AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
NYSE:A - New York Stock Exchange, Inc. - US00846U1016 - Common Stock - Currency: USD
A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years A has been profitable.
In the past 5 years A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.59%, A belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
A has a better Return On Equity (19.00%) than 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.32%, A belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
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
A's Profit Margin of 17.59% is amongst the best of the industry. A outperforms 94.55% of its industry peers.
In the last couple of years the Profit Margin of A has remained more or less at the same level.
A has a Operating Margin of 23.33%. This is amongst the best in the industry. A outperforms 92.73% of its industry peers.
A's Operating Margin has improved in the last couple of years.
A has a Gross Margin of 53.77%. This is in the better half of the industry: A outperforms 63.64% of its industry peers.
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
The number of shares outstanding for A has been reduced compared to 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 4.73. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
A has a Altman-Z score of 4.73. This is amongst the best in the industry. A outperforms 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.
A has a Debt to FCF ratio of 2.94. This is in the better half of the industry: A outperforms 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.
The Debt to Equity ratio of A (0.57) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 4.73 |
ROIC/WACC1.38
WACC9.67%
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.
A's Current ratio of 2.09 is in line compared to the rest of the industry. A outperforms 43.64% of its industry peers.
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.
With a Quick ratio value of 1.60, A perfoms like the industry average, outperforming 43.64% of the companies in the same 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.
A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
Looking at the last year, A shows a small growth in Revenue. The Revenue has grown by 0.56% in the last 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.
A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y7.41%
EPS Next 2Y8.04%
EPS Next 3Y8.81%
EPS Next 5Y8.67%
Revenue Next Year4.52%
Revenue Next 2Y5.08%
Revenue Next 3Y5.5%
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
The Price/Earnings ratio is 22.48, which indicates a rather expensive current valuation of A.
78.18% of the companies in the same industry are more expensive than A, based on the Price/Earnings ratio.
A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 19.66, which indicates a rather expensive current valuation of A.
80.00% of the companies in the same industry are more expensive than A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of A to the average of the S&P500 Index (21.90), we can say A is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, A is valued a bit cheaper than the industry average as 76.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 20 |
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)3.03
PEG (5Y)2.02
EPS Next 2Y8.04%
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.
Compared to an average industry Dividend Yield of 0.51, A pays a better dividend. On top of this A pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of A grows each year by 7.63%, which is quite nice.
A has paid a dividend for at least 10 years, which is 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
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 2Y8.04%
EPS Next 3Y8.81%
121.38
+0.72 (+0.6%)
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 Change0.44%
Ins Owners0.18%
Ins Owner Change-0.11%
Market Cap34.61B
Analysts76.3
Price Target136.4 (12.37%)
Short Float %1.45%
Short Ratio2
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)-4.65%
PT rev (3m)-11.04%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 19.66 | ||
| P/S | 5.22 | ||
| P/FCF | 29.1 | ||
| P/OCF | 21.83 | ||
| P/B | 5.64 | ||
| P/tB | 29.65 | ||
| EV/EBITDA | 20 |
EPS(TTM)5.4
EY4.45%
EPS(NY)6.17
Fwd EY5.09%
FCF(TTM)4.17
FCFY3.44%
OCF(TTM)5.56
OCFY4.58%
SpS23.25
BVpS21.52
TBVpS4.09
PEG (NY)3.03
PEG (5Y)2.02
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 | 4.73 |
F-Score5
WACC9.67%
ROIC/WACC1.38
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 Y7.41%
EPS Next 2Y8.04%
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 Year4.52%
Revenue Next 2Y5.08%
Revenue Next 3Y5.5%
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%