AGCO CORP (AGCO)

US0010841023 - Common Stock

107.09  -2.23 (-2.04%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to AGCO. AGCO was compared to 133 industry peers in the Machinery industry. While AGCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AGCO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make AGCO a good candidate for value investing.



8

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.
Of the past 5 years AGCO 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of AGCO (10.17%) is better than 83.21% of its industry peers.
AGCO has a better Return On Equity (26.51%) than 87.79% of its industry peers.
With an excellent Return On Invested Capital value of 19.87%, AGCO belongs to the best of the industry, outperforming 93.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGCO is above the industry average of 10.67%.
The last Return On Invested Capital (19.87%) for AGCO is above the 3 year average (13.89%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.17%
ROE 26.51%
ROIC 19.87%
ROA(3y)7.87%
ROA(5y)5.79%
ROE(3y)21.17%
ROE(5y)15.53%
ROIC(3y)13.89%
ROIC(5y)11.72%

1.3 Margins

AGCO has a better Profit Margin (7.96%) than 63.36% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
The Operating Margin of AGCO (12.29%) is better than 65.65% of its industry peers.
AGCO's Operating Margin has improved in the last couple of years.
The Gross Margin of AGCO (25.74%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AGCO has grown nicely.
Industry RankSector Rank
OM 12.29%
PM (TTM) 7.96%
GM 25.74%
OM growth 3Y20.49%
OM growth 5Y15.7%
PM growth 3Y72%
PM growth 5Y25.73%
GM growth 3Y2.63%
GM growth 5Y2.23%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AGCO is creating value.
AGCO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

AGCO has an Altman-Z score of 3.51. This indicates that AGCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.51, AGCO is in the better half of the industry, outperforming 66.41% of the companies in the same industry.
The Debt to FCF ratio of AGCO is 2.35, which is a good value as it means it would take AGCO, 2.35 years of fcf income to pay off all of its debts.
AGCO has a Debt to FCF ratio of 2.35. This is in the better half of the industry: AGCO outperforms 76.34% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that AGCO is not too dependend on debt financing.
AGCO has a Debt to Equity ratio (0.45) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.35
Altman-Z 3.51
ROIC/WACC2.33
WACC8.54%

2.3 Liquidity

A Current Ratio of 1.62 indicates that AGCO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.62, AGCO is not doing good in the industry: 71.76% of the companies in the same industry are doing better.
AGCO has a Quick Ratio of 1.62. 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 0.72, AGCO is doing worse than 83.21% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 0.72

6

3. Growth

3.1 Past

AGCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.37%, which is quite impressive.
The Earnings Per Share has been growing by 32.66% on average over the past years. This is a very strong growth
The Revenue has grown by 21.86% in the past year. This is a very strong growth!
AGCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.78% yearly.
EPS 1Y (TTM)47.37%
EPS 3Y40.86%
EPS 5Y32.66%
EPS growth Q2Q24.84%
Revenue 1Y (TTM)21.86%
Revenue growth 3Y11.85%
Revenue growth 5Y8.78%
Revenue growth Q2Q10.7%

3.2 Future

The Earnings Per Share is expected to grow by 2.98% on average over the next years.
AGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
EPS Next Y29.74%
EPS Next 2Y4.38%
EPS Next 3Y1.15%
EPS Next 5Y2.98%
Revenue Next Year17.08%
Revenue Next 2Y4.4%
Revenue Next 3Y2.34%
Revenue Next 5Y5.91%

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 decreasing.
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.

9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.59, the valuation of AGCO can be described as very cheap.
AGCO's Price/Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 97.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of AGCO to the average of the S&P500 Index (26.18), we can say AGCO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.92, the valuation of AGCO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 95.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.51. AGCO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.59
Fwd PE 7.92

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AGCO is valued cheaper than 96.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 90.84% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.32
EV/EBITDA 4.61

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AGCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.22
PEG (5Y)0.2
EPS Next 2Y4.38%
EPS Next 3Y1.15%

6

5. Dividend

5.1 Amount

AGCO has a Yearly Dividend Yield of 1.05%.
AGCO's Dividend Yield is a higher than the industry average which is at 1.69.
With a Dividend Yield of 1.05, AGCO pays less dividend than the S&P500 average, which is at 2.48.
Industry RankSector Rank
Dividend Yield 1.05%

5.2 History

On average, the dividend of AGCO grows each year by 57.51%, which is quite nice.
AGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
AGCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)57.51%
Div Incr Years10
Div Non Decr Years10

5.3 Sustainability

39.29% of the earnings are spent on dividend by AGCO. This is a low number and sustainable payout ratio.
AGCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.29%
EPS Next 2Y4.38%
EPS Next 3Y1.15%

AGCO CORP

NYSE:AGCO (2/20/2024, 9:22:08 AM)

107.09

-2.23 (-2.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.02B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.05%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 6.59
Fwd PE 7.92
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.22
PEG (5Y)0.2
Profitability
Industry RankSector Rank
ROA 10.17%
ROE 26.51%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.29%
PM (TTM) 7.96%
GM 25.74%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.62
Quick Ratio 0.72
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)47.37%
EPS 3Y40.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.86%
Revenue growth 3Y11.85%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y