AGCO CORP (AGCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGCO - US0010841023 - Common Stock
113.79 USD
-0.81 (-0.71%)
113.79 USD
0 (0%)
Taking everything into account, AGCO scores 5 out of 10 in our fundamental rating. AGCO was compared to 132 industry peers in the Machinery industry. AGCO has only an average score on both its financial health and profitability. AGCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- AGCO had positive earnings in the past year.
- In the past year AGCO had a positive cash flow from operations.
- AGCO had positive earnings in 4 of the past 5 years.
- In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.01%, AGCO is in line with its industry, outperforming 47.73% of the companies in the same industry.
- AGCO's Return On Equity of 8.36% is in line compared to the rest of the industry. AGCO outperforms 56.82% of its industry peers.
- The Return On Invested Capital of AGCO (6.08%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AGCO is significantly above the industry average of 10.24%.
- The last Return On Invested Capital (6.08%) for AGCO is well below the 3 year average (16.09%), which needs to be investigated, but indicates that AGCO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 8.36% | ||
| ROIC | 6.08% |
ROA(3y)5.09%
ROA(5y)6.01%
ROE(3y)12.24%
ROE(5y)15.46%
ROIC(3y)16.09%
ROIC(5y)14.59%
1.3 Margins
- AGCO has a Profit Margin of 3.73%. This is comparable to the rest of the industry: AGCO outperforms 47.73% of its industry peers.
- AGCO has a Operating Margin (6.55%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of AGCO has grown nicely.
- With a Gross Margin value of 25.02%, AGCO is not doing good in the industry: 65.15% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of AGCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 3.73% | ||
| GM | 25.02% |
OM growth 3Y-4.47%
OM growth 5Y6.13%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.49%
GM growth 5Y2.53%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AGCO is creating some value.
- Compared to 1 year ago, AGCO has about the same amount of shares outstanding.
- The number of shares outstanding for AGCO has been reduced compared to 5 years ago.
- Compared to 1 year ago, AGCO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.52 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AGCO has a Altman-Z score (2.52) which is comparable to the rest of the industry.
- The Debt to FCF ratio of AGCO is 3.80, which is a good value as it means it would take AGCO, 3.80 years of fcf income to pay off all of its debts.
- AGCO's Debt to FCF ratio of 3.80 is fine compared to the rest of the industry. AGCO outperforms 62.88% of its industry peers.
- AGCO has a Debt/Equity ratio of 0.63. This is a neutral value indicating AGCO is somewhat dependend on debt financing.
- AGCO has a worse Debt to Equity ratio (0.63) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.62
WACC9.76%
2.3 Liquidity
- AGCO has a Current Ratio of 1.58. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of AGCO (1.58) is worse than 69.70% of its industry peers.
- AGCO has a Quick Ratio of 1.58. This is a bad value and indicates that AGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.73, AGCO is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- AGCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.44%.
- The Earnings Per Share has been growing by 11.05% on average over the past years. This is quite good.
- Looking at the last year, AGCO shows a very negative growth in Revenue. The Revenue has decreased by -20.09% in the last year.
- AGCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)-45.44%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%98.53%
Revenue 1Y (TTM)-20.09%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-4.73%
3.2 Future
- AGCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
- The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y-32.5%
EPS Next 2Y-9.52%
EPS Next 3Y3.77%
EPS Next 5Y14.59%
Revenue Next Year-17.83%
Revenue Next 2Y-8.12%
Revenue Next 3Y-3.42%
Revenue Next 5Y2.41%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.40, AGCO is valued on the expensive side.
- Based on the Price/Earnings ratio, AGCO is valued a bit cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AGCO is valued at the same level.
- Based on the Price/Forward Earnings ratio of 18.53, the valuation of AGCO can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AGCO is valued a bit cheaper than 68.18% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. AGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaply inside the industry as 80.30% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AGCO is valued cheaply inside the industry as 90.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
- AGCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y-9.52%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
- AGCO has a Yearly Dividend Yield of 1.01%.
- Compared to an average industry Dividend Yield of 1.01, AGCO pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.01, AGCO pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
- The dividend of AGCO is nicely growing with an annual growth rate of 42.16%!
- AGCO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)42.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AGCO pays out 23.05% of its income as dividend. This is a sustainable payout ratio.
- AGCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.05%
EPS Next 2Y-9.52%
EPS Next 3Y3.77%
AGCO CORP / AGCO FAQ
What is the fundamental rating for AGCO stock?
ChartMill assigns a fundamental rating of 5 / 10 to AGCO.
Can you provide the valuation status for AGCO CORP?
ChartMill assigns a valuation rating of 5 / 10 to AGCO CORP (AGCO). This can be considered as Fairly Valued.
Can you provide the profitability details for AGCO CORP?
AGCO CORP (AGCO) has a profitability rating of 6 / 10.
What is the financial health of AGCO CORP (AGCO) stock?
The financial health rating of AGCO CORP (AGCO) is 4 / 10.
Is the dividend of AGCO CORP sustainable?
The dividend rating of AGCO CORP (AGCO) is 5 / 10 and the dividend payout ratio is 23.05%.