AGCO CORP (AGCO) Stock Fundamental Analysis
USA - NYSE:AGCO - US0010841023 - Common Stock
107.42 USD
+2.55 (+2.43%)
107.42 USD
0 (0%)
AGCO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 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 is not valued too expensively and it also shows a decent growth rate.
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.
AGCO had positive earnings in 4 of the past 5 years.
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 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 2.39%, AGCO is doing worse than 64.34% of the companies in the same industry.
With a Return On Invested Capital value of 6.00%, AGCO perfoms like the industry average, outperforming 44.96% of the companies in the same industry.
AGCO had an Average Return On Invested Capital over the past 3 years of 16.09%. This is significantly above the industry average of 10.00%.
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 65.12% of its industry peers.
AGCO's Operating Margin of 6.16% is in line compared to the rest of the industry. AGCO outperforms 41.09% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
The Gross Margin of AGCO (24.29%) is worse than 65.12% of its industry peers.
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.
The number of shares outstanding for AGCO has been reduced compared to 5 years ago.
Compared to 1 year ago, AGCO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 indicates that AGCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, AGCO is in line with its industry, outperforming 44.19% 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's Debt to FCF ratio of 4.31 is in line compared to the rest of the industry. AGCO outperforms 57.36% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that AGCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, AGCO is doing worse than 68.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.61
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.48 indicates that AGCO should not have too much problems paying its short term obligations.
AGCO has a Current ratio of 1.48. This is in the lower half of the industry: AGCO underperforms 75.19% 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.
Looking at the Quick ratio, with a value of 0.67, AGCO is doing worse than 86.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for AGCO have decreased strongly by -65.00% in the last year.
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 -24.27% 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)-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
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.
Based on estimates for the next years, AGCO will show a small growth in Revenue. The Revenue will grow by 3.24% on average per year.
EPS Next Y-34.17%
EPS Next 2Y-5.48%
EPS Next 3Y5.57%
EPS Next 5Y15.57%
Revenue Next Year-17.67%
Revenue Next 2Y-7.01%
Revenue Next 3Y-2.74%
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.
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 24.36, the valuation of AGCO can be described as rather expensive.
AGCO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.79, AGCO is valued at the same level.
With a Price/Forward Earnings ratio of 16.03, AGCO is valued correctly.
Based on the Price/Forward Earnings ratio, AGCO is valued a bit cheaper than the industry average as 70.54% of the companies are valued more expensively.
AGCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGCO is valued a bit cheaper than 76.74% of the companies in the same industry.
AGCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGCO is cheaper than 91.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.2
EPS Next 2Y-5.48%
EPS Next 3Y5.57%
5. Dividend
5.1 Amount
AGCO has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, AGCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, AGCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
On average, the dividend of AGCO grows each year by 42.16%, which is quite nice.
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.
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-5.48%
EPS Next 3Y5.57%
107.42
+2.55 (+2.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.07%
Inst Owner Change-10.57%
Ins Owners0.56%
Ins Owner Change-0.33%
Market Cap8.02B
Analysts70.48
Price Target123.24 (14.73%)
Short Float %3.96%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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%
PT rev (3m)16.78%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)22.29%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)15.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 16.03 | ||
| P/S | 0.79 | ||
| P/FCF | 11.66 | ||
| P/OCF | 8.2 | ||
| P/B | 1.92 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)4.41
EY4.11%
EPS(NY)6.7
Fwd EY6.24%
FCF(TTM)9.21
FCFY8.57%
OCF(TTM)13.11
OCFY12.2%
SpS136.32
BVpS55.86
TBVpS20.86
PEG (NY)N/A
PEG (5Y)2.2
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 | 2.42 |
F-Score4
WACC9.82%
ROIC/WACC0.61
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-34.17%
EPS Next 2Y-5.48%
EPS Next 3Y5.57%
EPS Next 5Y15.57%
Revenue 1Y (TTM)-24.27%
Revenue growth 3Y1.54%
Revenue growth 5Y5.22%
Sales Q2Q%-18.84%
Revenue Next Year-17.67%
Revenue Next 2Y-7.01%
Revenue Next 3Y-2.74%
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%