AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
USA - NYSE:A - US00846U1016 - Common Stock
125.63 USD
+2.39 (+1.94%)
125.7 USD
+0.07 (+0.06%)
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. A scores excellent on profitability, but 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.
Each year in the past 5 years A had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.59%, A belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
The Return On Equity of A (19.00%) is better than 89.09% of its industry peers.
A has a Return On Invested Capital of 13.32%. This is amongst the best in the industry. A outperforms 87.27% 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 15.96%.
| 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 89.09% of its industry peers.
In the last couple of years the Profit Margin of A has remained more or less at the same level.
Looking at the Operating Margin, with a value of 23.33%, A belongs to the top of the industry, outperforming 92.73% of the companies in the same industry.
In the last couple of years the Operating Margin of A has grown nicely.
A has a better Gross Margin (53.77%) than 61.82% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), A 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.
The debt/assets ratio for A is higher compared to a year ago.
2.2 Solvency
A has an Altman-Z score of 4.77. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of A (4.77) is better than 81.82% 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.
Looking at the Debt to FCF ratio, with a value of 2.94, A is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
A has a Debt/Equity ratio of 0.57. This is a neutral value indicating A is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, A is doing worse than 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.77 |
ROIC/WACC1.32
WACC10.12%
2.3 Liquidity
A Current Ratio of 2.09 indicates that A has no problem at all paying its short term obligations.
A has a Current ratio (2.09) which is comparable to the rest of the 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's Quick ratio of 1.60 is in line compared to the rest of the industry. A outperforms 43.64% of 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 4.61%.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
The Revenue has decreased by -4.73% 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)4.61%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%3.79%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%10.14%
3.2 Future
The Earnings Per Share is expected to grow by 8.99% on average over the next years. This is quite good.
A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.88% yearly.
EPS Next Y7.52%
EPS Next 2Y8.03%
EPS Next 3Y8.82%
EPS Next 5Y8.99%
Revenue Next Year6.64%
Revenue Next 2Y6.07%
Revenue Next 3Y5.95%
Revenue Next 5Y5.88%
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
A is valuated rather expensively with a Price/Earnings ratio of 23.05.
Based on the Price/Earnings ratio, A is valued a bit cheaper than 76.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of A to the average of the S&P500 Index (27.27), we can say A is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.35, the valuation of A can be described as rather expensive.
78.18% of the companies in the same industry are more expensive than A, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.77. A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 20.35 |
4.2 Price Multiples
74.55% 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 70.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.95 | ||
| EV/EBITDA | 20.19 |
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)3.07
PEG (5Y)2.07
EPS Next 2Y8.03%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
A has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 1.09, A pays a better dividend. On top of this A pays more dividend than 96.36% of the companies listed in the same industry.
With a Dividend Yield of 0.78, A pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
On average, the dividend of A grows each year by 7.63%, which is quite nice.
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 2Y8.03%
EPS Next 3Y8.82%
125.63
+2.39 (+1.94%)
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 Change0.3%
Ins Owners0.13%
Ins Owner Change-0.13%
Market Cap35.62B
Analysts75.38
Price Target136.72 (8.83%)
Short Float %1.02%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)0.23%
PT rev (3m)-0.58%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 20.35 | ||
| P/S | 5.37 | ||
| P/FCF | 29.95 | ||
| P/OCF | 22.47 | ||
| P/B | 5.8 | ||
| P/tB | 30.52 | ||
| EV/EBITDA | 20.19 |
EPS(TTM)5.45
EY4.34%
EPS(NY)6.17
Fwd EY4.91%
FCF(TTM)4.19
FCFY3.34%
OCF(TTM)5.59
OCFY4.45%
SpS23.38
BVpS21.64
TBVpS4.12
PEG (NY)3.07
PEG (5Y)2.07
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 | 4.77 |
F-Score5
WACC10.12%
ROIC/WACC1.32
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)4.61%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%3.79%
EPS Next Y7.52%
EPS Next 2Y8.03%
EPS Next 3Y8.82%
EPS Next 5Y8.99%
Revenue 1Y (TTM)-4.73%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%10.14%
Revenue Next Year6.64%
Revenue Next 2Y6.07%
Revenue Next 3Y5.95%
Revenue Next 5Y5.88%
EBIT growth 1Y14.77%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year20.49%
EBIT Next 3Y11.88%
EBIT Next 5Y9.19%
FCF growth 1Y0.51%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y7.97%
OCF growth 3Y5.65%
OCF growth 5Y11.39%