AGCO CORP (AGCO)
US0010841023 - Common Stock
Taking everything into account, AGCO scores 4 out of 10 in our fundamental rating. AGCO was compared to 132 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AGCO had positive earnings in the past year.
AGCO had a positive operating cash flow in the past year.
AGCO had positive earnings in each of the past 5 years.
In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AGCO (1.26%) is worse than 60.00% of its industry peers.
AGCO has a Return On Equity of 4.10%. This is comparable to the rest of the industry: AGCO outperforms 43.08% of its industry peers.
With a Return On Invested Capital value of 4.99%, AGCO perfoms like the industry average, outperforming 40.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is significantly above the industry average of 10.90%.
The last Return On Invested Capital (4.99%) for AGCO is well below the 3 year average (16.46%), which needs to be investigated, but indicates that AGCO had better years and this may not be a problem.
| 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
AGCO has a worse Profit Margin (1.35%) than 60.00% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
AGCO has a Operating Margin of 4.73%. This is in the lower half of the industry: AGCO underperforms 61.54% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
The Gross Margin of AGCO (25.39%) is worse than 61.54% of its industry peers.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| 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
AGCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AGCO has less shares outstanding
AGCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AGCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AGCO's Altman-Z score of 2.34 is on the low side compared to the rest of the industry. AGCO is outperformed by 60.00% 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.
The Debt to FCF ratio of AGCO (11.40) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.88 indicates that AGCO is somewhat dependend on debt financing.
AGCO's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. AGCO is outperformed by 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.57
WACC8.72%
2.3 Liquidity
AGCO has a Current Ratio of 1.53. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AGCO (1.53) is worse than 76.92% of its industry peers.
A Quick Ratio of 0.72 indicates that AGCO may have some problems paying its short term obligations.
AGCO has a Quick ratio of 0.72. This is amonst the worse of the industry: AGCO underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
AGCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.67%.
The Earnings Per Share has been growing by 31.93% on average over the past years. This is a very strong growth
Looking at the last year, AGCO shows a very negative growth in Revenue. The Revenue has decreased by -13.34% in the last year.
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
AGCO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.13% yearly.
Based on estimates for the next years, AGCO will show a small growth in Revenue. The Revenue will grow by 0.32% on average per year.
EPS Next Y-51.12%
EPS Next 2Y-35.68%
EPS Next 3Y-19.63%
EPS Next 5Y-2.13%
Revenue Next Year-18.21%
Revenue Next 2Y-14.03%
Revenue Next 3Y-8.34%
Revenue Next 5Y0.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.04, which indicates a very decent valuation of AGCO.
89.23% 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 27.73, AGCO is valued rather cheaply.
AGCO is valuated correctly with a Price/Forward Earnings ratio of 14.54.
AGCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AGCO is cheaper than 79.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. AGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGCO indicates a somewhat cheap valuation: AGCO is cheaper than 72.31% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGCO indicates a somewhat cheap valuation: AGCO is cheaper than 73.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.79 | ||
| EV/EBITDA | 11.29 |
4.3 Compensation for Growth
AGCO has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AGCO's earnings are expected to decrease with -19.63% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-35.68%
EPS Next 3Y-19.63%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.28%.
AGCO's Dividend Yield is a higher than the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.34, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of AGCO grows each year by 59.11%, 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 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-35.68%
EPS Next 3Y-19.63%
AGCO CORP
NYSE:AGCO (12/20/2024, 8:04:00 PM)
After market: 93.95 +0.45 (+0.48%)93.5
+2.95 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners82.12%
Inst Owner Change3.65%
Ins Owners0.55%
Ins Owner Change0.87%
Market Cap6.98B
Analysts73.33
Price Target106.08 (13.45%)
Short Float %7.41%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)59.11%
DP160.74%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.41%
Min EPS beat(2)-38.3%
Max EPS beat(2)-14.53%
EPS beat(4)1
Avg EPS beat(4)-14.9%
Min EPS beat(4)-38.3%
Max EPS beat(4)0.95%
EPS beat(8)5
Avg EPS beat(8)1.4%
EPS beat(12)8
Avg EPS beat(12)9.51%
EPS beat(16)12
Avg EPS beat(16)17.53%
Revenue beat(2)0
Avg Revenue beat(2)-10.36%
Min Revenue beat(2)-12.13%
Max Revenue beat(2)-8.6%
Revenue beat(4)0
Avg Revenue beat(4)-8.11%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-4.17%
Revenue beat(8)3
Avg Revenue beat(8)-3.53%
Revenue beat(12)4
Avg Revenue beat(12)-3.09%
Revenue beat(16)7
Avg Revenue beat(16)-1.84%
PT rev (1m)-6.02%
PT rev (3m)-4.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.7%
EPS NY rev (1m)-3.61%
EPS NY rev (3m)-10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.84%
Revenue NY rev (1m)-1.63%
Revenue NY rev (3m)-3.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.04 | ||
| Fwd PE | 14.54 | ||
| P/S | 0.56 | ||
| P/FCF | 19.79 | ||
| P/OCF | 8.81 | ||
| P/B | 1.68 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | 11.29 |
EPS(TTM)9.31
EY9.96%
EPS(NY)6.43
Fwd EY6.88%
FCF(TTM)4.72
FCFY5.05%
OCF(TTM)10.61
OCFY11.35%
SpS168.46
BVpS55.58
TBVpS16.1
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.1% | ||
| ROCE | 6.44% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 8.1% | ||
| OM | 4.73% | ||
| PM (TTM) | 1.35% | ||
| GM | 25.39% | ||
| FCFM | 2.8% |
ROA(3y)9.61%
ROA(5y)7.09%
ROE(3y)24.78%
ROE(5y)18.61%
ROIC(3y)16.46%
ROIC(5y)13.46%
ROICexc(3y)18.71%
ROICexc(5y)15.5%
ROICexgc(3y)26.92%
ROICexgc(5y)23.48%
ROCE(3y)21.24%
ROCE(5y)17.42%
ROICexcg growth 3Y8.22%
ROICexcg growth 5Y11.71%
ROICexc growth 3Y18.76%
ROICexc growth 5Y19.05%
OM growth 3Y19.41%
OM growth 5Y17.32%
PM growth 3Y20.32%
PM growth 5Y21.59%
GM growth 3Y5.23%
GM growth 5Y4.18%
F-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 137.54% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.68% | ||
| Profit Quality | 207.59% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.34 |
F-Score3
WACC8.72%
ROIC/WACC0.57
Cap/Depr(3y)139.87%
Cap/Depr(5y)123.87%
Cap/Sales(3y)3.03%
Cap/Sales(5y)3.01%
Profit Quality(3y)48%
Profit Quality(5y)125.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.67%
EPS 3Y40.56%
EPS 5Y31.93%
EPS Q2Q%-82.87%
EPS Next Y-51.12%
EPS Next 2Y-35.68%
EPS Next 3Y-19.63%
EPS Next 5Y-2.13%
Revenue 1Y (TTM)-13.34%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Sales Q2Q%-24.78%
Revenue Next Year-18.21%
Revenue Next 2Y-14.03%
Revenue Next 3Y-8.34%
Revenue Next 5Y0.32%
EBIT growth 1Y-66.66%
EBIT growth 3Y38.94%
EBIT growth 5Y27.93%
EBIT Next Year-25.98%
EBIT Next 3Y-9.66%
EBIT Next 5Y-1.26%
FCF growth 1Y2059.44%
FCF growth 3Y-2.26%
FCF growth 5Y8.3%
OCF growth 1Y144.87%
OCF growth 3Y7.16%
OCF growth 5Y13.11%