ADECOAGRO SA (AGRO) Stock Fundamental Analysis
NYSE:AGRO - New York Stock Exchange, Inc. - LU0584671464 - Common Stock - Currency: USD
Overall AGRO gets a fundamental rating of 4 out of 10. We evaluated AGRO against 89 industry peers in the Food Products industry. Both the profitability and the financial health of AGRO get a neutral evaluation. Nothing too spectacular is happening here. 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.
AGRO had positive earnings in each of the past 5 years.
Each year in the past 5 years AGRO had a positive operating cash flow.
1.2 Ratios
AGRO has a Return On Assets of 4.91%. This is in the better half of the industry: AGRO outperforms 64.04% of its industry peers.
The Return On Equity of AGRO (11.35%) is better than 67.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.96%, AGRO is in line with its industry, outperforming 40.45% of the companies in the same industry.
AGRO had an Average Return On Invested Capital over the past 3 years of 2.02%. This is significantly below the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 11.35% | ||
| ROIC | 1.96% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.59%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
1.3 Margins
AGRO has a Profit Margin of 11.39%. This is amongst the best in the industry. AGRO outperforms 87.64% of its industry peers.
AGRO's Profit Margin has declined in the last couple of years.
AGRO has a better Operating Margin (5.30%) than 60.67% of its industry peers.
In the last couple of years the Operating Margin of AGRO has declined.
The Gross Margin of AGRO (20.63%) is comparable to the rest of the industry.
AGRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.3% | ||
| PM (TTM) | 11.39% | ||
| GM | 20.63% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGRO is destroying value.
Compared to 1 year ago, AGRO has less shares outstanding
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
Based on the Altman-Z score of 1.37, we must say that AGRO is in the distress zone and has some risk of bankruptcy.
AGRO's Altman-Z score of 1.37 is on the low side compared to the rest of the industry. AGRO is outperformed by 62.92% of its industry peers.
The Debt to FCF ratio of AGRO is 15.07, which is on the high side as it means it would take AGRO, 15.07 years of fcf income to pay off all of its debts.
AGRO has a Debt to FCF ratio (15.07) which 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.
AGRO has a worse Debt to Equity ratio (0.71) than 60.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 15.07 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.45
WACC4.32%
2.3 Liquidity
AGRO has a Current Ratio of 2.40. This indicates that AGRO is financially healthy and has no problem in meeting its short term obligations.
AGRO's Current ratio of 2.40 is fine compared to the rest of the industry. AGRO outperforms 70.79% of its industry peers.
A Quick Ratio of 1.09 indicates that AGRO should not have too much problems paying its short term obligations.
The Quick ratio of AGRO (1.09) is better than 67.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.51%.
Looking at the last year, AGRO shows a quite strong growth in Revenue. The Revenue has grown by 14.59% in the last year.
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)-57.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%406.67%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y16.4%
Revenue growth 5Y10.42%
Sales Q2Q%41.78%
3.2 Future
Based on estimates for the next years, AGRO will show a decrease in Earnings Per Share. The EPS will decrease by -5.25% on average per year.
AGRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
EPS Next Y-12.94%
EPS Next 2Y-12.88%
EPS Next 3Y-5.25%
EPS Next 5YN/A
Revenue Next Year13.64%
Revenue Next 2Y4.51%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
3.3 Evolution
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
Based on the Price/Earnings ratio of 7.75, the valuation of AGRO can be described as very cheap.
Based on the Price/Earnings ratio, AGRO is valued cheaper than 92.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. AGRO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.21, the valuation of AGRO can be described as reasonable.
92.13% of the companies in the same industry are more expensive than AGRO, based on the Price/Forward Earnings ratio.
AGRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
AGRO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGRO is cheaper than 86.52% of the companies in the same industry.
74.16% of the companies in the same industry are more expensive than AGRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
A cheap valuation may be justified as AGRO's earnings are expected to decrease with -5.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.88%
EPS Next 3Y-5.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, AGRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.33, AGRO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, AGRO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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
AGRO pays out 22.08% of its income as dividend. This is a sustainable payout ratio.
DP22.08%
EPS Next 2Y-12.88%
EPS Next 3Y-5.25%
9.92
-1.77 (-15.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change0.19%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.00B
Analysts73.85
Price Target13.18 (32.86%)
Short Float %1.32%
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP22.08%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0.46%
PT rev (3m)-4.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.8%
Revenue NY rev (1m)-3.15%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 10.21 | ||
| P/S | 0.72 | ||
| P/FCF | 12.42 | ||
| P/OCF | 2.92 | ||
| P/B | 0.72 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)1.28
EY12.9%
EPS(NY)0.97
Fwd EY9.79%
FCF(TTM)0.8
FCFY8.05%
OCF(TTM)3.4
OCFY34.25%
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 | 1.96% | ||
| ROICexc | 2.11% | ||
| ROICexgc | 2.15% | ||
| OM | 5.3% | ||
| PM (TTM) | 11.39% | ||
| GM | 20.63% | ||
| FCFM | 5.79% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.59%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
ROICexc(3y)2.31%
ROICexc(5y)2.53%
ROICexgc(3y)2.34%
ROICexgc(5y)2.56%
ROCE(3y)2.73%
ROCE(5y)2.93%
ROICexcg growth 3Y-15.9%
ROICexcg growth 5Y-4.05%
ROICexc growth 3Y-15.81%
ROICexc growth 5Y-3.96%
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-Score7
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 | 1.37 |
F-Score7
WACC4.32%
ROIC/WACC0.45
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)-57.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%406.67%
EPS Next Y-12.94%
EPS Next 2Y-12.88%
EPS Next 3Y-5.25%
EPS Next 5YN/A
Revenue 1Y (TTM)14.59%
Revenue growth 3Y16.4%
Revenue growth 5Y10.42%
Sales Q2Q%41.78%
Revenue Next Year13.64%
Revenue Next 2Y4.51%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y-32.57%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year83.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.74%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y-30.23%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%