AGCO CORP (AGJ.DE) Stock Fundamental Analysis
FRA:AGJ - Deutsche Boerse Ag - US0010841023 - Common Stock - Currency: EUR
Taking everything into account, AGJ scores 4 out of 10 in our fundamental rating. AGJ was compared to 103 industry peers in the Machinery industry. AGJ has only an average score on both its financial health and profitability. AGJ has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AGJ had positive earnings in the past year.
AGJ had a positive operating cash flow in the past year.
In the past 5 years AGJ has always been profitable.
Each year in the past 5 years AGJ had a positive operating cash flow.
1.2 Ratios
AGJ has a Return On Assets (1.26%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.10%, AGJ is in line with its industry, outperforming 44.23% of the companies in the same industry.
AGJ has a Return On Invested Capital of 4.99%. This is comparable to the rest of the industry: AGJ outperforms 46.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGJ is significantly above the industry average of 8.83%.
The last Return On Invested Capital (4.99%) for AGJ is well below the 3 year average (16.46%), which needs to be investigated, but indicates that AGJ had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.1% | ||
| ROIC | 4.99% |
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
Looking at the Profit Margin, with a value of 1.35%, AGJ is in line with its industry, outperforming 41.35% of the companies in the same industry.
In the last couple of years the Profit Margin of AGJ has grown nicely.
AGJ has a Operating Margin (4.73%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AGJ has grown nicely.
Looking at the Gross Margin, with a value of 25.39%, AGJ is doing worse than 70.19% of the companies in the same industry.
AGJ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.73% | ||
| PM (TTM) | 1.35% | ||
| GM | 25.39% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AGJ is creating value.
Compared to 1 year ago, AGJ has less shares outstanding
Compared to 5 years ago, AGJ has less shares outstanding
The debt/assets ratio for AGJ has been reduced compared to a year ago.
2.2 Solvency
AGJ has an Altman-Z score of 2.34. This is not the best score and indicates that AGJ is in the grey zone with still only limited risk for bankruptcy at the moment.
AGJ has a better Altman-Z score (2.34) than 61.54% of its industry peers.
AGJ has a debt to FCF ratio of 11.40. This is a negative value and a sign of low solvency as AGJ would need 11.40 years to pay back of all of its debts.
AGJ has a Debt to FCF ratio of 11.40. This is comparable to the rest of the industry: AGJ outperforms 44.23% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that AGJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.88, AGJ is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.59
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.53 indicates that AGJ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, AGJ is in line with its industry, outperforming 50.96% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that AGJ may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, AGJ is doing worse than 70.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
AGJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.67%.
Measured over the past years, AGJ shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.93% on average per year.
Looking at the last year, AGJ shows a very negative growth in Revenue. The Revenue has decreased by -13.34% in the last year.
The Revenue has been growing by 9.04% on average over the past years. This is quite good.
EPS 1Y (TTM)-42.67%
EPS 3Y40.56%
EPS 5Y31.93%
EPS Q2Q%-82.87%
Revenue 1Y (TTM)-13.34%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Sales Q2Q%-24.78%
3.2 Future
AGJ is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.13% yearly.
AGJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.32% yearly.
EPS Next Y-51.22%
EPS Next 2Y-35.29%
EPS Next 3Y-17.85%
EPS Next 5Y-2.13%
Revenue Next Year-17.9%
Revenue Next 2Y-13.9%
Revenue Next 3Y-7.76%
Revenue Next 5Y0.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AGJ is valuated reasonably with a Price/Earnings ratio of 10.10.
Based on the Price/Earnings ratio, AGJ is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.98. AGJ is valued rather cheaply when compared to this.
AGJ is valuated correctly with a Price/Forward Earnings ratio of 14.43.
The rest of the industry has a similar Price/Forward Earnings ratio as AGJ.
AGJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
AGJ's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AGJ is more expensive than 66.35% of the companies in the same industry.
AGJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.89 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
The decent profitability rating of AGJ may justify a higher PE ratio.
A cheap valuation may be justified as AGJ's earnings are expected to decrease with -17.85% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-35.29%
EPS Next 3Y-17.85%
5. Dividend
5.1 Amount
AGJ has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, AGJ has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, AGJ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of AGJ grows each year by 59.11%, which is quite nice.
Dividend Growth(5Y)59.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AGJ pays out 160.74% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of AGJ has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP160.74%
EPS Next 2Y-35.29%
EPS Next 3Y-17.85%
FRA:AGJ (11/18/2024, 7:00:00 PM)
88.98
+2.98 (+3.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.64B
Analysts73.33
Price Target103.58 (16.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend6.12
Dividend Growth(5Y)59.11%
DP160.74%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.41%
Min EPS beat(2)-38.3%
Max EPS beat(2)-14.53%
EPS beat(4)1
Avg EPS beat(4)-14.9%
Min EPS beat(4)-38.3%
Max EPS beat(4)0.95%
EPS beat(8)5
Avg EPS beat(8)1.4%
EPS beat(12)8
Avg EPS beat(12)9.51%
EPS beat(16)12
Avg EPS beat(16)17.53%
Revenue beat(2)0
Avg Revenue beat(2)-10.36%
Min Revenue beat(2)-12.13%
Max Revenue beat(2)-8.6%
Revenue beat(4)0
Avg Revenue beat(4)-8.11%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-4.17%
Revenue beat(8)3
Avg Revenue beat(8)-3.53%
Revenue beat(12)4
Avg Revenue beat(12)-3.09%
Revenue beat(16)7
Avg Revenue beat(16)-1.84%
PT rev (1m)0%
PT rev (3m)3.89%
EPS NQ rev (1m)-46.7%
EPS NQ rev (3m)-46.7%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-10.18%
Revenue NQ rev (1m)-11.84%
Revenue NQ rev (3m)-11.84%
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 14.43 | ||
| P/S | 0.56 | ||
| P/FCF | 19.89 | ||
| P/OCF | 8.85 | ||
| P/B | 1.69 | ||
| P/tB | 5.84 | ||
| EV/EBITDA | 11.33 |
EPS(TTM)8.81
EY9.9%
EPS(NY)6.16
Fwd EY6.93%
FCF(TTM)4.47
FCFY5.03%
OCF(TTM)10.05
OCFY11.29%
SpS159.49
BVpS52.62
TBVpS15.24
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 4.1% | ||
| ROCE | 6.44% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.35% | ||
| ROICexgc | 8.1% | ||
| OM | 4.73% | ||
| PM (TTM) | 1.35% | ||
| GM | 25.39% | ||
| FCFM | 2.8% |
ROA(3y)9.61%
ROA(5y)7.09%
ROE(3y)24.78%
ROE(5y)18.61%
ROIC(3y)16.46%
ROIC(5y)13.46%
ROICexc(3y)18.71%
ROICexc(5y)15.5%
ROICexgc(3y)26.92%
ROICexgc(5y)23.48%
ROCE(3y)21.24%
ROCE(5y)17.42%
ROICexcg growth 3Y8.22%
ROICexcg growth 5Y11.71%
ROICexc growth 3Y18.76%
ROICexc growth 5Y19.05%
OM growth 3Y19.41%
OM growth 5Y17.32%
PM growth 3Y20.32%
PM growth 5Y21.59%
GM growth 3Y5.23%
GM growth 5Y4.18%
F-Score3
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 11.4 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 137.54% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.68% | ||
| Profit Quality | 207.59% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.34 |
F-Score3
WACC8.45%
ROIC/WACC0.59
Cap/Depr(3y)139.87%
Cap/Depr(5y)123.87%
Cap/Sales(3y)3.03%
Cap/Sales(5y)3.01%
Profit Quality(3y)48%
Profit Quality(5y)125.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.67%
EPS 3Y40.56%
EPS 5Y31.93%
EPS Q2Q%-82.87%
EPS Next Y-51.22%
EPS Next 2Y-35.29%
EPS Next 3Y-17.85%
EPS Next 5Y-2.13%
Revenue 1Y (TTM)-13.34%
Revenue growth 3Y16.35%
Revenue growth 5Y9.04%
Sales Q2Q%-24.78%
Revenue Next Year-17.9%
Revenue Next 2Y-13.9%
Revenue Next 3Y-7.76%
Revenue Next 5Y0.32%
EBIT growth 1Y-66.66%
EBIT growth 3Y38.94%
EBIT growth 5Y27.93%
EBIT Next Year-25.98%
EBIT Next 3Y-9.66%
EBIT Next 5Y-1.26%
FCF growth 1Y2059.44%
FCF growth 3Y-2.26%
FCF growth 5Y8.3%
OCF growth 1Y144.87%
OCF growth 3Y7.16%
OCF growth 5Y13.11%