AGCO CORP (AGCO) Stock Fundamental Analysis
NYSE:AGCO - New York Stock Exchange, Inc. - 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. While AGCO is still in line with the averages on profitability rating, there are concerns on its financial health. 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
In the past year AGCO was profitable.
AGCO had a positive operating cash flow in the past year.
AGCO had positive earnings in each of the past 5 years.
AGCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AGCO (1.26%) is worse than 60.63% of its industry peers.
Looking at the Return On Equity, with a value of 4.10%, AGCO is in line with its industry, outperforming 42.52% of the companies in the same industry.
AGCO has a Return On Invested Capital of 4.99%. This is in the lower half of the industry: AGCO underperforms 60.63% of its industry peers.
AGCO had an Average Return On Invested Capital over the past 3 years of 16.46%. This is significantly above the industry average of 11.19%.
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
AGCO has a worse Profit Margin (1.35%) than 61.42% 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 62.99% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
AGCO has a Gross Margin of 25.39%. This is in the lower half of the industry: AGCO underperforms 62.99% 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AGCO has less shares outstanding
AGCO has less shares outstanding than it did 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 2.38 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AGCO has a Altman-Z score of 2.38. This is in the lower half of the industry: AGCO underperforms 63.78% of its industry peers.
The Debt to FCF ratio of AGCO is 11.40, which is on the high side as it means it would take AGCO, 11.40 years of fcf income to pay off 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.
With a Debt to Equity ratio value of 0.88, AGCO is not doing good in the industry: 80.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.54
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.53 indicates that AGCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, AGCO is doing worse than 76.38% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that AGCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, AGCO is not doing good in the industry: 85.83% of the companies in the same industry are doing better.
| 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
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
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-18.3%
Revenue Next 2Y-16.62%
Revenue Next 3Y-10.37%
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
AGCO is valuated reasonably with a Price/Earnings ratio of 11.08.
90.55% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (28.29), we can say AGCO is valued rather cheaply.
The Price/Forward Earnings ratio is 16.03, which indicates a correct valuation of AGCO.
Based on the Price/Forward Earnings ratio, AGCO is valued a bit cheaper than the industry average as 77.17% of the companies are valued more expensively.
AGCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
67.72% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AGCO is valued a bit cheaper than the industry average as 70.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.83 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
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)0.35
EPS Next 2Y-35.68%
EPS Next 3Y-19.63%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.16%.
AGCO's Dividend Yield is a higher than the industry average which is at 1.65.
Compared to an average S&P500 Dividend Yield of 2.28, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of AGCO is nicely growing with an annual growth rate of 59.11%!
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)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 (1/21/2025, 8:04:00 PM)
After market: 103.13 0 (0%)103.13
+1.44 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners82.12%
Inst Owner Change-0.12%
Ins Owners0.55%
Ins Owner Change0.49%
Market Cap7.70B
Analysts72.73
Price Target106.32 (3.09%)
Short Float %8%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend6.12
Dividend Growth(5Y)59.11%
DP160.74%
Div Incr Years10
Div Non Decr Years10
Ex-DateN/A
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)0.22%
PT rev (3m)-4.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.84%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 16.03 | ||
| P/S | 0.61 | ||
| P/FCF | 21.83 | ||
| P/OCF | 9.72 | ||
| P/B | 1.86 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)9.31
EY9.03%
EPS(NY)6.43
Fwd EY6.24%
FCF(TTM)4.72
FCFY4.58%
OCF(TTM)10.61
OCFY10.29%
SpS168.46
BVpS55.58
TBVpS16.1
PEG (NY)N/A
PEG (5Y)0.35
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 | 2.38 |
F-Score3
WACC9.28%
ROIC/WACC0.54
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-18.3%
Revenue Next 2Y-16.62%
Revenue Next 3Y-10.37%
Revenue Next 5Y0.32%
EBIT growth 1Y-66.66%
EBIT growth 3Y38.94%
EBIT growth 5Y27.93%
EBIT Next Year-25.32%
EBIT Next 3Y-12.22%
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%