTM)5.4
EY4.58%
EPS(NY)6.17
Fwd EY5.23%
FCF(TTM)4.17
FCFY3.53%
OCF(TTM)5.56
OCFY4.71%
SpS23.25
BVpS21.52
TBVpS4.09
PEG (NY)2.95
PEG (5Y)1.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 19% | ||
| ROCE | 15.24% | ||
| ROIC | 13.32% | ||
| ROICexc | 15.57% | ||
| ROICexgc | 35.73% | ||
| OM | 23.33% | ||
| PM (TTM) | 17.59% | ||
| GM | 53.77% | ||
| FCFM | 17.94% |
ROA(3y)11.44%
ROA(5y)10.62%
ROE(3y)22.24%
ROE(5y)20.78%
ROIC(3y)14.65%
ROIC(5y)13.29%
ROICexc(3y)17.07%
ROICexc(5y)15.7%
ROICexgc(3y)42.54%
ROICexgc(5y)41.66%
ROCE(3y)16.57%
ROCE(5y)15.04%
ROICexcg growth 3Y-7.71%
ROICexcg growth 5Y-3.01%
ROICexc growth 3Y-0.19%
ROICexc growth 5Y4.58%
OM growth 3Y4.07%
OM growth 5Y5.41%
PM growth 3Y1.12%
PM growth 5Y-0.93%
GM growth 3Y0.36%
GM growth 5Y0.01%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 142.96% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 16.99 | ||
| Cash Conversion | 86.94% | ||
| Profit Quality | 101.97% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 4.67 |
F-Score5
WACC9.89%
ROIC/WACC1.35
Cap/Depr(3y)116.28%
Cap/Depr(5y)89.27%
Cap/Sales(3y)4.81%
Cap/Sales(5y)3.93%
Profit Quality(3y)102.27%
Profit Quality(5y)105.09%
High Growth Momentum
Growth
EPS 1Y (TTM)1.5%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%7.38%
EPS Next Y7.41%
EPS Next 2Y8.04%
EPS Next 3Y8.81%
EPS Next 5Y8.67%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
Revenue Next Year4.52%
Revenue Next 2Y5.08%
Revenue Next 3Y5.5%
Revenue Next 5Y5.53%
EBIT growth 1Y14.77%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.02%
EBIT Next 3Y12.22%
EBIT Next 5Y9.51%
FCF growth 1Y0.51%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y7.97%
OCF growth 3Y5.65%
OCF growth 5Y11.39%