AGILENT TECHNOLOGIES INC (A) Stock Fundamental Analysis
USA - NYSE:A - US00846U1016 - Common Stock
136.62 USD
-3.49 (-2.49%)
136.62 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to A. A was compared to 56 industry peers in the Life Sciences Tools & Services industry. A has an excellent profitability rating, but there are some minor concerns on its financial health. A is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years A had a positive operating cash flow.
1.2 Ratios
A has a Return On Assets of 9.98%. This is amongst the best in the industry. A outperforms 89.29% of its industry peers.
A's Return On Equity of 19.15% is amongst the best of the industry. A outperforms 89.29% of its industry peers.
A has a better Return On Invested Capital (12.99%) than 87.50% 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 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.98% | ||
| ROE | 19.15% | ||
| ROIC | 12.99% |
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 17.97%, A belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
In the last couple of years the Profit Margin of A has remained more or less at the same level.
A's Operating Margin of 22.44% is amongst the best of the industry. A outperforms 92.86% of its industry peers.
A's Operating Margin has improved in the last couple of years.
A has a Gross Margin (52.92%) which is in line with its industry peers.
A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.44% | ||
| PM (TTM) | 17.97% | ||
| GM | 52.92% |
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.
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.
Compared to 1 year ago, A has a worse debt to assets ratio.
2.2 Solvency
A has an Altman-Z score of 5.39. This indicates that A is financially healthy and has little risk of bankruptcy at the moment.
A has a Altman-Z score of 5.39. This is amongst the best in the industry. A outperforms 82.14% of its industry peers.
The Debt to FCF ratio of A is 3.13, which is a good value as it means it would take A, 3.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.13, A is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A has a Debt/Equity ratio of 0.54. This is a neutral value indicating A is somewhat dependend on debt financing.
The Debt to Equity ratio of A (0.54) is worse than 66.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 5.39 |
ROIC/WACC1.26
WACC10.29%
2.3 Liquidity
A has a Current Ratio of 2.25. This indicates that A is financially healthy and has no problem in meeting its short term obligations.
A has a Current ratio (2.25) which is comparable to the rest of the industry.
A has a Quick Ratio of 1.71. 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 1.71 is in line compared to the rest of the industry. A outperforms 44.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.71 |
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.
A shows a small growth in Revenue. In the last year, the Revenue has grown by 4.48%.
The Revenue has been growing slightly by 4.75% on average over the past years.
EPS 1Y (TTM)4.61%
EPS 3Y6.82%
EPS 5Y11.14%
EPS Q2Q%3.79%
Revenue 1Y (TTM)4.48%
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 Y7.48%
EPS Next 2Y7.8%
EPS Next 3Y8.65%
EPS Next 5Y8.99%
Revenue Next Year6.72%
Revenue Next 2Y6.1%
Revenue Next 3Y5.97%
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
The Price/Earnings ratio is 25.07, which means the current valuation is very expensive for A.
A's Price/Earnings ratio is a bit cheaper when compared to the industry. A is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. A is around the same levels.
A Price/Forward Earnings ratio of 22.22 indicates a rather expensive valuation of A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of A indicates a somewhat cheap valuation: A is cheaper than 78.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, A is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, A is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.6 | ||
| EV/EBITDA | 22.96 |
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)3.35
PEG (5Y)2.25
EPS Next 2Y7.8%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
A has a yearly dividend return of 0.72%, which is pretty low.
A's Dividend Yield is rather good when compared to the industry average which is at 0.51. A pays more dividend than 98.21% of the companies in the same industry.
With a Dividend Yield of 0.72, A pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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.
The dividend of A decreased recently.
Dividend Growth(5Y)7.63%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
A pays out 22.95% of its income as dividend. This is a 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.
DP22.95%
EPS Next 2Y7.8%
EPS Next 3Y8.65%
136.62
-3.49 (-2.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners92.27%
Inst Owner Change0%
Ins Owners0.13%
Ins Owner Change0.02%
Market Cap38.73B
Analysts75.38
Price Target140.65 (2.95%)
Short Float %1.13%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.95
Dividend Growth(5Y)7.63%
DP22.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.04%
Min EPS beat(2)-1.64%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-1.64%
Max EPS beat(4)1.57%
EPS beat(8)7
Avg EPS beat(8)1.26%
EPS beat(12)10
Avg EPS beat(12)1.89%
EPS beat(16)13
Avg EPS beat(16)2.06%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)0.54%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-1.23%
Max Revenue beat(4)2.3%
Revenue beat(8)3
Avg Revenue beat(8)-0.06%
Revenue beat(12)6
Avg Revenue beat(12)0.29%
Revenue beat(16)7
Avg Revenue beat(16)0.09%
PT rev (1m)2.88%
PT rev (3m)3.11%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)3.55%
Revenue NY rev (1m)1.89%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 22.22 | ||
| P/S | 5.71 | ||
| P/FCF | 35.6 | ||
| P/OCF | 25.91 | ||
| P/B | 6.08 | ||
| P/tB | 27.16 | ||
| EV/EBITDA | 22.96 |
EPS(TTM)5.45
EY3.99%
EPS(NY)6.15
Fwd EY4.5%
FCF(TTM)3.84
FCFY2.81%
OCF(TTM)5.27
OCFY3.86%
SpS23.94
BVpS22.47
TBVpS5.03
PEG (NY)3.35
PEG (5Y)2.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.98% | ||
| ROE | 19.15% | ||
| ROCE | 14.74% | ||
| ROIC | 12.99% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 34.51% | ||
| OM | 22.44% | ||
| PM (TTM) | 17.97% | ||
| GM | 52.92% | ||
| FCFM | 16.03% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 142.31% | ||
| Cap/Sales | 6% | ||
| Interest Coverage | 17.92 | ||
| Cash Conversion | 82.64% | ||
| Profit Quality | 89.18% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 5.39 |
F-Score5
WACC10.29%
ROIC/WACC1.26
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 Y7.48%
EPS Next 2Y7.8%
EPS Next 3Y8.65%
EPS Next 5Y8.99%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y1%
Revenue growth 5Y4.75%
Sales Q2Q%10.14%
Revenue Next Year6.72%
Revenue Next 2Y6.1%
Revenue Next 3Y5.97%
Revenue Next 5Y5.88%
EBIT growth 1Y-5.11%
EBIT growth 3Y5.1%
EBIT growth 5Y10.42%
EBIT Next Year19.73%
EBIT Next 3Y11.85%
EBIT Next 5Y9.19%
FCF growth 1Y-23.38%
FCF growth 3Y1.94%
FCF growth 5Y9.68%
OCF growth 1Y-12.27%
OCF growth 3Y5.65%
OCF growth 5Y11.39%