AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:A - US00846U1016 - Common Stock
135.65 USD
+0.6 (+0.44%)
135.65 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to A. A was compared to 58 industry peers in the Life Sciences Tools & Services industry. While A has a great profitability rating, 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
- A had positive earnings in the past year.
- 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 89.66% of its industry peers.
- A has a better Return On Equity (19.15%) than 89.66% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 12.86%, A belongs to the top of the industry, outperforming 87.93% of the companies in the same industry.
| 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
- Looking at the Profit Margin, with a value of 17.97%, A belongs to the top of the industry, outperforming 91.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of A has grown nicely.
- With an excellent Operating Margin value of 22.44%, A belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
- A's Operating Margin has improved in the last couple of years.
- A has a better Gross Margin (52.92%) than 65.52% 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 5.25. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.25, A belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 3.13, A belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- A has a Debt/Equity ratio of 0.54. This is a neutral value indicating A is somewhat dependend on debt financing.
- A's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. A is outperformed by 67.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.18
WACC10.9%
2.3 Liquidity
- A has a Current Ratio of 2.25. This indicates that A is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of A (2.25) is comparable to the rest of the industry.
- A has a Quick Ratio of 1.71. This is a normal value and indicates that A is financially healthy and should not expect problems in meeting its short term obligations.
- A has a Quick ratio of 1.71. This is comparable to the rest of the industry: A outperforms 43.10% of its industry peers.
| 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%.
- A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.21% yearly.
- Looking at the last year, A shows a small growth in Revenue. The Revenue has grown by 6.73% in the last year.
- 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
- The Earnings Per Share is expected to grow by 9.21% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.84% on average over the next years.
EPS Next Y8.47%
EPS Next 2Y9.31%
EPS Next 3Y10.11%
EPS Next 5Y9.21%
Revenue Next Year6.38%
Revenue Next 2Y6.31%
Revenue Next 3Y6.39%
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
- Based on the Price/Earnings ratio of 24.31, the valuation of A can be described as rather expensive.
- 84.48% 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 27.25, which is the current average of the S&P500 Index.
- A is valuated rather expensively with a Price/Forward Earnings ratio of 22.41.
- A's Price/Forward Earnings ratio is rather cheap when compared to the industry. A is cheaper than 82.76% of the companies in the same industry.
- A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 22.41 |
4.2 Price Multiples
- 70.69% of the companies in the same industry are more expensive than A, based on the Enterprise Value to EBITDA ratio.
- A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. A is cheaper than 70.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.35 | ||
| EV/EBITDA | 22.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates A does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of A may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)2.17
EPS Next 2Y9.31%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
- A has a yearly dividend return of 0.74%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.09, A pays a better dividend. On top of this A pays more dividend than 98.28% of the companies listed in the same industry.
- With a Dividend Yield of 0.74, A pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
- The dividend of A is nicely growing with an annual growth rate of 7.63%!
- A has paid a dividend for at least 10 years, which is 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
- A pays out 22.95% of its income as dividend. This is a 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 24.31 and the Price/Book (PB) ratio is 6.04.
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%.