AGCO CORP (AGCO) Stock Fundamental Analysis
NYSE:AGCO - New York Stock Exchange, Inc. - US0010841023 - Common Stock - Currency: USD
Taking everything into account, AGCO scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AGCO was profitable.
In the past year AGCO had a positive cash flow from operations.
Of the past 5 years AGCO 4 years were profitable.
In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AGCO (-3.80%) is worse than 71.20% of its industry peers.
AGCO has a worse Return On Equity (-11.35%) than 72.80% of its industry peers.
AGCO's Return On Invested Capital of 4.77% is on the low side compared to the rest of the industry. AGCO is outperformed by 63.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGCO is significantly above the industry average of 11.00%.
The last Return On Invested Capital (4.77%) for AGCO is well below the 3 year average (16.09%), which needs to be investigated, but indicates that AGCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.8% | ||
| ROE | -11.35% | ||
| ROIC | 4.77% |
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 of 3.68%. This is in the lower half of the industry: AGCO underperforms 67.20% of its industry peers.
In the last couple of years the Operating Margin of AGCO has grown nicely.
The Gross Margin of AGCO (24.86%) is worse than 64.00% of its industry peers.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGCO is still creating some value.
AGCO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AGCO has been reduced compared to 5 years ago.
AGCO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.63 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.63, AGCO is in line with its industry, outperforming 47.20% of the companies in the same 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 42.40% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that AGCO is somewhat dependend on debt financing.
AGCO's Debt to Equity ratio of 0.62 is on the low side compared to the rest of the industry. AGCO is outperformed by 67.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.93 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.46
WACC10.31%
2.3 Liquidity
A Current Ratio of 1.34 indicates that AGCO should not have too much problems paying its short term obligations.
AGCO's Current ratio of 1.34 is on the low side compared to the rest of the industry. AGCO is outperformed by 80.80% of its industry peers.
A Quick Ratio of 0.63 indicates that AGCO may have some problems paying its short term obligations.
The Quick ratio of AGCO (0.63) is worse than 89.60% 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%.
The Earnings Per Share has been growing by 11.05% on average over the past years. This is quite good.
Looking at the last year, AGCO shows a very negative growth in Revenue. The Revenue has decreased by -19.08% in the last year.
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 16.81% on average over the next years. This is quite good.
Based on estimates for the next years, AGCO will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y-41.92%
EPS Next 2Y-7.54%
EPS Next 3Y0.5%
EPS Next 5Y16.81%
Revenue Next Year-17.8%
Revenue Next 2Y-7.73%
Revenue Next 3Y-0.89%
Revenue Next 5Y5.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.19, AGCO is valued correctly.
84.00% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
AGCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 22.71, which indicates a rather expensive current valuation of AGCO.
The rest of the industry has a similar Price/Forward Earnings ratio as AGCO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, AGCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 22.71 |
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 65.60% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AGCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.9 | ||
| EV/EBITDA | 12.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-7.54%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, AGCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, AGCO pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of AGCO is nicely growing with an annual growth rate of 42.12%!
AGCO has paid a dividend for at least 10 years, which is a reliable track record.
AGCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)42.12%
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.
AGCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-64.29%
EPS Next 2Y-7.54%
EPS Next 3Y0.5%
98.92
-2.82 (-2.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners82.12%
Inst Owner Change13.86%
Ins Owners0.55%
Ins Owner Change7.58%
Market Cap7.38B
Analysts72.73
Price Target107.53 (8.7%)
Short Float %6.95%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend3.66
Dividend Growth(5Y)42.12%
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)1.14%
PT rev (3m)-4.74%
EPS NQ rev (1m)-69.27%
EPS NQ rev (3m)-81.84%
EPS NY rev (1m)-32.28%
EPS NY rev (3m)-36.73%
Revenue NQ rev (1m)-17.65%
Revenue NQ rev (3m)-28.54%
Revenue NY rev (1m)-3.38%
Revenue NY rev (3m)-11.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 22.71 | ||
| P/S | 0.63 | ||
| P/FCF | 24.9 | ||
| P/OCF | 10.7 | ||
| P/B | 1.97 | ||
| P/tB | 6.19 | ||
| EV/EBITDA | 12.52 |
EPS(TTM)7.5
EY7.58%
EPS(NY)4.36
Fwd EY4.4%
FCF(TTM)3.97
FCFY4.02%
OCF(TTM)9.24
OCFY9.34%
SpS156.22
BVpS50.14
TBVpS15.99
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.8% | ||
| ROE | -11.35% | ||
| ROCE | 5.83% | ||
| ROIC | 4.77% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 8.28% | ||
| OM | 3.68% | ||
| 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 | 3.05 | ||
| Cap/Depr | 118.39% | ||
| Cap/Sales | 3.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 2.63 |
F-Score3
WACC10.31%
ROIC/WACC0.46
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-41.92%
EPS Next 2Y-7.54%
EPS Next 3Y0.5%
EPS Next 5Y16.81%
Revenue 1Y (TTM)-19.08%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-24.03%
Revenue Next Year-17.8%
Revenue Next 2Y-7.73%
Revenue Next 3Y-0.89%
Revenue Next 5Y5.61%
EBIT growth 1Y-74.97%
EBIT growth 3Y-3%
EBIT growth 5Y11.67%
EBIT Next Year-2.28%
EBIT Next 3Y17.78%
EBIT Next 5Y12.68%
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%