AGCO CORP (AGCO) Stock Fundamental Analysis
NYSE:AGCO - New York Stock Exchange, Inc. - US0010841023 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AGCO. AGCO was compared to 128 industry peers in the Machinery industry. There are concerns on the financial health of AGCO while its profitability can be described as average. 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.
AGCO had a positive operating cash flow in the past year.
Of the past 5 years AGCO 4 years were profitable.
Each year in the past 5 years AGCO had a positive operating cash flow.
1.2 Ratios
AGCO has a Return On Assets of -5.07%. This is in the lower half of the industry: AGCO underperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of -15.29%, AGCO is doing worse than 76.56% of the companies in the same industry.
With a Return On Invested Capital value of 7.28%, AGCO perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGCO is significantly above the industry average of 10.72%.
The 3 year average ROIC (16.09%) for AGCO is well above the current ROIC(7.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.07% | ||
| ROE | -15.29% | ||
| ROIC | 7.28% |
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
With a Operating Margin value of 6.64%, AGCO perfoms like the industry average, outperforming 42.97% of the companies in the same industry.
In the last couple of years the Operating Margin of AGCO has grown nicely.
AGCO has a worse Gross Margin (24.57%) than 65.63% of its industry peers.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | N/A | ||
| GM | 24.57% |
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
AGCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AGCO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AGCO has less shares outstanding
Compared to 1 year ago, AGCO has a worse debt to assets ratio.
2.2 Solvency
AGCO has an Altman-Z score of 2.62. This is not the best score and indicates that AGCO is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of AGCO (2.62) is comparable to the rest of the industry.
The Debt to FCF ratio of AGCO is 5.87, which is a neutral value as it means it would take AGCO, 5.87 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 5.87, AGCO perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that AGCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, AGCO is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.72
WACC10.07%
2.3 Liquidity
AGCO has a Current Ratio of 1.53. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
AGCO has a worse Current ratio (1.53) than 73.44% of its industry peers.
AGCO has a Quick Ratio of 1.53. 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 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for AGCO have decreased strongly by -61.07% in the last year.
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 -23.02% in the last year.
Measured over the past years, AGCO shows a small growth in Revenue. The Revenue has been growing by 5.22% on average per year.
EPS 1Y (TTM)-61.07%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-82.33%
Revenue 1Y (TTM)-23.02%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-29.99%
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 15.57% yearly.
The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y-43.06%
EPS Next 2Y-8.68%
EPS Next 3Y0.29%
EPS Next 5Y15.57%
Revenue Next Year-19.37%
Revenue Next 2Y-7.7%
Revenue Next 3Y-3.57%
Revenue Next 5Y3.24%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AGCO is valuated rather expensively with a Price/Earnings ratio of 18.32.
AGCO's Price/Earnings ratio is a bit cheaper when compared to the industry. AGCO is cheaper than 69.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (26.92), we can say AGCO is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.38, which indicates a correct valuation of AGCO.
66.41% of the companies in the same industry are more expensive than AGCO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.49. AGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
AGCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AGCO is cheaper than 78.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGCO is valued a bit cheaper than the industry average as 77.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.24 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.66
EPS Next 2Y-8.68%
EPS Next 3Y0.29%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
AGCO's Dividend Yield is a higher than the industry average which is at 1.89.
Compared to an average S&P500 Dividend Yield of 2.43, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
On average, the dividend of AGCO grows each year by 42.16%, which is quite nice.
AGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)42.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AGCO are negative and hence is the payout ratio. AGCO will probably not be able to sustain this dividend level.
AGCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-46.9%
EPS Next 2Y-8.68%
EPS Next 3Y0.29%
102.41
-0.16 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change0.57%
Ins Owners0.59%
Ins Owner Change8.45%
Market Cap7.64B
Analysts70
Price Target105.53 (3.05%)
Short Float %5.91%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend3.67
Dividend Growth(5Y)42.16%
DP-46.9%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)183.85%
Min EPS beat(2)6.09%
Max EPS beat(2)361.6%
EPS beat(4)2
Avg EPS beat(4)78.72%
Min EPS beat(4)-38.3%
Max EPS beat(4)361.6%
EPS beat(8)5
Avg EPS beat(8)42.37%
EPS beat(12)8
Avg EPS beat(12)32.33%
EPS beat(16)12
Avg EPS beat(16)33.65%
Revenue beat(2)0
Avg Revenue beat(2)-6.16%
Min Revenue beat(2)-10.53%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-8.26%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-1.8%
Revenue beat(8)1
Avg Revenue beat(8)-5.73%
Revenue beat(12)3
Avg Revenue beat(12)-4.17%
Revenue beat(16)5
Avg Revenue beat(16)-3.28%
PT rev (1m)4.28%
PT rev (3m)0.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.32 | ||
| Fwd PE | 16.38 | ||
| P/S | 0.71 | ||
| P/FCF | 15.24 | ||
| P/OCF | 9.01 | ||
| P/B | 2 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)5.59
EY5.46%
EPS(NY)6.25
Fwd EY6.11%
FCF(TTM)6.72
FCFY6.56%
OCF(TTM)11.37
OCFY11.1%
SpS144.59
BVpS51.08
TBVpS16.73
PEG (NY)N/A
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.07% | ||
| ROE | -15.29% | ||
| ROCE | 8.93% | ||
| ROIC | 7.28% | ||
| ROICexc | 7.83% | ||
| ROICexgc | 11.83% | ||
| OM | 6.64% | ||
| PM (TTM) | N/A | ||
| GM | 24.57% | ||
| FCFM | 4.65% |
ROA(3y)5.09%
ROA(5y)6.01%
ROE(3y)12.24%
ROE(5y)15.46%
ROIC(3y)16.09%
ROIC(5y)14.59%
ROICexc(3y)17.91%
ROICexc(5y)16.77%
ROICexgc(3y)25.88%
ROICexgc(5y)25.33%
ROCE(3y)19.52%
ROCE(5y)17.75%
ROICexcg growth 3Y-11.68%
ROICexcg growth 5Y2.47%
ROICexc growth 3Y-13.04%
ROICexc growth 5Y3.12%
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%
F-Score3
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 104.75% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.62 |
F-Score3
WACC10.07%
ROIC/WACC0.72
Cap/Depr(3y)147.42%
Cap/Depr(5y)127.45%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.07%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-82.33%
EPS Next Y-43.06%
EPS Next 2Y-8.68%
EPS Next 3Y0.29%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-23.02%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-29.99%
Revenue Next Year-19.37%
Revenue Next 2Y-7.7%
Revenue Next 3Y-3.57%
Revenue Next 5Y3.24%
EBIT growth 1Y-55.3%
EBIT growth 3Y-3%
EBIT growth 5Y11.67%
EBIT Next Year-6.1%
EBIT Next 3Y8.73%
EBIT Next 5Y14.3%
FCF growth 1Y22.15%
FCF growth 3Y-8.75%
FCF growth 5Y-6.83%
OCF growth 1Y-1.15%
OCF growth 3Y1.48%
OCF growth 5Y-0.17%