AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
NYSE:A - New York Stock Exchange, Inc. - US00846U1016 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to A. A was compared to 55 industry peers in the Life Sciences Tools & Services industry. While A has a great profitability rating, there are some minor concerns on its financial health. A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
A had positive earnings in the past year.
In the past year A had a positive cash flow from operations.
In the past 5 years A has always been profitable.
A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
A has a better Return On Assets (9.59%) than 89.09% of its industry peers.
A's Return On Equity of 19.00% is amongst the best of the industry. A outperforms 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 13.32%, A belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for A is in line with the industry average of 15.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 19% | ||
| ROIC | 13.32% |
ROA(3y)11.44%
ROA(5y)10.62%
ROE(3y)22.24%
ROE(5y)20.78%
ROIC(3y)14.65%
ROIC(5y)13.29%
1.3 Margins
A has a better Profit Margin (17.59%) than 94.55% of its industry peers.
A's Profit Margin has been stable in the last couple of years.
A has a Operating Margin of 23.33%. This is amongst the best in the industry. A outperforms 92.73% of its industry peers.
In the last couple of years the Operating Margin of A has grown nicely.
The Gross Margin of A (53.77%) is better than 65.45% of its industry peers.
In the last couple of years the Gross Margin of A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.33% | ||
| PM (TTM) | 17.59% | ||
| GM | 53.77% |
OM growth 3Y4.07%
OM growth 5Y5.41%
PM growth 3Y1.12%
PM growth 5Y-0.93%
GM growth 3Y0.36%
GM growth 5Y0.01%
2. Health
2.1 Basic Checks
A has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for A has been reduced compared to 1 year ago.
Compared to 5 years ago, A has less shares outstanding
A has a worse debt/assets ratio than last year.
2.2 Solvency
A has an Altman-Z score of 4.69. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.69, A is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as A would need 2.94 years to pay back of all of its debts.
A's Debt to FCF ratio of 2.94 is fine compared to the rest of the industry. A outperforms 78.18% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that A is somewhat dependend on debt financing.
A has a worse Debt to Equity ratio (0.57) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.69 |
ROIC/WACC1.28
WACC10.41%
2.3 Liquidity
A has a Current Ratio of 2.09. This indicates that A is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of A (2.09) is comparable to the rest of the industry.
A Quick Ratio of 1.60 indicates that A should not have too much problems paying its short term obligations.
A has a Quick ratio (1.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
A shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.50%.
Measured over the past years, A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
The Revenue has been growing slightly by 0.56% in the past year.
A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.75% yearly.
EPS 1Y (TTM)1.5%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%7.38%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
3.2 Future
Based on estimates for the next years, A will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.67% on average per year.
Based on estimates for the next years, A will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y7.51%
EPS Next 2Y8.07%
EPS Next 3Y8.81%
EPS Next 5Y8.67%
Revenue Next Year4.74%
Revenue Next 2Y5.13%
Revenue Next 3Y5.51%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.14, the valuation of A can be described as rather expensive.
80.00% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of A to the average of the S&P500 Index (28.05), we can say A is valued slightly cheaper.
A is valuated rather expensively with a Price/Forward Earnings ratio of 19.35.
81.82% of the companies in the same industry are more expensive than A, based on the Price/Forward Earnings ratio.
A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
A's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. A is cheaper than 76.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than 74.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.56 | ||
| EV/EBITDA | 19.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates A does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of A may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)1.99
EPS Next 2Y8.07%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, A is not a good candidate for dividend investing.
A's Dividend Yield is rather good when compared to the industry average which is at 0.51. A pays more dividend than 98.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of A is nicely growing with an annual growth rate of 7.63%!
A has been paying a dividend for at least 10 years, so it has a reliable track record.
A has decreased its dividend recently.
Dividend Growth(5Y)7.63%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
23.76% of the earnings are spent on dividend by A. This is a low number and sustainable payout ratio.
A's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP23.76%
EPS Next 2Y8.07%
EPS Next 3Y8.81%
119.54
-0.64 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.42%
Inst Owner Change-0.21%
Ins Owners0.18%
Ins Owner Change0.24%
Market Cap33.96B
Analysts75.38
Price Target136.4 (14.1%)
Short Float %1.18%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.95
Dividend Growth(5Y)7.63%
DP23.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.35%
Min EPS beat(2)1.14%
Max EPS beat(2)1.56%
EPS beat(4)4
Avg EPS beat(4)1.8%
Min EPS beat(4)1.14%
Max EPS beat(4)2.92%
EPS beat(8)8
Avg EPS beat(8)1.81%
EPS beat(12)11
Avg EPS beat(12)2.82%
EPS beat(16)14
Avg EPS beat(16)2.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)6
Avg Revenue beat(12)0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)-6.1%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)0.09%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 19.35 | ||
| P/S | 5.12 | ||
| P/FCF | 28.56 | ||
| P/OCF | 21.42 | ||
| P/B | 5.53 | ||
| P/tB | 29.1 | ||
| EV/EBITDA | 19.75 |
EPS(TTM)5.4
EY4.52%
EPS(NY)6.18
Fwd EY5.17%
FCF(TTM)4.19
FCFY3.5%
OCF(TTM)5.58
OCFY4.67%
SpS23.33
BVpS21.6
TBVpS4.11
PEG (NY)2.95
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 19% | ||
| ROCE | 15.24% | ||
| ROIC | 13.32% | ||
| ROICexc | 15.57% | ||
| ROICexgc | 35.73% | ||
| OM | 23.33% | ||
| PM (TTM) | 17.59% | ||
| GM | 53.77% | ||
| FCFM | 17.94% |
ROA(3y)11.44%
ROA(5y)10.62%
ROE(3y)22.24%
ROE(5y)20.78%
ROIC(3y)14.65%
ROIC(5y)13.29%
ROICexc(3y)17.07%
ROICexc(5y)15.7%
ROICexgc(3y)42.54%
ROICexgc(5y)41.66%
ROCE(3y)16.57%
ROCE(5y)15.04%
ROICexcg growth 3Y-7.71%
ROICexcg growth 5Y-3.01%
ROICexc growth 3Y-0.19%
ROICexc growth 5Y4.58%
OM growth 3Y4.07%
OM growth 5Y5.41%
PM growth 3Y1.12%
PM growth 5Y-0.93%
GM growth 3Y0.36%
GM growth 5Y0.01%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 142.96% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 16.99 | ||
| Cash Conversion | 86.94% | ||
| Profit Quality | 101.97% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 4.69 |
F-Score5
WACC10.41%
ROIC/WACC1.28
Cap/Depr(3y)116.28%
Cap/Depr(5y)89.27%
Cap/Sales(3y)4.81%
Cap/Sales(5y)3.93%
Profit Quality(3y)102.27%
Profit Quality(5y)105.09%
High Growth Momentum
Growth
EPS 1Y (TTM)1.5%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%7.38%
EPS Next Y7.51%
EPS Next 2Y8.07%
EPS Next 3Y8.81%
EPS Next 5Y8.67%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
Revenue Next Year4.74%
Revenue Next 2Y5.13%
Revenue Next 3Y5.51%
Revenue Next 5Y5.53%
EBIT growth 1Y14.77%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.02%
EBIT Next 3Y12.22%
EBIT Next 5Y9.51%
FCF growth 1Y0.51%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y7.97%
OCF growth 3Y5.65%
OCF growth 5Y11.39%