AGCO CORP (AGCO) Stock Fundamental Analysis
NYSE:AGCO - New York Stock Exchange, Inc. - US0010841023 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AGCO. AGCO was compared to 128 industry peers in the Machinery industry. AGCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. AGCO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AGCO had positive earnings in the past year.
In the past year AGCO had a positive cash flow from operations.
AGCO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AGCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGCO (-3.80%) is worse than 72.66% of its industry peers.
AGCO has a worse Return On Equity (-11.35%) than 73.44% of its industry peers.
AGCO has a better Return On Invested Capital (10.29%) than 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is significantly above the industry average of 10.69%.
The 3 year average ROIC (16.09%) for AGCO is well above the current ROIC(10.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.8% | ||
| ROE | -11.35% | ||
| ROIC | 10.29% |
ROA(3y)5.09%
ROA(5y)6.01%
ROE(3y)12.24%
ROE(5y)15.46%
ROIC(3y)16.09%
ROIC(5y)14.59%
1.3 Margins
AGCO has a Operating Margin (7.95%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AGCO has grown nicely.
AGCO has a Gross Margin of 24.86%. This is in the lower half of the industry: AGCO underperforms 64.06% of its industry peers.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.95% | ||
| PM (TTM) | N/A | ||
| GM | 24.86% |
OM growth 3Y-4.47%
OM growth 5Y6.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.49%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
AGCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AGCO remains at a similar level compared to 1 year ago.
The number of shares outstanding for AGCO has been reduced compared to 5 years ago.
Compared to 1 year ago, AGCO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.68 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AGCO (2.68) is comparable to the rest of the industry.
The Debt to FCF ratio of AGCO is 8.93, which is on the high side as it means it would take AGCO, 8.93 years of fcf income to pay off all of its debts.
AGCO has a Debt to FCF ratio of 8.93. This is comparable to the rest of the industry: AGCO outperforms 41.41% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that AGCO is somewhat dependend on debt financing.
AGCO has a worse Debt to Equity ratio (0.62) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.93 | ||
| Altman-Z | 2.68 |
ROIC/WACC1.04
WACC9.94%
2.3 Liquidity
AGCO has a Current Ratio of 1.34. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.34, AGCO is doing worse than 81.25% of the companies in the same industry.
AGCO has a Quick Ratio of 1.34. This is a bad value and indicates that AGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
AGCO has a worse Quick ratio (0.63) than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
AGCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.77%.
AGCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.05% yearly.
The Revenue for AGCO has decreased by -19.08% in the past year. This is quite bad
Measured over the past years, AGCO shows a small growth in Revenue. The Revenue has been growing by 5.22% on average per year.
EPS 1Y (TTM)-51.77%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-47.88%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-24.03%
3.2 Future
The Earnings Per Share is expected to grow by 15.57% on average over the next years. This is quite good.
AGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
EPS Next Y-45.16%
EPS Next 2Y-7.83%
EPS Next 3Y1.37%
EPS Next 5Y15.57%
Revenue Next Year-19.97%
Revenue Next 2Y-7.62%
Revenue Next 3Y-3.1%
Revenue Next 5Y3.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 11.17, the valuation of AGCO can be described as very reasonable.
Based on the Price/Earnings ratio, AGCO is valued cheaply inside the industry as 83.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.79. AGCO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 20.37, AGCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGCO is on the same level as its industry peers.
AGCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
86.72% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
AGCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.07 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-7.83%
EPS Next 3Y1.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, AGCO has a reasonable but not impressive dividend return.
In the last 3 months the price of AGCO has falen by -20.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AGCO's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.51, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
On average, the dividend of AGCO grows each year by 42.16%, which is quite nice.
AGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
AGCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)42.16%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
The earnings of AGCO are negative and hence is the payout ratio. AGCO will probably not be able to sustain this dividend level.
The dividend of AGCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-64.29%
EPS Next 2Y-7.83%
EPS Next 3Y1.37%
83.8
-1.94 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.94%
Inst Owner Change-0.3%
Ins Owners0.66%
Ins Owner Change7.58%
Market Cap6.25B
Analysts70.91
Price Target104.89 (25.17%)
Short Float %7.43%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend3.67
Dividend Growth(5Y)42.16%
DP-64.29%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.1%
Min EPS beat(2)-38.3%
Max EPS beat(2)6.09%
EPS beat(4)2
Avg EPS beat(4)-11.44%
Min EPS beat(4)-38.3%
Max EPS beat(4)6.09%
EPS beat(8)5
Avg EPS beat(8)0.63%
EPS beat(12)8
Avg EPS beat(12)4.13%
EPS beat(16)12
Avg EPS beat(16)15.69%
Revenue beat(2)0
Avg Revenue beat(2)-11.33%
Min Revenue beat(2)-12.13%
Max Revenue beat(2)-10.53%
Revenue beat(4)0
Avg Revenue beat(4)-8.85%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-4.17%
Revenue beat(8)2
Avg Revenue beat(8)-5.09%
Revenue beat(12)3
Avg Revenue beat(12)-4.08%
Revenue beat(16)6
Avg Revenue beat(16)-2.84%
PT rev (1m)-0.56%
PT rev (3m)-1.34%
EPS NQ rev (1m)-53.28%
EPS NQ rev (3m)-90.15%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-36.06%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-17.57%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 20.37 | ||
| P/S | 0.54 | ||
| P/FCF | 21.07 | ||
| P/OCF | 9.06 | ||
| P/B | 1.67 | ||
| P/tB | 5.24 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)7.5
EY8.95%
EPS(NY)4.11
Fwd EY4.91%
FCF(TTM)3.98
FCFY4.75%
OCF(TTM)9.25
OCFY11.04%
SpS156.37
BVpS50.19
TBVpS16
PEG (NY)N/A
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.8% | ||
| ROE | -11.35% | ||
| ROCE | 12.59% | ||
| ROIC | 10.29% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 17.87% | ||
| OM | 7.95% | ||
| PM (TTM) | N/A | ||
| GM | 24.86% | ||
| FCFM | 2.54% |
ROA(3y)5.09%
ROA(5y)6.01%
ROE(3y)12.24%
ROE(5y)15.46%
ROIC(3y)16.09%
ROIC(5y)14.59%
ROICexc(3y)17.91%
ROICexc(5y)16.77%
ROICexgc(3y)25.88%
ROICexgc(5y)25.33%
ROCE(3y)19.52%
ROCE(5y)17.75%
ROICexcg growth 3Y-11.68%
ROICexcg growth 5Y2.47%
ROICexc growth 3Y-13.04%
ROICexc growth 5Y3.12%
OM growth 3Y-4.47%
OM growth 5Y6.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.49%
GM growth 5Y2.53%
F-Score3
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.93 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 118.39% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | 7.39 | ||
| Cash Conversion | 54.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.68 |
F-Score3
WACC9.94%
ROIC/WACC1.04
Cap/Depr(3y)147.42%
Cap/Depr(5y)127.45%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.77%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-47.88%
EPS Next Y-45.16%
EPS Next 2Y-7.83%
EPS Next 3Y1.37%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-24.03%
Revenue Next Year-19.97%
Revenue Next 2Y-7.62%
Revenue Next 3Y-3.1%
Revenue Next 5Y3.24%
EBIT growth 1Y-45.97%
EBIT growth 3Y-3%
EBIT growth 5Y11.67%
EBIT Next Year-6.9%
EBIT Next 3Y7.84%
EBIT Next 5Y14.3%
FCF growth 1Y-49.3%
FCF growth 3Y-8.75%
FCF growth 5Y-6.83%
OCF growth 1Y-37.46%
OCF growth 3Y1.48%
OCF growth 5Y-0.17%