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 127 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
In the past year AGCO was profitable.
AGCO had a positive operating cash flow in the past year.
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
AGCO has a Return On Assets of 0.81%. This is in the lower half of the industry: AGCO underperforms 66.93% of its industry peers.
Looking at the Return On Equity, with a value of 2.39%, AGCO is doing worse than 63.78% of the companies in the same industry.
AGCO has a Return On Invested Capital (6.00%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for AGCO is significantly above the industry average of 10.56%.
The last Return On Invested Capital (6.00%) 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 | 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 65.35% of its industry peers.
AGCO's Operating Margin of 6.16% is in line compared to the rest of the industry. AGCO outperforms 41.73% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.29%, AGCO is doing worse than 66.14% of the companies in the same industry.
In the last couple of years the Gross Margin of AGCO has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGCO is still creating some value.
AGCO has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.46 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.46, AGCO perfoms like the industry average, outperforming 42.52% of the companies in the same industry.
AGCO has a debt to FCF ratio of 4.31. This is a neutral value as AGCO would need 4.31 years to pay back of all of its debts.
AGCO has a Debt to FCF ratio (4.31) which is comparable to the rest of the industry.
AGCO has a Debt/Equity ratio of 0.69. This is a neutral value indicating AGCO is somewhat dependend on debt financing.
The Debt to Equity ratio of AGCO (0.69) is worse than 69.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.6
WACC9.93%
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 has a Current ratio of 1.48. This is in the lower half of the industry: AGCO underperforms 77.17% of its industry peers.
AGCO has a Quick Ratio of 1.48. This is a bad value and indicates that AGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
AGCO has a Quick ratio of 0.67. This is amonst the worse of the industry: AGCO underperforms 88.19% of its industry peers.
| 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%.
Measured over the past years, AGCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.05% on average per year.
Looking at the last year, AGCO shows a very negative growth in Revenue. The Revenue has decreased by -24.27% in the last year.
The Revenue has been growing slightly by 5.22% on average over the past years.
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
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-42.5%
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
EPS Next 5Y15.57%
Revenue Next Year-19.45%
Revenue Next 2Y-8.16%
Revenue Next 3Y-3.64%
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.
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
Based on the Price/Earnings ratio of 25.45, the valuation of AGCO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AGCO.
AGCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.89 indicates a rather expensive valuation of AGCO.
62.99% 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 35.34. AGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 17.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGCO is valued a bit cheaper than the industry average as 72.44% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 86.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.19 | ||
| EV/EBITDA | 11.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.3
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, AGCO has a reasonable but not impressive dividend return.
AGCO's Dividend Yield is a higher than the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.36, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of AGCO is nicely growing with an annual growth rate of 42.16%!
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
AGCO pays out 86.85% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AGCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP86.85%
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
112.25
+0.87 (+0.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners98.97%
Inst Owner Change-10.59%
Ins Owners0.58%
Ins Owner Change-0.17%
Market Cap8.37B
Analysts70.48
Price Target120.27 (7.14%)
Short Float %6.94%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)13.97%
PT rev (3m)18.85%
EPS NQ rev (1m)21.16%
EPS NQ rev (3m)19.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)7.21%
Revenue NQ rev (3m)9.39%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 17.89 | ||
| P/S | 0.82 | ||
| P/FCF | 12.19 | ||
| P/OCF | 8.56 | ||
| P/B | 2.01 | ||
| P/tB | 5.38 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)4.41
EY3.93%
EPS(NY)6.27
Fwd EY5.59%
FCF(TTM)9.21
FCFY8.21%
OCF(TTM)13.11
OCFY11.68%
SpS136.36
BVpS55.88
TBVpS20.87
PEG (NY)N/A
PEG (5Y)2.3
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%
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-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 | 2.46 |
F-Score4
WACC9.93%
ROIC/WACC0.6
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-42.5%
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-24.27%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-18.84%
Revenue Next Year-19.45%
Revenue Next 2Y-8.16%
Revenue Next 3Y-3.64%
Revenue Next 5Y3.24%
EBIT growth 1Y-54.84%
EBIT growth 3Y-3%
EBIT growth 5Y11.67%
EBIT Next Year-1.9%
EBIT Next 3Y10.86%
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%