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In a market where value is scarce, NYSE:AGCO offers a refreshing opportunity with its solid fundamentals.

By Mill Chart

Last update: Oct 23, 2023

AGCO CORP (NYSE:AGCO) has caught the attention of our stock screener as a great value stock. NYSE:AGCO excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Unpacking NYSE:AGCO's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:AGCO scores a 9 out of 10:

  • Based on the Price/Earnings ratio of 7.33, the valuation of AGCO can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 94.62% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.03, AGCO is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.48, the valuation of AGCO can be described as very cheap.
  • AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 93.08% of the companies in the same industry.
  • AGCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.58, which is the current average of the S&P500 Index.
  • AGCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGCO is cheaper than 91.54% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGCO indicates a somewhat cheap valuation: AGCO is cheaper than 80.00% of the companies listed in the same industry.
  • AGCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of AGCO may justify a higher PE ratio.

Profitability Examination for NYSE:AGCO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:AGCO has earned a 8 out of 10:

  • AGCO has a Return On Assets of 9.76%. This is amongst the best in the industry. AGCO outperforms 80.77% of its industry peers.
  • Looking at the Return On Equity, with a value of 26.87%, AGCO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • AGCO has a Return On Invested Capital of 19.14%. This is amongst the best in the industry. AGCO outperforms 93.08% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AGCO is above the industry average of 9.96%.
  • The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.14%), indicating increased profibility in the last year.
  • AGCO's Profit Margin of 7.84% is fine compared to the rest of the industry. AGCO outperforms 66.15% of its industry peers.
  • In the last couple of years the Profit Margin of AGCO has grown nicely.
  • AGCO has a better Operating Margin (11.93%) than 66.92% of its industry peers.
  • AGCO's Operating Margin has improved in the last couple of years.
  • AGCO's Gross Margin has improved in the last couple of years.

How do we evaluate the Health for NYSE:AGCO?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:AGCO, the assigned 5 for health provides valuable insights:

  • An Altman-Z score of 3.40 indicates that AGCO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of AGCO (3.40) is better than 66.92% of its industry peers.
  • AGCO has a better Debt to FCF ratio (4.09) than 71.54% of its industry peers.

Exploring NYSE:AGCO's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:AGCO boasts a 6 out of 10:

  • AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.73%, which is quite impressive.
  • AGCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.66% yearly.
  • Looking at the last year, AGCO shows a very strong growth in Revenue. The Revenue has grown by 23.16%.
  • The Revenue has been growing by 8.78% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of AGCO contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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AGCO CORP

NYSE:AGCO (2/22/2024, 12:03:04 PM)

106.97

-0.76 (-0.71%)

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Despite its impressive fundamentals, AGCO CORP (NYSE:AGCO) remains undervalued.

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