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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
A had a positive operating cash flow in the past year.
Each year in the past 5 years A has been profitable.
In the past 5 years A always reported a positive cash flow from operatings.
1.2 Ratios
A has a better Return On Assets (10.57%) than 89.09% of its industry peers.
Looking at the Return On Equity, with a value of 20.89%, A belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
The Return On Invested Capital of A (13.70%) is better than 90.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for A is in line with the industry average of 12.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 20.89% | ||
| ROIC | 13.7% |
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
A has a Profit Margin of 19.27%. This is amongst the best in the industry. A outperforms 96.36% of its industry peers.
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 23.79% is amongst the best of the industry. A outperforms 92.73% of its industry peers.
A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 54.17%, A is in the better half of the industry, outperforming 67.27% 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 | 23.79% | ||
| PM (TTM) | 19.27% | ||
| GM | 54.17% |
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
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
A has less shares outstanding than it did 5 years ago.
A has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.23 indicates that A is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.23, A belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
The Debt to FCF ratio of A is 2.56, which is a good value as it means it would take A, 2.56 years of fcf income to pay off all of its debts.
A's Debt to FCF ratio of 2.56 is amongst the best of the industry. A outperforms 87.27% of its industry peers.
A has a Debt/Equity ratio of 0.56. This is a neutral value indicating A is somewhat dependend on debt financing.
A's Debt to Equity ratio of 0.56 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 | 0.56 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.34
WACC10.25%
2.3 Liquidity
A has a Current Ratio of 2.20. This indicates that A is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.20, A is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 1.66 indicates that A should not have too much problems paying its short term obligations.
A has a worse Quick ratio (1.66) than 60.00% of its industry peers.
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 | 2.2 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for A have decreased by -1.12% in the last year.
A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
The Revenue has decreased by -3.00% in the past year.
The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)-1.12%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%1.55%
Revenue 1Y (TTM)-3%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%1.39%
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 9.57% yearly.
A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y7.43%
EPS Next 2Y8.37%
EPS Next 3Y9.04%
EPS Next 5Y9.57%
Revenue Next Year3.95%
Revenue Next 2Y5%
Revenue Next 3Y5.5%
Revenue Next 5Y5.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
A is valuated rather expensively with a Price/Earnings ratio of 18.88.
80.00% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.63. A is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.14, the valuation of A can be described as correct.
Based on the Price/Forward Earnings ratio, A is valued cheaper than 83.64% of the companies in the same industry.
A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, A is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, A is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 16.73 |
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)2.54
PEG (5Y)1.7
EPS Next 2Y8.37%
EPS Next 3Y9.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, A is not a good candidate for dividend investing.
The stock price of A dropped by -33.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
A's Dividend Yield is rather good when compared to the industry average which is at 0.54. A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
5.3 Sustainability
A pays out 21.92% 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.
DP21.92%
EPS Next 2Y8.37%
EPS Next 3Y9.04%
100.26
-2.22 (-2.17%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.15%
Inst Owner Change0.21%
Ins Owners0.19%
Ins Owner Change1.61%
Market Cap28.58B
Analysts74.62
Price Target153.34 (52.94%)
Short Float %1.21%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.95
Dividend Growth(5Y)7.63%
DP21.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.35%
Min EPS beat(2)1.14%
Max EPS beat(2)1.57%
EPS beat(4)4
Avg EPS beat(4)1.49%
Min EPS beat(4)0.33%
Max EPS beat(4)2.92%
EPS beat(8)7
Avg EPS beat(8)1.45%
EPS beat(12)10
Avg EPS beat(12)2.6%
EPS beat(16)14
Avg EPS beat(16)3.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)5
Avg Revenue beat(12)0.09%
Revenue beat(16)7
Avg Revenue beat(16)0.41%
PT rev (1m)0%
PT rev (3m)1.3%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-3.52%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.14 | ||
| P/S | 4.38 | ||
| P/FCF | 21.79 | ||
| P/OCF | 16.84 | ||
| P/B | 4.74 | ||
| P/tB | 26.37 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)5.31
EY5.3%
EPS(NY)6.21
Fwd EY6.2%
FCF(TTM)4.6
FCFY4.59%
OCF(TTM)5.95
OCFY5.94%
SpS22.91
BVpS21.14
TBVpS3.8
PEG (NY)2.54
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.57% | ||
| ROE | 20.89% | ||
| ROCE | 15.47% | ||
| ROIC | 13.7% | ||
| ROICexc | 16.03% | ||
| ROICexgc | 37.74% | ||
| OM | 23.79% | ||
| PM (TTM) | 19.27% | ||
| GM | 54.17% | ||
| FCFM | 20.08% |
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 | 0.56 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 144.2% | ||
| Cap/Sales | 5.89% | ||
| Interest Coverage | 22.52 | ||
| Cash Conversion | 93.19% | ||
| Profit Quality | 104.21% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.23 |
F-Score5
WACC10.25%
ROIC/WACC1.34
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)-1.12%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%1.55%
EPS Next Y7.43%
EPS Next 2Y8.37%
EPS Next 3Y9.04%
EPS Next 5Y9.57%
Revenue 1Y (TTM)-3%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%1.39%
Revenue Next Year3.95%
Revenue Next 2Y5%
Revenue Next 3Y5.5%
Revenue Next 5Y5.89%
EBIT growth 1Y13.76%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.32%
EBIT Next 3Y12.15%
EBIT Next 5Y-0.19%
FCF growth 1Y23.66%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y25.43%
OCF growth 3Y5.65%
OCF growth 5Y11.39%