We assign a fundamental rating of 3 out of 10 to AGRO. AGRO was compared to 87 industry peers in the Food Products industry. While AGRO seems to be doing ok healthwise, there are quite some concerns on its profitability. AGRO is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AGRO had positive earnings in the past year.
AGRO had a positive operating cash flow in the past year.
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

The Return On Assets of AGRO (0.64%) is comparable to the rest of the industry.
AGRO has a Return On Equity (1.71%) which is in line with its industry peers.
AGRO has a worse Return On Invested Capital (0.13%) than 64.37% of its industry peers.
AGRO had an Average Return On Invested Capital over the past 3 years of 2.02%. This is significantly below the industry average of 27.79%.

		Industry Rank	Sector Rank
ROA	0.64%
ROE	1.71%
ROIC	0.13%

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

With a Profit Margin value of 1.69%, AGRO perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
In the last couple of years the Profit Margin of AGRO has declined.
AGRO has a Operating Margin (0.41%) which is in line with its industry peers.
AGRO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.72%, AGRO perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
AGRO's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	0.41%
PM (TTM)	1.69%
GM	17.72%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for AGRO has been reduced compared to 5 years ago.
AGRO has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.19, we must say that AGRO is in the distress zone and has some risk of bankruptcy.
AGRO has a worse Altman-Z score (1.19) than 71.26% of its industry peers.
The Debt to FCF ratio of AGRO is 30.19, which is on the high side as it means it would take AGRO, 30.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AGRO (30.19) is comparable to the rest of the industry.
AGRO has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
AGRO has a worse Debt to Equity ratio (1.00) than 71.26% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1
Debt/FCF	30.19
Altman-Z	1.19

ROIC/WACC0.03

WACC4.2%

2.3 Liquidity

A Current Ratio of 2.80 indicates that AGRO has no problem at all paying its short term obligations.
The Current ratio of AGRO (2.80) is better than 82.76% of its industry peers.
AGRO has a Quick Ratio of 1.56. This is a normal value and indicates that AGRO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AGRO (1.56) is better than 79.31% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.8
Quick Ratio	1.56

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.64%.
The Earnings Per Share has been decreasing by -7.45% on average over the past years.
AGRO shows a decrease in Revenue. In the last year, the revenue decreased by -0.49%.
The Revenue has been growing by 10.89% on average over the past years. This is quite good.

EPS 1Y (TTM)-84.64%

EPS 3Y-7.45%

EPS 5YN/A

EPS Q2Q%-7.14%

Revenue 1Y (TTM)-0.49%

Revenue growth 3Y10.27%

Revenue growth 5Y10.89%

Sales Q2Q%-35.48%

3.2 Future

Based on estimates for the next years, AGRO will show a decrease in Earnings Per Share. The EPS will decrease by -0.85% on average per year.
Based on estimates for the next years, AGRO will show a decrease in Revenue. The Revenue will decrease by -4.01% on average per year.

EPS Next Y-79.25%

EPS Next 2Y-16.05%

EPS Next 3Y-0.85%

EPS Next 5YN/A

Revenue Next Year-13.87%

Revenue Next 2Y-1.77%

Revenue Next 3Y-4.01%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

AGRO is valuated rather expensively with a Price/Earnings ratio of 20.16.
AGRO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AGRO to the average of the S&P500 Index (27.25), we can say AGRO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.55, the valuation of AGRO can be described as reasonable.
AGRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGRO is cheaper than 82.76% of the companies in the same industry.
AGRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	20.16
Fwd PE	11.55

4.2 Price Multiples

AGRO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGRO is cheaper than 81.61% 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 71.26% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	17.07
EV/EBITDA	6.76

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-16.05%

EPS Next 3Y-0.85%

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5. Dividend

5.1 Amount

AGRO has a Yearly Dividend Yield of 3.92%.
Compared to an average industry Dividend Yield of 2.29, AGRO pays a better dividend. On top of this AGRO pays more dividend than 80.46% of the companies listed in the same industry.
AGRO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	3.92%

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

149.55% of the earnings are spent on dividend by AGRO. This is not a sustainable payout ratio.

DP149.55%

EPS Next 2Y-16.05%

EPS Next 3Y-0.85%

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ADECOAGRO SA / AGRO FAQ

What is the fundamental rating for AGRO stock?

ChartMill assigns a fundamental rating of 3 / 10 to AGRO.

Can you provide the valuation status for ADECOAGRO SA?

ChartMill assigns a valuation rating of 5 / 10 to ADECOAGRO SA (AGRO). This can be considered as Fairly Valued.

Can you provide the profitability details for ADECOAGRO SA?

ADECOAGRO SA (AGRO) has a profitability rating of 3 / 10.

What is the expected EPS growth for ADECOAGRO SA (AGRO) stock?

The Earnings per Share (EPS) of ADECOAGRO SA (AGRO) is expected to decline by -79.25% in the next year.

How sustainable is the dividend of ADECOAGRO SA (AGRO) stock?

The dividend rating of ADECOAGRO SA (AGRO) is 3 / 10 and the dividend payout ratio is 149.55%.