AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
NYSE:A - New York Stock Exchange, Inc. - US00846U1016 - Common Stock - Currency: USD
Taking everything into account, A scores 6 out of 10 in our fundamental rating. A was compared to 54 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
A had positive earnings in the past year.
A had a positive operating cash flow in the past year.
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
The Return On Assets of A (9.59%) is better than 87.04% of its industry peers.
A has a better Return On Equity (19.00%) than 88.89% of its industry peers.
A has a Return On Invested Capital of 13.32%. This is amongst the best in the industry. A outperforms 87.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for A is in line with the industry average of 15.98%.
| 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
With an excellent Profit Margin value of 17.59%, A belongs to the best of the industry, outperforming 90.74% of the companies in the same industry.
A's Profit Margin has been stable in the last couple of years.
A's Operating Margin of 23.33% is amongst the best of the industry. A outperforms 92.59% of its industry peers.
In the last couple of years the Operating Margin of A has grown nicely.
With a decent Gross Margin value of 53.77%, A is doing good in the industry, outperforming 64.81% of the companies in the same industry.
A's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so A is still creating some value.
Compared to 1 year ago, A has less shares outstanding
A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for A is higher compared to a year ago.
2.2 Solvency
A has an Altman-Z score of 4.60. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
A's Altman-Z score of 4.60 is amongst the best of the industry. A outperforms 83.33% of its industry peers.
The Debt to FCF ratio of A is 2.94, which is a good value as it means it would take A, 2.94 years of fcf income to pay off all of its debts.
A has a better Debt to FCF ratio (2.94) than 75.93% of its industry peers.
A has a Debt/Equity ratio of 0.57. This is a neutral value indicating A is somewhat dependend on debt financing.
A has a worse Debt to Equity ratio (0.57) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.6 |
ROIC/WACC1.27
WACC10.45%
2.3 Liquidity
A Current Ratio of 2.09 indicates that A has no problem at all paying its short term obligations.
A's Current ratio of 2.09 is in line compared to the rest of the industry. A outperforms 44.44% of its industry peers.
A Quick Ratio of 1.60 indicates that A should not have too much problems paying its short term obligations.
The Quick ratio of A (1.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.50% over the past year.
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
The Earnings Per Share is expected to grow by 9.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y7.51%
EPS Next 2Y8.07%
EPS Next 3Y8.81%
EPS Next 5Y9.57%
Revenue Next Year4.75%
Revenue Next 2Y5.1%
Revenue Next 3Y5.51%
Revenue Next 5Y5.71%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.69, the valuation of A can be described as rather expensive.
81.48% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.96, the valuation of A can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of A indicates a rather cheap valuation: A is cheaper than 81.48% of the companies listed in the same industry.
A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
75.93% of the companies in the same industry are more expensive than A, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.99 | ||
| EV/EBITDA | 19.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)1.95
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 0.54. A pays more dividend than 98.15% of the companies in the same industry.
With a Dividend Yield of 0.83, A pays less dividend than the S&P500 average, which is at 2.36.
| 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 more than its dividend. This makes the dividend growth sustainable.
DP23.76%
EPS Next 2Y8.07%
EPS Next 3Y8.81%
117.15
-1.96 (-1.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.35%
Inst Owner Change0.31%
Ins Owners0.13%
Ins Owner Change0.44%
Market Cap33.28B
Analysts75.38
Price Target136.4 (16.43%)
Short Float %1.08%
Short Ratio1.81
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)-4.65%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-2.39%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 18.96 | ||
| P/S | 5.02 | ||
| P/FCF | 27.99 | ||
| P/OCF | 21 | ||
| P/B | 5.42 | ||
| P/tB | 28.52 | ||
| EV/EBITDA | 19.28 |
EPS(TTM)5.4
EY4.61%
EPS(NY)6.18
Fwd EY5.27%
FCF(TTM)4.19
FCFY3.57%
OCF(TTM)5.58
OCFY4.76%
SpS23.33
BVpS21.6
TBVpS4.11
PEG (NY)2.89
PEG (5Y)1.95
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 | 4.6 |
F-Score5
WACC10.45%
ROIC/WACC1.27
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 5Y9.57%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
Revenue Next Year4.75%
Revenue Next 2Y5.1%
Revenue Next 3Y5.51%
Revenue Next 5Y5.71%
EBIT growth 1Y14.77%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.49%
EBIT Next 3Y11.88%
EBIT Next 5Y7.12%
FCF growth 1Y0.51%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y7.97%
OCF growth 3Y5.65%
OCF growth 5Y11.39%