NYSE:AGCO is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 13, 2023

Uncover the hidden value in AGCO CORP (NYSE:AGCO) as our stock screening tool recommends it as an undervalued choice. NYSE:AGCO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Evaluating Valuation: NYSE:AGCO

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:AGCO has earned a 9 for valuation:

A Price/Earnings ratio of 7.14 indicates a rather cheap valuation of AGCO.
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.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (23.45), we can say AGCO is valued rather cheaply.
AGCO is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
Based on the Price/Forward Earnings ratio, AGCO is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
AGCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.84.
Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AGCO is valued cheaper than 83.85% of the companies 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.
AGCO has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Insights: NYSE:AGCO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:AGCO, the assigned 8 is noteworthy for profitability:

AGCO's Return On Assets of 10.17% is amongst the best of the industry. AGCO outperforms 80.77% of its industry peers.
With an excellent Return On Equity value of 26.51%, AGCO belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
The Return On Invested Capital of AGCO (19.87%) is better than 93.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is above the industry average of 10.14%.
The 3 year average ROIC (13.89%) for AGCO is below the current ROIC(19.87%), indicating increased profibility in the last year.
AGCO has a Profit Margin of 7.96%. This is in the better half of the industry: AGCO outperforms 63.08% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
With a decent Operating Margin value of 12.29%, AGCO is doing good in the industry, outperforming 66.92% of the companies in the same industry.
AGCO's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of AGCO has grown nicely.

Understanding NYSE:AGCO's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:AGCO, the assigned 5 reflects its health status:

An Altman-Z score of 3.56 indicates that AGCO is not in any danger for bankruptcy at the moment.
AGCO has a better Altman-Z score (3.56) than 70.00% of its industry peers.
AGCO has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as AGCO would need 2.35 years to pay back of all of its debts.
AGCO has a Debt to FCF ratio of 2.35. This is in the better half of the industry: AGCO outperforms 75.38% of its industry peers.
AGCO has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.

Understanding NYSE:AGCO's Growth Score

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:AGCO has achieved a 6 out of 10:

AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.37%, 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.
The Revenue has grown by 21.86% in the past year. This is a very strong growth!
Measured over the past years, AGCO shows a quite strong growth in Revenue. The Revenue has been growing by 8.78% on average per year.

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

For an up to date full fundamental analysis you can check the fundamental report of AGCO

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.