AGCO CORP (AGCO)
US0010841023 - Common Stock
AGCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. AGCO has an excellent profitability rating, but 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 would make AGCO suitable for value investing!
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 each of the past 5 years.
In the past 5 years AGCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.22%, AGCO is in the better half of the industry, outperforming 71.32% of the companies in the same industry.
The Return On Equity of AGCO (23.28%) is better than 83.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.46%, AGCO is in the better half of the industry, outperforming 79.84% 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 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.22% | ||
| ROE | 23.28% | ||
| ROIC | 13.47% |
ROA(3y)9.61%
ROA(5y)7.09%
ROE(3y)24.78%
ROE(5y)18.61%
ROIC(3y)16.46%
ROIC(5y)13.46%
1.3 Margins
The Profit Margin of AGCO (7.90%) is better than 61.24% of its industry peers.
In the last couple of years the Profit Margin of AGCO has grown nicely.
AGCO has a Operating Margin (11.44%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AGCO has grown nicely.
Looking at the Gross Margin, with a value of 26.36%, AGCO is in line with its industry, outperforming 41.09% of the companies in the same industry.
AGCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.44% | ||
| PM (TTM) | 7.9% | ||
| GM | 26.36% |
OM growth 3Y19.41%
OM growth 5Y17.32%
PM growth 3Y20.32%
PM growth 5Y21.59%
GM growth 3Y5.23%
GM growth 5Y4.18%
2. Health
2.1 Basic Checks
AGCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for AGCO has been reduced compared to 1 year ago.
Compared to 5 years ago, AGCO has less shares outstanding
Compared to 1 year ago, AGCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that AGCO is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.00, AGCO perfoms like the industry average, outperforming 49.61% of the companies in the same industry.
AGCO has a debt to FCF ratio of 4.64. This is a neutral value as AGCO would need 4.64 years to pay back of all of its debts.
AGCO has a Debt to FCF ratio (4.64) which is comparable to the rest of the industry.
AGCO has a Debt/Equity ratio of 0.73. This is a neutral value indicating AGCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, AGCO is doing worse than 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 3 |
ROIC/WACC1.62
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.99 indicates that AGCO should not have too much problems paying its short term obligations.
AGCO has a Current ratio (1.99) which is comparable to the rest of the industry.
AGCO has a Quick Ratio of 1.09. This is a normal value and indicates that AGCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, AGCO is doing worse than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
AGCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.13%.
AGCO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.93% yearly.
The Revenue has been growing slightly by 5.33% in the past year.
Measured over the past years, AGCO shows a quite strong growth in Revenue. The Revenue has been growing by 9.04% on average per year.
EPS 1Y (TTM)6.13%
EPS 3Y40.56%
EPS 5Y31.93%
EPS Q2Q%-33.9%
Revenue 1Y (TTM)5.33%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Sales Q2Q%-12.14%
3.2 Future
Based on estimates for the next years, AGCO will show a decrease in Earnings Per Share. The EPS will decrease by -2.13% on average per year.
AGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.32% yearly.
EPS Next Y-21.8%
EPS Next 2Y-11.16%
EPS Next 3Y-5.35%
EPS Next 5Y-2.13%
Revenue Next Year-8.43%
Revenue Next 2Y-4.97%
Revenue Next 3Y-2.03%
Revenue Next 5Y0.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.21, the valuation of AGCO can be described as very cheap.
94.57% of the companies in the same industry are more expensive than AGCO, based on the Price/Earnings ratio.
AGCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 8.43 indicates a reasonable valuation of AGCO.
AGCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AGCO is cheaper than 93.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. AGCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGCO indicates a rather cheap valuation: AGCO is cheaper than 97.67% of the companies listed 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 95.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
The decent profitability rating of AGCO may justify a higher PE ratio.
A cheap valuation may be justified as AGCO's earnings are expected to decrease with -5.35% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-11.16%
EPS Next 3Y-5.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, AGCO has a reasonable but not impressive dividend return.
AGCO's Dividend Yield is a higher than the industry average which is at 1.67.
With a Dividend Yield of 1.13, AGCO pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of AGCO is nicely growing with an annual growth rate of 59.11%!
AGCO has paid a dividend for at least 10 years, which is a reliable track record.
AGCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)59.11%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
41.65% of the earnings are spent on dividend by AGCO. This is a bit on the high side, but may be sustainable.
DP41.65%
EPS Next 2Y-11.16%
EPS Next 3Y-5.35%
AGCO CORP
NYSE:AGCO (7/26/2024, 7:15:24 PM)
After market: 103.52 0 (0%)103.52
+1.68 (+1.65%)
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 Cap7.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.21 | ||
| Fwd PE | 8.43 | ||
| 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)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.22% | ||
| ROE | 23.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.44% | ||
| PM (TTM) | 7.9% | ||
| GM | 26.36% | ||
| 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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.09 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)6.13%
EPS 3Y40.56%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.33%
Revenue growth 3Y16.35%
Revenue growth 5Y
Sales 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