AGCO CORP (AGCO)
US0010841023 - Common Stock
AGCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 131 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AGCO was profitable.
AGCO had a positive operating cash flow in the past year.
In the past 5 years AGCO has always been profitable.
Each year in the past 5 years AGCO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.26%, AGCO is not doing good in the industry: 61.42% of the companies in the same industry are doing better.
AGCO's Return On Equity of 4.10% is in line compared to the rest of the industry. AGCO outperforms 42.52% of its industry peers.
AGCO's Return On Invested Capital of 4.99% is in line compared to the rest of the industry. AGCO outperforms 41.73% 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 11.01%.
The 3 year average ROIC (16.46%) for AGCO is well above the current ROIC(4.99%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.1% | ||
| ROIC | 4.99% |
ROA(3y)9.61%
ROA(5y)7.09%
ROE(3y)24.78%
ROE(5y)18.61%
ROIC(3y)16.46%
ROIC(5y)13.46%
1.3 Margins
The Profit Margin of AGCO (1.35%) is worse than 61.42% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
AGCO has a worse Operating Margin (4.73%) than 62.20% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
The Gross Margin of AGCO (25.39%) is comparable to the rest of the industry.
AGCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.73% | ||
| PM (TTM) | 1.35% | ||
| GM | 25.39% |
OM growth 3Y19.41%
OM growth 5Y17.32%
PM growth 3Y20.32%
PM growth 5Y21.59%
GM growth 3Y5.23%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AGCO is creating value.
AGCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AGCO has been reduced compared to 5 years ago.
The debt/assets ratio for AGCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.33 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AGCO has a worse Altman-Z score (2.33) than 61.42% of its industry peers.
AGCO has a debt to FCF ratio of 11.40. This is a negative value and a sign of low solvency as AGCO would need 11.40 years to pay back of all of its debts.
AGCO has a Debt to FCF ratio (11.40) which is in line with its industry peers.
A Debt/Equity ratio of 0.88 indicates that AGCO is somewhat dependend on debt financing.
AGCO has a worse Debt to Equity ratio (0.88) than 81.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.57
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.53 indicates that AGCO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.53, AGCO is not doing good in the industry: 76.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that AGCO may have some problems paying its short term obligations.
AGCO's Quick ratio of 0.72 is on the low side compared to the rest of the industry. AGCO is outperformed by 84.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for AGCO have decreased strongly by -42.67% in the last year.
AGCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.93% yearly.
The Revenue for AGCO has decreased by -13.34% in the past year. This is quite bad
The Revenue has been growing by 9.04% on average over the past years. This is quite good.
EPS 1Y (TTM)-42.67%
EPS 3Y40.56%
EPS 5Y31.93%
EPS Q2Q%-82.87%
Revenue 1Y (TTM)-13.34%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Sales Q2Q%-24.78%
3.2 Future
The Earnings Per Share is expected to decrease by -2.13% on average over the next years.
The Revenue is expected to grow by 0.32% on average over the next years.
EPS Next Y-49.29%
EPS Next 2Y-33.46%
EPS Next 3Y-17.28%
EPS Next 5Y-2.13%
Revenue Next Year-16.86%
Revenue Next 2Y-12.87%
Revenue Next 3Y-7.18%
Revenue Next 5Y0.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 10.47, the valuation of AGCO can be described as reasonable.
88.19% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.96, AGCO is valued rather cheaply.
The Price/Forward Earnings ratio is 14.15, which indicates a correct valuation of AGCO.
AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 83.46% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AGCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGCO is valued a bit cheaper than 74.02% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGCO is valued a bit cheaper than the industry average as 74.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The decent profitability rating of AGCO may justify a higher PE ratio.
AGCO's earnings are expected to decrease with -17.28% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-33.46%
EPS Next 3Y-17.28%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.26%.
AGCO's Dividend Yield is a higher than the industry average which is at 1.54.
With a Dividend Yield of 1.26, AGCO pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
On average, the dividend of AGCO grows each year by 59.11%, which is quite nice.
AGCO has paid a dividend for at least 10 years, which is a reliable track record.
AGCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)59.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
160.74% of the earnings are spent on dividend by AGCO. This is not a sustainable payout ratio.
AGCO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP160.74%
EPS Next 2Y-33.46%
EPS Next 3Y-17.28%
AGCO CORP
NYSE:AGCO (11/21/2024, 4:15:00 PM)
After market: 97.45 0 (0%)97.45
+5.47 (+5.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 10.47 | ||
| Fwd PE | 14.15 | ||
| 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)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.73% | ||
| PM (TTM) | 1.35% | ||
| GM | 25.39% | ||
| 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 | ||
| 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)-42.67%
EPS 3Y40.56%
EPS 5Y
EPS Q2Q%
EPS Next Y-49.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.34%
Revenue growth 3Y16.35%
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