ADECOAGRO SA (AGRO) Stock Fundamental Analysis
NYSE:AGRO - New York Stock Exchange, Inc. - LU0584671464 - Common Stock - Currency: USD
AGRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. AGRO has only an average score on both its financial health and profitability. AGRO is cheap, 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.
Of the past 5 years AGRO 4 years were profitable.
AGRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.91%, AGRO is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
AGRO has a Return On Equity of 11.35%. This is in the better half of the industry: AGRO outperforms 67.06% of its industry peers.
The Return On Invested Capital of AGRO (2.04%) is worse than 61.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGRO is significantly below the industry average of 9.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 11.35% | ||
| ROIC | 2.04% |
ROA(3y)5.23%
ROA(5y)3.13%
ROE(3y)13.64%
ROE(5y)8.18%
ROIC(3y)2.32%
ROIC(5y)2.27%
1.3 Margins
AGRO has a Profit Margin of 11.39%. This is amongst the best in the industry. AGRO outperforms 87.06% of its industry peers.
AGRO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.30%, AGRO is in line with its industry, outperforming 55.29% of the companies in the same industry.
In the last couple of years the Operating Margin of AGRO has grown nicely.
AGRO's Gross Margin of 20.63% is in line compared to the rest of the industry. AGRO outperforms 48.24% of its industry peers.
In the last couple of years the Gross Margin of AGRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| PM (TTM) | 11.39% | ||
| GM | 20.63% |
OM growth 3Y4.31%
OM growth 5Y16.11%
PM growth 3Y610.55%
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5Y1.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGRO is destroying value.
The number of shares outstanding for AGRO has been reduced compared to 1 year ago.
AGRO has less shares outstanding than it did 5 years ago.
AGRO has a better debt/assets ratio than last year.
2.2 Solvency
AGRO has an Altman-Z score of 1.40. This is a bad value and indicates that AGRO is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AGRO (1.40) is worse than 68.24% of its industry peers.
AGRO has a debt to FCF ratio of 15.07. This is a negative value and a sign of low solvency as AGRO would need 15.07 years to pay back of all of its debts.
The Debt to FCF ratio of AGRO (15.07) is comparable to the rest of the industry.
AGRO has a Debt/Equity ratio of 0.71. This is a neutral value indicating AGRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, AGRO is not doing good in the industry: 61.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 15.07 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.4
WACC5.08%
2.3 Liquidity
A Current Ratio of 2.40 indicates that AGRO has no problem at all paying its short term obligations.
AGRO has a Current ratio of 2.40. This is in the better half of the industry: AGRO outperforms 70.59% of its industry peers.
AGRO has a Quick Ratio of 1.09. This is a normal value and indicates that AGRO is financially healthy and should not expect problems in meeting its short term obligations.
AGRO's Quick ratio of 1.09 is fine compared to the rest of the industry. AGRO outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.30% over the past year.
AGRO shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
Measured over the past years, AGRO shows a quite strong growth in Revenue. The Revenue has been growing by 10.42% on average per year.
EPS 1Y (TTM)10.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-66.27%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y16.4%
Revenue growth 5Y10.42%
Sales Q2Q%22.22%
3.2 Future
AGRO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.98% yearly.
Based on estimates for the next years, AGRO will show a small growth in Revenue. The Revenue will grow by 1.74% on average per year.
EPS Next Y-2.46%
EPS Next 2Y-10.07%
EPS Next 3Y-6.98%
EPS Next 5YN/A
Revenue Next Year11.36%
Revenue Next 2Y5.56%
Revenue Next 3Y1.74%
Revenue Next 5YN/A
3.3 Evolution
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
Based on the Price/Earnings ratio of 8.43, the valuation of AGRO can be described as reasonable.
AGRO's Price/Earnings ratio is rather cheap when compared to the industry. AGRO is cheaper than 90.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, AGRO is valued rather cheaply.
AGRO is valuated reasonably with a Price/Forward Earnings ratio of 10.42.
AGRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGRO is cheaper than 89.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, AGRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
AGRO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGRO is cheaper than 85.88% of the companies in the same industry.
AGRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGRO is cheaper than 69.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.51 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
The decent profitability rating of AGRO may justify a higher PE ratio.
A cheap valuation may be justified as AGRO's earnings are expected to decrease with -6.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.07%
EPS Next 3Y-6.98%
5. Dividend
5.1 Amount
AGRO has a Yearly Dividend Yield of 3.19%.
AGRO's Dividend Yield is a higher than the industry average which is at 3.94.
Compared to an average S&P500 Dividend Yield of 2.27, AGRO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
22.08% of the earnings are spent on dividend by AGRO. This is a low number and sustainable payout ratio.
DP22.08%
EPS Next 2Y-10.07%
EPS Next 3Y-6.98%
10.79
+0.06 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change-39.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.09B
Analysts75.71
Price Target13.62 (26.23%)
Short Float %1.24%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend0.33
Dividend Growth(5Y)N/A
DP22.08%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-1.58%
PT rev (3m)-1.58%
EPS NQ rev (1m)12.2%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.71%
EPS NY rev (3m)-12.7%
Revenue NQ rev (1m)16.28%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.78 | ||
| P/FCF | 13.51 | ||
| P/OCF | 3.18 | ||
| P/B | 0.78 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)1.28
EY11.86%
EPS(NY)1.04
Fwd EY9.59%
FCF(TTM)0.8
FCFY7.4%
OCF(TTM)3.4
OCFY31.48%
SpS13.8
BVpS13.85
TBVpS13.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 11.35% | ||
| ROCE | 2.65% | ||
| ROIC | 2.04% | ||
| ROICexc | 2.2% | ||
| ROICexgc | 2.23% | ||
| OM | 5.3% | ||
| PM (TTM) | 11.39% | ||
| GM | 20.63% | ||
| FCFM | 5.79% |
ROA(3y)5.23%
ROA(5y)3.13%
ROE(3y)13.64%
ROE(5y)8.18%
ROIC(3y)2.32%
ROIC(5y)2.27%
ROICexc(3y)2.81%
ROICexc(5y)2.71%
ROICexgc(3y)2.85%
ROICexgc(5y)2.75%
ROCE(3y)3.02%
ROCE(5y)2.96%
ROICexcg growth 3Y14.69%
ROICexcg growth 5Y22.37%
ROICexc growth 3Y14.77%
ROICexc growth 5Y22.46%
OM growth 3Y4.31%
OM growth 5Y16.11%
PM growth 3Y610.55%
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5Y1.81%
F-Score8
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 15.07 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 89.17% | ||
| Cap/Sales | 18.83% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 93.2% | ||
| Profit Quality | 50.8% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.4 |
F-Score8
WACC5.08%
ROIC/WACC0.4
Cap/Depr(3y)92.32%
Cap/Depr(5y)98.99%
Cap/Sales(3y)18.42%
Cap/Sales(5y)21.33%
Profit Quality(3y)105.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-66.27%
EPS Next Y-2.46%
EPS Next 2Y-10.07%
EPS Next 3Y-6.98%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y16.4%
Revenue growth 5Y10.42%
Sales Q2Q%22.22%
Revenue Next Year11.36%
Revenue Next 2Y5.56%
Revenue Next 3Y1.74%
Revenue Next 5YN/A
EBIT growth 1Y-32.57%
EBIT growth 3Y21.41%
EBIT growth 5Y28.22%
EBIT Next Year72.65%
EBIT Next 3Y18.52%
EBIT Next 5YN/A
FCF growth 1Y70.25%
FCF growth 3Y33.71%
FCF growth 5Y140.1%
OCF growth 1Y26.79%
OCF growth 3Y19.15%
OCF growth 5Y14.76%