AGCO CORP (AGCO)
US0010841023 - Common Stock
We assign a fundamental rating of 7 out of 10 to AGCO. AGCO was compared to 132 industry peers in the Machinery industry. AGCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AGCO is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, AGCO could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year AGCO was profitable.
AGCO had a positive operating cash flow in the past year.
In the past 5 years AGCO has always been profitable.
In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
AGCO has a Return On Assets of 10.26%. This is amongst the best in the industry. AGCO outperforms 82.17% of its industry peers.
AGCO's Return On Equity of 25.16% is amongst the best of the industry. AGCO outperforms 86.05% of its industry peers.
The Return On Invested Capital of AGCO (18.87%) is better than 91.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGCO is significantly above the industry average of 10.74%.
The 3 year average ROIC (16.46%) for AGCO is below the current ROIC(18.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 25.16% | ||
| ROIC | 18.87% |
ROA(3y)9.61%
ROA(5y)7.09%
ROE(3y)24.78%
ROE(5y)18.61%
ROIC(3y)16.46%
ROIC(5y)13.46%
1.3 Margins
The Profit Margin of AGCO (8.13%) is better than 64.34% of its industry peers.
AGCO's Profit Margin has improved in the last couple of years.
AGCO's Operating Margin of 11.91% is fine compared to the rest of the industry. AGCO outperforms 62.02% of its industry peers.
In the last couple of years the Operating Margin of AGCO has grown nicely.
AGCO's Gross Margin of 26.21% is in line compared to the rest of the industry. AGCO outperforms 44.96% of its industry peers.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 8.13% | ||
| GM | 26.21% |
OM growth 3Y19.41%
OM growth 5Y17.32%
PM growth 3Y20.32%
PM growth 5Y21.59%
GM growth 3Y5.23%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AGCO is creating value.
Compared to 1 year ago, AGCO has less shares outstanding
Compared to 5 years ago, AGCO has less shares outstanding
AGCO has a better debt/assets ratio than last year.
2.2 Solvency
AGCO has an Altman-Z score of 3.53. This indicates that AGCO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.53, AGCO is doing good in the industry, outperforming 62.02% of the companies in the same industry.
The Debt to FCF ratio of AGCO is 2.38, which is a good value as it means it would take AGCO, 2.38 years of fcf income to pay off all of its debts.
AGCO's Debt to FCF ratio of 2.38 is fine compared to the rest of the industry. AGCO outperforms 75.97% of its industry peers.
AGCO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.30, AGCO is doing good in the industry, outperforming 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 3.53 |
ROIC/WACC2.1
WACC9%
2.3 Liquidity
A Current Ratio of 1.46 indicates that AGCO should not have too much problems paying its short term obligations.
AGCO's Current ratio of 1.46 is on the low side compared to the rest of the industry. AGCO is outperformed by 75.19% of its industry peers.
AGCO has a Quick Ratio of 1.46. This is a bad value and indicates that AGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AGCO (0.67) is worse than 82.17% of its industry peers.
AGCO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.30%, which is quite impressive.
The Earnings Per Share has been growing by 31.93% on average over the past years. This is a very strong growth
AGCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.92%.
Measured over the past years, AGCO shows a quite strong growth in Revenue. The Revenue has been growing by 9.04% on average per year.
EPS 1Y (TTM)25.3%
EPS 3Y40.56%
EPS 5Y31.93%
EPS growth Q2Q-15.44%
Revenue 1Y (TTM)13.92%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Revenue growth Q2Q-2.52%
3.2 Future
The Earnings Per Share is expected to decrease by -1.95% on average over the next years.
AGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y-14.71%
EPS Next 2Y-8.55%
EPS Next 3Y-3.22%
EPS Next 5Y-1.95%
Revenue Next Year-7.24%
Revenue Next 2Y-4.3%
Revenue Next 3Y-1.2%
Revenue Next 5Y3.3%
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 decreasing.
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
A Price/Earnings ratio of 7.50 indicates a rather cheap valuation of AGCO.
AGCO's Price/Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 94.57% of the companies in the same industry.
AGCO is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.79 indicates a reasonable valuation of AGCO.
Based on the Price/Forward Earnings ratio, AGCO is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, AGCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 95.35% of the companies listed in the same industry.
AGCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGCO is cheaper than 78.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
AGCO has an outstanding profitability rating, which may justify a higher PE ratio.
AGCO's earnings are expected to decrease with -3.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.55%
EPS Next 3Y-3.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, AGCO is not a good candidate for dividend investing.
AGCO's Dividend Yield is a higher than the industry average which is at 1.72.
With a Dividend Yield of 0.99, AGCO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of AGCO grows each year by 59.11%, which is quite nice.
AGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
AGCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)59.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
AGCO pays out 39.05% of its income as dividend. This is a sustainable payout ratio.
DP39.05%
EPS Next 2Y-8.55%
EPS Next 3Y-3.22%
AGCO CORP
NYSE:AGCO (4/26/2024, 7:04:00 PM)
After market: 116.61 0 (0%)116.61
-1.06 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 8.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.26% | ||
| ROE | 25.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.91% | ||
| PM (TTM) | 8.13% | ||
| GM | 26.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.3%
EPS 3Y40.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.92%
Revenue growth 3Y16.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y