ADECOAGRO SA (AGRO) Stock Fundamental Analysis
USA - NYSE:AGRO - LU0584671464 - Common Stock
8.21 USD
+0.09 (+1.11%)
8.21 USD
0 (0%)
AGRO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. There are concerns on the financial health of AGRO while its profitability can be described as average. AGRO 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 AGRO was profitable.
In the past year AGRO had a positive cash flow from operations.
Each year in the past 5 years AGRO has been profitable.
In the past 5 years AGRO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.10%, AGRO is in line with its industry, outperforming 42.70% of the companies in the same industry.
AGRO's Return On Equity of 2.62% is in line compared to the rest of the industry. AGRO outperforms 42.70% of its industry peers.
AGRO's Return On Invested Capital of 0.90% is in line compared to the rest of the industry. AGRO outperforms 42.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGRO is significantly below the industry average of 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.62% | ||
| ROIC | 0.9% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.58%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
1.3 Margins
AGRO has a Profit Margin (2.33%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AGRO has declined.
AGRO's Operating Margin of 2.16% is in line compared to the rest of the industry. AGRO outperforms 43.82% of its industry peers.
In the last couple of years the Operating Margin of AGRO has declined.
AGRO has a Gross Margin of 18.66%. This is comparable to the rest of the industry: AGRO outperforms 49.44% of its industry peers.
AGRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.16% | ||
| PM (TTM) | 2.33% | ||
| GM | 18.66% |
OM growth 3Y-13.04%
OM growth 5Y-6.66%
PM growth 3Y-19.23%
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-4.39%
2. Health
2.1 Basic Checks
AGRO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AGRO has less shares outstanding than it did 1 year ago.
AGRO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AGRO has been reduced compared to a year ago.
2.2 Solvency
AGRO has an Altman-Z score of 1.24. This is a bad value and indicates that AGRO is not financially healthy and even has some risk of bankruptcy.
AGRO has a worse Altman-Z score (1.24) than 66.29% of its industry peers.
AGRO has a debt to FCF ratio of 16.91. This is a negative value and a sign of low solvency as AGRO would need 16.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.91, AGRO is in line with its industry, outperforming 52.81% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that AGRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, AGRO is in line with its industry, outperforming 43.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 16.91 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.23
WACC3.95%
2.3 Liquidity
AGRO has a Current Ratio of 1.90. This is a normal value and indicates that AGRO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AGRO (1.90) is better than 61.80% of its industry peers.
A Quick Ratio of 0.95 indicates that AGRO may have some problems paying its short term obligations.
With a Quick ratio value of 0.95, AGRO perfoms like the industry average, outperforming 57.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.43%.
Measured over the past years, AGRO shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.45% on average per year.
Looking at the last year, AGRO shows a quite strong growth in Revenue. The Revenue has grown by 17.51% in the last year.
The Revenue has been growing by 10.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-82.43%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-289.25%
Revenue 1Y (TTM)17.51%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-6.09%
3.2 Future
The Earnings Per Share is expected to decrease by -8.94% on average over the next years.
Based on estimates for the next years, AGRO will show a decrease in Revenue. The Revenue will decrease by -2.74% on average per year.
EPS Next Y-40.5%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
EPS Next 5YN/A
Revenue Next Year-9.56%
Revenue Next 2Y-4.9%
Revenue Next 3Y-2.74%
Revenue Next 5YN/A
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 17.47, which indicates a rather expensive current valuation of AGRO.
AGRO's Price/Earnings ratio is in line with the industry average.
AGRO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
AGRO is valuated reasonably with a Price/Forward Earnings ratio of 10.66.
84.27% of the companies in the same industry are more expensive than AGRO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.71. AGRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGRO indicates a rather cheap valuation: AGRO is cheaper than 80.90% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGRO indicates a somewhat cheap valuation: AGRO is cheaper than 79.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
AGRO's earnings are expected to decrease with -8.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
5. Dividend
5.1 Amount
AGRO has a Yearly Dividend Yield of 4.16%, which is a nice return.
AGRO's Dividend Yield is rather good when compared to the industry average which is at 5.03. AGRO pays more dividend than 80.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AGRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
AGRO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AGRO pays out 97.37% of its income as dividend. This is not a sustainable payout ratio.
DP97.37%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
8.21
+0.09 (+1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners37.3%
Inst Owner Change-64.89%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap821.57M
Analysts48
Price Target11.28 (37.39%)
Short Float %4.46%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP97.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-97.2%
Min EPS beat(2)-152.79%
Max EPS beat(2)-41.61%
EPS beat(4)0
Avg EPS beat(4)-64.14%
Min EPS beat(4)-152.79%
Max EPS beat(4)-1.96%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.33%
Min Revenue beat(2)-9.25%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-9.25%
Max Revenue beat(4)-0.44%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.81%
PT rev (3m)-8.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.36%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)-7.71%
Revenue NQ rev (3m)-7.71%
Revenue NY rev (1m)-4.17%
Revenue NY rev (3m)-6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.53 | ||
| P/FCF | 10.95 | ||
| P/OCF | 2.54 | ||
| P/B | 0.6 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)0.47
EY5.72%
EPS(NY)0.77
Fwd EY9.38%
FCF(TTM)0.75
FCFY9.13%
OCF(TTM)3.23
OCFY39.38%
SpS15.4
BVpS13.71
TBVpS13.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.62% | ||
| ROCE | 1.21% | ||
| ROIC | 0.9% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 0.98% | ||
| OM | 2.16% | ||
| PM (TTM) | 2.33% | ||
| GM | 18.66% | ||
| FCFM | 4.87% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.58%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
ROICexc(3y)2.33%
ROICexc(5y)2.54%
ROICexgc(3y)2.36%
ROICexgc(5y)2.57%
ROCE(3y)2.73%
ROCE(5y)2.93%
ROICexcg growth 3Y-15.11%
ROICexcg growth 5Y-3.51%
ROICexc growth 3Y-15.02%
ROICexc growth 5Y-3.43%
OM growth 3Y-13.04%
OM growth 5Y-6.66%
PM growth 3Y-19.23%
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-4.39%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 16.91 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 91.38% | ||
| Cap/Sales | 16.13% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 106.01% | ||
| Profit Quality | 208.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.24 |
F-Score6
WACC3.95%
ROIC/WACC0.23
Cap/Depr(3y)88.64%
Cap/Depr(5y)92.09%
Cap/Sales(3y)17.92%
Cap/Sales(5y)18.87%
Profit Quality(3y)94.78%
Profit Quality(5y)4082.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-82.43%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-289.25%
EPS Next Y-40.5%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
EPS Next 5YN/A
Revenue 1Y (TTM)17.51%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-6.09%
Revenue Next Year-9.56%
Revenue Next 2Y-4.9%
Revenue Next 3Y-2.74%
Revenue Next 5YN/A
EBIT growth 1Y-57.71%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year64.59%
EBIT Next 3Y21.12%
EBIT Next 5YN/A
FCF growth 1Y-40.96%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y-10.49%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%