ADECOAGRO SA (AGRO) Stock Fundamental Analysis
NYSE:AGRO - New York Stock Exchange, Inc. - LU0584671464 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AGRO. AGRO was compared to 91 industry peers in the Food Products industry. AGRO has only an average score on both its financial health and profitability. 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.
In the past 5 years AGRO has always been profitable.
Each year in the past 5 years AGRO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.88%, AGRO perfoms like the industry average, outperforming 45.05% of the companies in the same industry.
The Return On Equity of AGRO (4.44%) is comparable to the rest of the industry.
AGRO has a Return On Invested Capital (1.22%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGRO is significantly below the industry average of 28.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 4.44% | ||
| ROIC | 1.22% |
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
Looking at the Profit Margin, with a value of 4.03%, AGRO is in the better half of the industry, outperforming 63.74% of the companies in the same industry.
AGRO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.93%, AGRO perfoms like the industry average, outperforming 48.35% of the companies in the same industry.
In the last couple of years the Operating Margin of AGRO has declined.
With a Gross Margin value of 18.85%, AGRO perfoms like the industry average, outperforming 48.35% of the companies in the same industry.
AGRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.93% | ||
| PM (TTM) | 4.03% | ||
| GM | 18.85% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AGRO is destroying value.
The number of shares outstanding for AGRO has been reduced compared to 1 year ago.
Compared to 5 years ago, AGRO has less shares outstanding
AGRO has a better debt/assets ratio than last year.
2.2 Solvency
AGRO has an Altman-Z score of 1.30. This is a bad value and indicates that AGRO is not financially healthy and even has some risk of bankruptcy.
AGRO has a Altman-Z score of 1.30. This is in the lower half of the industry: AGRO underperforms 63.74% of its industry peers.
AGRO has a debt to FCF ratio of 13.48. This is a negative value and a sign of low solvency as AGRO would need 13.48 years to pay back of all of its debts.
AGRO has a Debt to FCF ratio (13.48) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.68 indicates that AGRO is somewhat dependend on debt financing.
AGRO's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. AGRO is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.48 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.3
WACC4.1%
2.3 Liquidity
A Current Ratio of 1.98 indicates that AGRO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.98, AGRO is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
AGRO has a Quick Ratio of 1.04. This is a normal value and indicates that AGRO is financially healthy and should not expect problems in meeting its short term obligations.
AGRO has a better Quick ratio (1.04) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.54%.
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.
AGRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.67%.
AGRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.89% yearly.
EPS 1Y (TTM)-73.54%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-159.09%
Revenue 1Y (TTM)19.67%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%24.34%
3.2 Future
Based on estimates for the next years, AGRO will show a decrease in Earnings Per Share. The EPS will decrease by -8.03% on average per year.
AGRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.76% yearly.
EPS Next Y-41.88%
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue Next Year-3.56%
Revenue Next 2Y-1.38%
Revenue Next 3Y-1.76%
Revenue Next 5YN/A
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 stable.
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
With a Price/Earnings ratio of 15.11, AGRO is valued correctly.
Based on the Price/Earnings ratio, AGRO is valued a bit cheaper than 68.13% of the companies in the same industry.
AGRO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.09 indicates a correct valuation of AGRO.
Based on the Price/Forward Earnings ratio, AGRO is valued a bit cheaper than 79.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. AGRO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGRO is valued cheaper than 83.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGRO is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 5.72 |
4.3 Compensation for Growth
A cheap valuation may be justified as AGRO's earnings are expected to decrease with -8.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
5. Dividend
5.1 Amount
AGRO has a Yearly Dividend Yield of 3.73%.
Compared to an average industry Dividend Yield of 4.75, AGRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, AGRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
AGRO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.53% of the earnings are spent on dividend by AGRO. This is a bit on the high side, but may be sustainable.
DP55.53%
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
9.37
+0.17 (+1.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners47.75%
Inst Owner Change0.23%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap936.91M
Analysts48
Price Target12.32 (31.48%)
Short Float %2.46%
Short Ratio0.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP55.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.79%
Min EPS beat(2)-41.61%
Max EPS beat(2)-1.96%
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)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)-0.44%
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)-0.3%
PT rev (3m)-6.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-17.89%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)1.05%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 12.09 | ||
| P/S | 0.6 | ||
| P/FCF | 9.9 | ||
| P/OCF | 2.69 | ||
| P/B | 0.66 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 5.72 |
EPS(TTM)0.62
EY6.62%
EPS(NY)0.78
Fwd EY8.27%
FCF(TTM)0.95
FCFY10.1%
OCF(TTM)3.48
OCFY37.14%
SpS15.65
BVpS14.2
TBVpS13.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 4.44% | ||
| ROCE | 1.64% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.3% | ||
| ROICexgc | 1.32% | ||
| OM | 2.93% | ||
| PM (TTM) | 4.03% | ||
| GM | 18.85% | ||
| FCFM | 6.05% |
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 | 0.68 | ||
| Debt/FCF | 13.48 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 86.3% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 102.54% | ||
| Profit Quality | 150.07% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.3 |
F-Score6
WACC4.1%
ROIC/WACC0.3
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)-73.54%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-159.09%
EPS Next Y-41.88%
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue 1Y (TTM)19.67%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%24.34%
Revenue Next Year-3.56%
Revenue Next 2Y-1.38%
Revenue Next 3Y-1.76%
Revenue Next 5YN/A
EBIT growth 1Y-63.14%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year75.33%
EBIT Next 3Y19.26%
EBIT Next 5YN/A
FCF growth 1Y-12.09%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y2.34%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%