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 55 industry peers in the Life Sciences Tools & Services industry. A scores excellent on profitability, but 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
In the past year A was profitable.
In the past year A had a positive cash flow from operations.
In the past 5 years A has always been profitable.
Each year in the past 5 years A had a positive operating cash flow.
1.2 Ratios
A's Return On Assets of 9.59% is amongst the best of the industry. A outperforms 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.
A's Return On Invested Capital of 13.32% is amongst the best of the industry. A outperforms 87.27% of its industry peers.
A had an Average Return On Invested Capital over the past 3 years of 14.65%. This is in line with the industry average of 13.60%.
| 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
Looking at the Profit Margin, with a value of 17.59%, A belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
A's Profit Margin has been stable in the last couple of years.
A has a better Operating Margin (23.33%) than 92.73% 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 63.64% 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
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.
A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, A has a worse debt to assets ratio.
2.2 Solvency
A has an Altman-Z score of 4.66. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of A (4.66) is better than 83.64% of its industry peers.
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 has a better Debt to FCF ratio (2.94) than 78.18% 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 Debt to Equity ratio of 0.57. This is in the lower half of the industry: A underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.3
WACC10.22%
2.3 Liquidity
A Current Ratio of 2.09 indicates that A has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, A is in line with its industry, outperforming 43.64% of the companies in the same industry.
A has a Quick Ratio of 1.60. This is a normal value and indicates that A is financially healthy and should not expect problems in meeting 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%.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
Looking at the last year, A shows a small growth in Revenue. The Revenue has grown by 0.56% in the last year.
Measured over the past years, A shows a small growth in Revenue. The Revenue has been growing by 4.75% on average per year.
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 8.67% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y7.21%
EPS Next 2Y8.25%
EPS Next 3Y8.95%
EPS Next 5Y8.67%
Revenue Next Year4.45%
Revenue Next 2Y5.07%
Revenue Next 3Y5.46%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.68, the valuation of A can be described as rather expensive.
A's Price/Earnings ratio is a bit cheaper when compared to the industry. A is cheaper than 76.36% of the companies in the same industry.
A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A is valuated rather expensively with a Price/Forward Earnings ratio of 18.89.
Based on the Price/Forward Earnings ratio, A is valued a bit cheaper than the industry average as 78.18% of the companies are valued more expensively.
A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of A indicates a somewhat cheap valuation: A is cheaper than 76.36% of the companies listed in the same industry.
A's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. A is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.07 | ||
| EV/EBITDA | 19.62 |
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.
A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)1.95
EPS Next 2Y8.25%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
A has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 0.53, A pays a better dividend. On top of this A pays more dividend than 100.00% of the companies listed in the same industry.
With a Dividend Yield of 0.87, A pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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.
The dividend of A decreased recently.
Dividend Growth(5Y)7.63%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
A pays out 23.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of A is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP23.76%
EPS Next 2Y8.25%
EPS Next 3Y8.95%
117.08
-1.83 (-1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners91.15%
Inst Owner Change0.44%
Ins Owners0.19%
Ins Owner Change-0.11%
Market Cap33.38B
Analysts76.3
Price Target137.51 (17.45%)
Short Float %1.54%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)-5.34%
PT rev (3m)-10.32%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 18.89 | ||
| P/S | 5.04 | ||
| P/FCF | 28.07 | ||
| P/OCF | 21.06 | ||
| P/B | 5.44 | ||
| P/tB | 28.6 | ||
| EV/EBITDA | 19.62 |
EPS(TTM)5.4
EY4.61%
EPS(NY)6.2
Fwd EY5.29%
FCF(TTM)4.17
FCFY3.56%
OCF(TTM)5.56
OCFY4.75%
SpS23.25
BVpS21.52
TBVpS4.09
PEG (NY)3.01
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 | 4.66 |
F-Score5
WACC10.22%
ROIC/WACC1.3
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 Y7.21%
EPS Next 2Y8.25%
EPS Next 3Y8.95%
EPS Next 5Y8.67%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%6.04%
Revenue Next Year4.45%
Revenue Next 2Y5.07%
Revenue Next 3Y5.46%
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%