AGCO CORP (AGCO) Stock Fundamental Analysis
USA - NYSE:AGCO - US0010841023 - Common Stock
107.92 USD
-0.84 (-0.77%)
107.92 USD
0 (0%)
Taking everything into account, AGCO scores 4 out of 10 in our fundamental rating. AGCO was compared to 130 industry peers in the Machinery industry. While AGCO is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years AGCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGCO (0.81%) is worse than 65.38% of its industry peers.
AGCO's Return On Equity of 2.39% is on the low side compared to the rest of the industry. AGCO is outperformed by 63.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.00%, AGCO is in line with its industry, outperforming 46.15% 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 10.00%.
The 3 year average ROIC (16.09%) for AGCO is well above the current ROIC(6.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.39% | ||
| ROIC | 6% |
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 0.98%. This is in the lower half of the industry: AGCO underperforms 63.85% of its industry peers.
Looking at the Operating Margin, with a value of 6.16%, AGCO is in line with its industry, outperforming 40.77% 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 (24.29%) than 66.15% of its industry peers.
AGCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 0.98% | ||
| GM | 24.29% |
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.
AGCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AGCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.44 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
AGCO has a Altman-Z score (2.44) which is comparable to the rest of the industry.
The Debt to FCF ratio of AGCO is 4.31, which is a neutral value as it means it would take AGCO, 4.31 years of fcf income to pay off all of its debts.
AGCO has a Debt to FCF ratio (4.31) which is in line with its industry peers.
A Debt/Equity ratio of 0.69 indicates that AGCO is somewhat dependend on debt financing.
AGCO has a worse Debt to Equity ratio (0.69) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.63
WACC9.51%
2.3 Liquidity
AGCO has a Current Ratio of 1.48. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
AGCO's Current ratio of 1.48 is on the low side compared to the rest of the industry. AGCO is outperformed by 74.62% of its industry peers.
A Quick Ratio of 0.67 indicates that AGCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, AGCO is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
AGCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.00%.
The Earnings Per Share has been growing by 11.05% on average over the past years. This is quite good.
AGCO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.27%.
AGCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)-65%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-46.64%
Revenue 1Y (TTM)-24.27%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-18.84%
3.2 Future
Based on estimates for the next years, AGCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.57% on average per year.
The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y-34.73%
EPS Next 2Y-6.7%
EPS Next 3Y4.64%
EPS Next 5Y15.57%
Revenue Next Year-17.64%
Revenue Next 2Y-7.18%
Revenue Next 3Y-2.79%
Revenue Next 5Y3.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 24.47 indicates a rather expensive valuation of AGCO.
AGCO's Price/Earnings ratio is in line with the industry average.
AGCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.53, the valuation of AGCO can be described as correct.
Based on the Price/Forward Earnings ratio, AGCO is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AGCO to the average of the S&P500 Index (22.88), we can say AGCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGCO is valued a bit cheaper than 72.31% of the companies in the same industry.
90.77% of the companies in the same industry are more expensive than AGCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.21
EPS Next 2Y-6.7%
EPS Next 3Y4.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, AGCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.78, AGCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 86.85% of its income as dividend. This is not a sustainable payout ratio.
AGCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP86.85%
EPS Next 2Y-6.7%
EPS Next 3Y4.64%
107.92
-0.84 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.07%
Inst Owner Change1.21%
Ins Owners0.56%
Ins Owner Change-1.34%
Market Cap8.05B
Revenue(TTM)10.17B
Net Income(TTM)99.60M
Analysts70.48
Price Target122.68 (13.68%)
Short Float %4.5%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend3.67
Dividend Growth(5Y)42.16%
DP86.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)192.14%
Min EPS beat(2)22.67%
Max EPS beat(2)361.6%
EPS beat(4)3
Avg EPS beat(4)88.02%
Min EPS beat(4)-38.3%
Max EPS beat(4)361.6%
EPS beat(8)5
Avg EPS beat(8)43.6%
EPS beat(12)8
Avg EPS beat(12)33.36%
EPS beat(16)12
Avg EPS beat(16)33.29%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)2.93%
Revenue beat(4)1
Avg Revenue beat(4)-5.38%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)2.93%
Revenue beat(8)1
Avg Revenue beat(8)-5.5%
Revenue beat(12)4
Avg Revenue beat(12)-3.74%
Revenue beat(16)5
Avg Revenue beat(16)-3.3%
PT rev (1m)-0.45%
PT rev (3m)13.33%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)18.68%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)13.51%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)6.57%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 16.53 | ||
| P/S | 0.79 | ||
| P/FCF | 11.72 | ||
| P/OCF | 8.23 | ||
| P/B | 1.93 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)4.41
EY4.09%
EPS(NY)6.53
Fwd EY6.05%
FCF(TTM)9.21
FCFY8.53%
OCF(TTM)13.11
OCFY12.14%
SpS136.32
BVpS55.86
TBVpS20.86
PEG (NY)N/A
PEG (5Y)2.21
Graham Number74.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.81% | ||
| ROE | 2.39% | ||
| ROCE | 7.37% | ||
| ROIC | 6% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 9.89% | ||
| OM | 6.16% | ||
| PM (TTM) | 0.98% | ||
| GM | 24.29% | ||
| FCFM | 6.76% |
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%
ROICexgc growth 3Y-11.68%
ROICexgc 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-Score4
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.31 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 92.67% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.98% | ||
| Profit Quality | 689.96% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.44 |
F-Score4
WACC9.51%
ROIC/WACC0.63
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)-65%
EPS 3Y-10.24%
EPS 5Y11.05%
EPS Q2Q%-46.64%
EPS Next Y-34.73%
EPS Next 2Y-6.7%
EPS Next 3Y4.64%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-24.27%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-18.84%
Revenue Next Year-17.64%
Revenue Next 2Y-7.18%
Revenue Next 3Y-2.79%
Revenue Next 5Y3.24%
EBIT growth 1Y-54.84%
EBIT growth 3Y-3%
EBIT growth 5Y11.67%
EBIT Next Year-1.14%
EBIT Next 3Y10.58%
EBIT Next 5Y14.3%
FCF growth 1Y24.2%
FCF growth 3Y-8.75%
FCF growth 5Y-6.83%
OCF growth 1Y-5.92%
OCF growth 3Y1.48%
OCF growth 5Y-0.17%
AGCO CORP / AGCO FAQ
What is the ChartMill fundamental rating of AGCO CORP (AGCO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AGCO.
What is the valuation status for AGCO stock?
ChartMill assigns a valuation rating of 4 / 10 to AGCO CORP (AGCO). This can be considered as Fairly Valued.
What is the profitability of AGCO stock?
AGCO CORP (AGCO) has a profitability rating of 5 / 10.
How financially healthy is AGCO CORP?
The financial health rating of AGCO CORP (AGCO) is 3 / 10.
How sustainable is the dividend of AGCO CORP (AGCO) stock?
The dividend rating of AGCO CORP (AGCO) is 3 / 10 and the dividend payout ratio is 86.85%.