ADECOAGRO SA (AGRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGRO - LU0584671464 - Common Stock
8.97 USD
-0.17 (-1.86%)
8.97 USD
0 (0%)
Taking everything into account, AGRO scores 3 out of 10 in our fundamental rating. AGRO was compared to 87 industry peers in the Food Products industry. AGRO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AGRO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year AGRO was profitable.
- AGRO had a positive operating cash flow in the past year.
- 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
- AGRO has a Return On Assets (0.64%) which 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 Return On Invested Capital of 0.13%. This is in the lower half of the industry: AGRO underperforms 64.37% 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 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
- Looking at the Profit Margin, with a value of 1.69%, AGRO is in line with its industry, outperforming 52.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of AGRO has declined.
- Looking at the Operating Margin, with a value of 0.41%, AGRO is in line with its industry, outperforming 42.53% of the companies in the same industry.
- In the last couple of years the Operating Margin of AGRO has declined.
- AGRO has a Gross Margin of 17.72%. This is comparable to the rest of the industry: AGRO outperforms 47.13% of its industry peers.
- 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%
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.
- 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 1.19. 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 (1.19) is worse than 71.26% of its industry peers.
- AGRO has a debt to FCF ratio of 30.19. This is a negative value and a sign of low solvency as AGRO would need 30.19 years to pay back of all of its debts.
- AGRO has a Debt to FCF ratio (30.19) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.00 is on the high side and indicates that AGRO has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.00, AGRO is not doing good in the industry: 71.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 30.19 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.03
WACC4.18%
2.3 Liquidity
- A Current Ratio of 2.80 indicates that AGRO has no problem at all paying its short term obligations.
- AGRO has a Current ratio of 2.80. This is amongst the best in the industry. AGRO outperforms 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.
- AGRO's Quick ratio of 1.56 is fine compared to the rest of the industry. AGRO outperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
- The earnings per share for AGRO have decreased strongly by -84.64% in the last year.
- 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%.
- 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)-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
- AGRO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.85% yearly.
- AGRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.01% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- A Price/Earnings ratio of 19.93 indicates a rather expensive 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 28.60.
- The Price/Forward Earnings ratio is 11.42, which indicates a very decent valuation of AGRO.
- Based on the Price/Forward Earnings ratio, AGRO is valued cheaper than 83.91% of the companies in the same industry.
- AGRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 11.42 |
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 | 16.89 | ||
| EV/EBITDA | 6.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.05%
EPS Next 3Y-0.85%
5. Dividend
5.1 Amount
- AGRO has a Yearly Dividend Yield of 3.92%. Purely for dividend investing, there may be better candidates out there.
- AGRO's Dividend Yield is rather good when compared to the industry average which is at 2.29. AGRO pays more dividend than 80.46% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AGRO pays a better dividend.
| 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
- AGRO pays out 149.55% of its income as dividend. This is not a sustainable payout ratio.
DP149.55%
EPS Next 2Y-16.05%
EPS Next 3Y-0.85%
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%.