AGILENT TECHNOLOGIES INC (A)
US00846U1016 - Common Stock
Overall A gets a fundamental rating of 7 out of 10. We evaluated A against 55 industry peers in the Life Sciences Tools & Services industry. A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
A had positive earnings in each of the past 5 years.
Each year in the past 5 years A had a positive operating cash flow.
1.2 Ratios
A's Return On Assets of 12.85% is amongst the best of the industry. A outperforms 92.73% of its industry peers.
A has a better Return On Equity (23.94%) than 96.36% of its industry peers.
A's Return On Invested Capital of 15.02% is amongst the best of the industry. A outperforms 92.73% of its industry peers.
A had an Average Return On Invested Capital over the past 3 years of 14.34%. This is above the industry average of 10.42%.
The 3 year average ROIC (14.34%) for A is below the current ROIC(15.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.85% | ||
| ROE | 23.94% | ||
| ROIC | 15.02% |
ROA(3y)11.58%
ROA(5y)10.71%
ROE(3y)22.44%
ROE(5y)20.92%
ROIC(3y)14.34%
ROIC(5y)12.54%
1.3 Margins
A's Profit Margin of 21.75% is amongst the best of the industry. A outperforms 100.00% of its industry peers.
A's Profit Margin has improved in the last couple of years.
A has a Operating Margin of 24.70%. This is amongst the best in the industry. A outperforms 94.55% of its industry peers.
In the last couple of years the Operating Margin of A has grown nicely.
With a decent Gross Margin value of 54.75%, A is doing good in the industry, outperforming 69.09% of the companies in the same industry.
A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.7% | ||
| PM (TTM) | 21.75% | ||
| GM | 54.75% |
OM growth 3Y8.56%
OM growth 5Y2.16%
PM growth 3Y10.45%
PM growth 5Y23.06%
GM growth 3Y-1.44%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, A has less shares outstanding
Compared to 5 years ago, A has less shares outstanding
A has a better debt/assets ratio than last year.
2.2 Solvency
A has an Altman-Z score of 5.73. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of A (5.73) is better than 81.82% of its industry peers.
A has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as A would need 2.07 years to pay back of all of its debts.
A has a better Debt to FCF ratio (2.07) than 87.27% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that A is not too dependend on debt financing.
A has a worse Debt to Equity ratio (0.50) than 63.64% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 5.73 |
ROIC/WACC1.35
WACC11.1%
2.3 Liquidity
A Current Ratio of 1.78 indicates that A should not have too much problems paying its short term obligations.
The Current ratio of A (1.78) is worse than 67.27% of its industry peers.
A Quick Ratio of 1.37 indicates that A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, A is doing worse than 61.82% of the companies in the same industry.
The current and quick ratio evaluation for A is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.96%.
Measured over the past years, A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.33% on average per year.
A shows a decrease in Revenue. In the last year, the revenue decreased by -7.11%.
Measured over the past years, A shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
EPS 1Y (TTM)-6.96%
EPS 3Y18.44%
EPS 5Y14.33%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y8.57%
Revenue growth 5Y6.82%
Sales Q2Q%-5.62%
3.2 Future
A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.54% yearly.
Based on estimates for the next years, A will show a small growth in Revenue. The Revenue will grow by 3.94% on average per year.
EPS Next Y-1.95%
EPS Next 2Y2.82%
EPS Next 3Y5.07%
EPS Next 5Y6.54%
Revenue Next Year-4.99%
Revenue Next 2Y0.02%
Revenue Next 3Y2.07%
Revenue Next 5Y3.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.35, which means the current valuation is very expensive for A.
81.82% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of A to the average of the S&P500 Index (28.96), we can say A is valued inline with the index average.
A is valuated rather expensively with a Price/Forward Earnings ratio of 22.92.
Based on the Price/Forward Earnings ratio, A is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.92 |
4.2 Price Multiples
A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. A is cheaper than 81.82% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of A indicates a somewhat cheap valuation: A is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.78 | ||
| EV/EBITDA | 20.11 |
4.3 Compensation for Growth
The excellent profitability rating of A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y2.82%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.69, A pays a better dividend. On top of this A pays more dividend than 98.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of A grows each year by 8.62%, which is quite nice.
A has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
A pays out 19.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.25%
EPS Next 2Y2.82%
EPS Next 3Y5.07%
AGILENT TECHNOLOGIES INC
NYSE:A (11/21/2024, 8:10:01 PM)
After market: 133 +0.94 (+0.71%)132.06
+3.49 (+2.71%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.85% | ||
| ROE | 23.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.7% | ||
| PM (TTM) | 21.75% | ||
| GM | 54.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.96%
EPS 3Y18.44%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y8.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y