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AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis

NYSE:A - New York Stock Exchange, Inc. - US00846U1016 - Common Stock - Currency: USD

135.2  +0.53 (+0.39%)

After market: 135.2 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to A. A was compared to 57 industry peers in the Life Sciences Tools & Services industry. Both the health and profitability get an excellent rating, making A a very profitable company, without any liquidiy or solvency issues. A has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

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.
In the past 5 years A always reported a positive cash flow from operatings.
A Yearly Net Income VS EBIT VS OCF VS FCFA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

The Return On Assets of A (10.88%) is better than 92.98% of its industry peers.
A's Return On Equity of 21.85% is amongst the best of the industry. A outperforms 96.49% of its industry peers.
A's Return On Invested Capital of 13.87% is amongst the best of the industry. A outperforms 94.74% of its industry peers.
A had an Average Return On Invested Capital over the past 3 years of 14.65%. This is significantly above the industry average of 9.61%.
Industry RankSector Rank
ROA 10.88%
ROE 21.85%
ROIC 13.87%
ROA(3y)11.44%
ROA(5y)10.62%
ROE(3y)22.24%
ROE(5y)20.78%
ROIC(3y)14.65%
ROIC(5y)13.29%
A Yearly ROA, ROE, ROICA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

With an excellent Profit Margin value of 19.80%, A belongs to the best of the industry, outperforming 96.49% 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.
Looking at the Operating Margin, with a value of 24.02%, A belongs to the top of the industry, outperforming 92.98% of the companies in the same industry.
In the last couple of years the Operating Margin of A has grown nicely.
A has a better Gross Margin (54.50%) than 70.18% of its industry peers.
A's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24.02%
PM (TTM) 19.8%
GM 54.5%
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%
A Yearly Profit, Operating, Gross MarginsA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

7

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.
Compared to 1 year ago, A has less shares outstanding
A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, A has a worse debt to assets ratio.
A Yearly Shares OutstandingA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
A Yearly Total Debt VS Total AssetsA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

A has an Altman-Z score of 5.17. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
A's Altman-Z score of 5.17 is fine compared to the rest of the industry. A outperforms 77.19% of its industry peers.
A has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as A would need 2.47 years to pay back of all of its debts.
A has a Debt to FCF ratio of 2.47. This is amongst the best in the industry. A outperforms 87.72% of its industry peers.
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 64.91% of its industry peers.
Although A does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF 2.47
Altman-Z 5.17
ROIC/WACC1.24
WACC11.18%
A Yearly LT Debt VS Equity VS FCFA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 2.09 indicates that A has no problem at all paying its short term obligations.
A's Current ratio of 2.09 is on the low side compared to the rest of the industry. A is outperformed by 63.16% of its industry peers.
A Quick Ratio of 1.58 indicates that A should not have too much problems paying its short term obligations.
A's Quick ratio of 1.58 is on the low side compared to the rest of the industry. A is outperformed by 61.40% of its industry peers.
A does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 2.09
Quick Ratio 1.58
A Yearly Current Assets VS Current LiabilitesA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

4

3. Growth

3.1 Past

The earnings per share for A have decreased by -2.94% in the last year.
Measured over the past years, A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
Looking at the last year, A shows a decrease in Revenue. The Revenue has decreased by -4.73% in the last year.
The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)-2.94%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%5.8%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%0.77%

3.2 Future

Based on estimates for the next years, A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.19% on average per year.
Based on estimates for the next years, A will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y7.36%
EPS Next 2Y8.59%
EPS Next 3Y9.14%
EPS Next 5Y9.19%
Revenue Next Year5.42%
Revenue Next 2Y5.93%
Revenue Next 3Y6.05%
Revenue Next 5Y5.88%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
A Yearly Revenue VS EstimatesA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
A Yearly EPS VS EstimatesA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

4

4. Valuation

4.1 Price/Earnings Ratio

A is valuated quite expensively with a Price/Earnings ratio of 25.56.
Based on the Price/Earnings ratio, A is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 30.43, A is valued at the same level.
With a Price/Forward Earnings ratio of 23.81, A is valued on the expensive side.
Based on the Price/Forward Earnings ratio, A is valued a bit cheaper than 77.19% 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 23.78.
Industry RankSector Rank
PE 25.56
Fwd PE 23.81
A Price Earnings VS Forward Price EarningsA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, A is valued a bit cheaper than 78.95% 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 77.19% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.09
EV/EBITDA 22.29
A Per share dataA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)3.47
PEG (5Y)2.29
EPS Next 2Y8.59%
EPS Next 3Y9.14%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.73%, A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.42, A pays a better dividend. On top of this A pays more dividend than 100.00% of the companies listed in the same industry.
With a Dividend Yield of 0.73, A pays less dividend than the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 0.73%

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.
Dividend Growth(5Y)7.63%
Div Incr Years0
Div Non Decr Years0
A Yearly Dividends per shareA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

A pays out 21.26% 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.
DP21.26%
EPS Next 2Y8.59%
EPS Next 3Y9.14%
A Yearly Income VS Free CF VS DividendA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B
A Dividend Payout.A Dividend Payout, showing the Payout Ratio.A Dividend Payout.PayoutRetained Earnings

AGILENT TECHNOLOGIES INC

NYSE:A (2/18/2025, 8:23:28 PM)

After market: 135.2 0 (0%)

135.2

+0.53 (+0.39%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)11-25 2024-11-25/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners91.99%
Inst Owner Change0.16%
Ins Owners0.19%
Ins Owner Change0.82%
Market Cap38.57B
Analysts74.62
Price Target153.7 (13.68%)
Short Float %1.14%
Short Ratio2.01
Dividend
Industry RankSector Rank
Dividend Yield 0.73%
Yearly Dividend0.95
Dividend Growth(5Y)7.63%
DP21.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.24%
Min EPS beat(2)1.57%
Max EPS beat(2)2.92%
EPS beat(4)4
Avg EPS beat(4)2.05%
Min EPS beat(4)0.33%
Max EPS beat(4)3.38%
EPS beat(8)7
Avg EPS beat(8)1.68%
EPS beat(12)10
Avg EPS beat(12)2.58%
EPS beat(16)14
Avg EPS beat(16)4.5%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)2.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)5
Avg Revenue beat(12)0.15%
Revenue beat(16)8
Avg Revenue beat(16)0.82%
PT rev (1m)1.53%
PT rev (3m)1.4%
EPS NQ rev (1m)-2.2%
EPS NQ rev (3m)-9.1%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.13%
Valuation
Industry RankSector Rank
PE 25.56
Fwd PE 23.81
P/S 5.92
P/FCF 28.09
P/OCF 22.03
P/B 6.54
P/tB 44.13
EV/EBITDA 22.29
EPS(TTM)5.29
EY3.91%
EPS(NY)5.68
Fwd EY4.2%
FCF(TTM)4.81
FCFY3.56%
OCF(TTM)6.14
OCFY4.54%
SpS22.82
BVpS20.67
TBVpS3.06
PEG (NY)3.47
PEG (5Y)2.29
Profitability
Industry RankSector Rank
ROA 10.88%
ROE 21.85%
ROCE 15.72%
ROIC 13.87%
ROICexc 16%
ROICexgc 38.07%
OM 24.02%
PM (TTM) 19.8%
GM 54.5%
FCFM 21.09%
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 RankSector Rank
Debt/Equity 0.57
Debt/FCF 2.47
Debt/EBITDA 1.86
Cap/Depr 147.08%
Cap/Sales 5.81%
Interest Coverage 19.55
Cash Conversion 96.16%
Profit Quality 106.52%
Current Ratio 2.09
Quick Ratio 1.58
Altman-Z 5.17
F-Score5
WACC11.18%
ROIC/WACC1.24
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)-2.94%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%5.8%
EPS Next Y7.36%
EPS Next 2Y8.59%
EPS Next 3Y9.14%
EPS Next 5Y9.19%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%0.77%
Revenue Next Year5.42%
Revenue Next 2Y5.93%
Revenue Next 3Y6.05%
Revenue Next 5Y5.88%
EBIT growth 1Y11.32%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.67%
EBIT Next 3Y11.9%
EBIT Next 5Y10.83%
FCF growth 1Y-6.85%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y-1.19%
OCF growth 3Y5.65%
OCF growth 5Y11.39%