AGCO CORP (AGCO) Stock Fundamental Analysis
NYSE:AGCO - New York Stock Exchange, Inc. - US0010841023 - Common Stock - Currency: USD
Taking everything into account, AGCO scores 4 out of 10 in our fundamental rating. AGCO was compared to 128 industry peers in the Machinery industry. AGCO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years AGCO 4 years were profitable.
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 -5.07%, AGCO is doing worse than 75.00% of the companies in the same industry.
AGCO's Return On Equity of -15.29% is on the low side compared to the rest of the industry. AGCO is outperformed by 76.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.28%, AGCO is in line with its industry, 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 10.71%.
The last Return On Invested Capital (7.28%) 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 | -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
AGCO's Operating Margin of 6.64% is in line compared to the rest of the industry. AGCO outperforms 43.75% of its industry peers.
In the last couple of years the Operating Margin of AGCO has grown nicely.
With a Gross Margin value of 24.57%, AGCO is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
AGCO's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGCO is still 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.
AGCO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AGCO has a Altman-Z score (2.62) which is in line with its industry peers.
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.
AGCO has a Debt/Equity ratio of 0.75. This is a neutral value indicating AGCO is somewhat dependend on debt financing.
AGCO has a worse Debt to Equity ratio (0.75) than 71.88% of its industry peers.
| 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.
With a Current ratio value of 1.53, AGCO is not doing good in the industry: 74.22% of the companies in the same industry are doing better.
A Quick Ratio of 0.67 indicates that AGCO may have some problems paying its short term obligations.
AGCO's Quick ratio of 0.67 is on the low side compared to the rest of the industry. AGCO is outperformed by 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.
AGCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.05% yearly.
The Revenue for AGCO has decreased by -23.02% in the past year. This is quite bad
The Revenue has been growing slightly by 5.22% on average over the past years.
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
The Earnings Per Share is expected to grow by 15.57% on average over the next years. This is quite good.
AGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.24% yearly.
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
The Price/Earnings ratio is 18.45, which indicates a rather expensive current valuation of AGCO.
68.75% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (27.15), we can say AGCO is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.50 indicates a correct valuation of AGCO.
Based on the Price/Forward Earnings ratio, AGCO is valued a bit cheaper than 64.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. AGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
78.91% of the companies in the same industry are more expensive than AGCO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AGCO is valued a bit cheaper than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.67
EPS Next 2Y-8.68%
EPS Next 3Y0.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, AGCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.88, AGCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
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%
103.16
+0.75 (+0.73%)
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 Cap7.69B
Analysts70
Price Target105.53 (2.3%)
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)-0.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 16.5 | ||
| P/S | 0.71 | ||
| P/FCF | 15.35 | ||
| P/OCF | 9.08 | ||
| P/B | 2.02 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)5.59
EY5.42%
EPS(NY)6.25
Fwd EY6.06%
FCF(TTM)6.72
FCFY6.51%
OCF(TTM)11.37
OCFY11.02%
SpS144.59
BVpS51.08
TBVpS16.73
PEG (NY)N/A
PEG (5Y)1.67
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%