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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AGCO was profitable.
AGCO had a positive operating cash flow in the past year.
AGCO had positive earnings in 4 of the past 5 years.
In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -5.07%, AGCO is not doing good in the industry: 74.80% of the companies in the same industry are doing better.
AGCO has a Return On Equity of -15.29%. This is in the lower half of the industry: AGCO underperforms 76.38% 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 51.18% 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 10.91%.
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
AGCO has a Operating Margin of 6.64%. This is comparable to the rest of the industry: AGCO outperforms 43.31% 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 24.57%, 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 | 6.64% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AGCO is creating some value.
AGCO has about the same amout of shares outstanding than it did 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
AGCO has an Altman-Z score of 2.68. 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 (2.68) is comparable to the rest of the industry.
AGCO has a debt to FCF ratio of 5.87. This is a neutral value as AGCO would need 5.87 years to pay back of all of its debts.
AGCO has a Debt to FCF ratio of 5.87. This is comparable to the rest of the industry: AGCO outperforms 49.61% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that AGCO is somewhat dependend on debt financing.
AGCO's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. AGCO is outperformed by 71.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.74
WACC9.84%
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's Current ratio of 1.53 is on the low side compared to the rest of the industry. AGCO is outperformed by 74.02% 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 89.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| 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 -61.07%.
The Earnings Per Share has been growing by 11.05% on average over the past years. This is quite good.
The Revenue for AGCO has decreased by -23.02% in the past year. This is quite bad
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
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-19.57%
Revenue Next 2Y-7.83%
Revenue Next 3Y-3.58%
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
The Price/Earnings ratio is 20.10, which indicates a rather expensive current valuation of AGCO.
Based on the Price/Earnings ratio, AGCO is valued a bit cheaper than the industry average as 64.57% of the companies are valued more expensively.
AGCO is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.91, the valuation of AGCO can be described as rather expensive.
AGCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AGCO is cheaper than 63.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AGCO to the average of the S&P500 Index (37.67), we can say AGCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 17.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGCO indicates a somewhat cheap valuation: AGCO is cheaper than 77.17% 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 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 10.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.05%.
Compared to an average industry Dividend Yield of 1.85, 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of AGCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-46.9%
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
112.38
+1.87 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change-0.06%
Ins Owners0.59%
Ins Owner Change8.38%
Market Cap8.38B
Analysts70
Price Target108.25 (-3.68%)
Short Float %6.79%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)2.58%
PT rev (3m)11.17%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)4.37%
EPS NY rev (1m)0.99%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)2.73%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 17.91 | ||
| P/S | 0.78 | ||
| P/FCF | 16.73 | ||
| P/OCF | 9.89 | ||
| P/B | 2.2 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 10.17 |
EPS(TTM)5.59
EY4.97%
EPS(NY)6.27
Fwd EY5.58%
FCF(TTM)6.72
FCFY5.98%
OCF(TTM)11.36
OCFY10.11%
SpS144.55
BVpS51.06
TBVpS16.73
PEG (NY)N/A
PEG (5Y)1.82
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 | 2.68 |
F-Score3
WACC9.84%
ROIC/WACC0.74
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-42.5%
EPS Next 2Y-8.54%
EPS Next 3Y1.61%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-23.02%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-29.99%
Revenue Next Year-19.57%
Revenue Next 2Y-7.83%
Revenue Next 3Y-3.58%
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%