ADECOAGRO SA (AGRO) Stock Fundamental Analysis
NYSE:AGRO - New York Stock Exchange, Inc. - LU0584671464 - Common Stock - Currency: USD
Overall AGRO gets a fundamental rating of 4 out of 10. We evaluated AGRO against 89 industry peers in the Food Products industry. Both the profitability and the financial health of AGRO get a neutral evaluation. Nothing too spectacular is happening here. AGRO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AGRO had positive earnings in the past year.
AGRO had a positive operating cash flow in the past year.
AGRO had positive earnings in each of the past 5 years.
Each year in the past 5 years AGRO had a positive operating cash flow.
1.2 Ratios
AGRO's Return On Assets of 1.88% is in line compared to the rest of the industry. AGRO outperforms 44.94% of its industry peers.
AGRO has a Return On Equity (4.44%) which is comparable to the rest of the industry.
AGRO has a Return On Invested Capital (1.22%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGRO is significantly below the industry average of 7.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 4.44% | ||
| ROIC | 1.22% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.58%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
1.3 Margins
Looking at the Profit Margin, with a value of 4.03%, AGRO is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
AGRO's Profit Margin has declined in the last couple of years.
The Operating Margin of AGRO (2.93%) is comparable to the rest of the industry.
AGRO's Operating Margin has declined in the last couple of years.
AGRO's Gross Margin of 18.85% is in line compared to the rest of the industry. AGRO outperforms 48.31% of its industry peers.
AGRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.93% | ||
| PM (TTM) | 4.03% | ||
| GM | 18.85% |
OM growth 3Y-13.04%
OM growth 5Y-6.66%
PM growth 3Y-19.23%
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-4.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGRO is destroying value.
The number of shares outstanding for AGRO has been reduced compared to 1 year ago.
Compared to 5 years ago, AGRO has less shares outstanding
Compared to 1 year ago, AGRO has an improved debt to assets ratio.
2.2 Solvency
AGRO has an Altman-Z score of 1.30. This is a bad value and indicates that AGRO is not financially healthy and even has some risk of bankruptcy.
AGRO's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. AGRO is outperformed by 65.17% of its industry peers.
AGRO has a debt to FCF ratio of 13.48. This is a negative value and a sign of low solvency as AGRO would need 13.48 years to pay back of all of its debts.
AGRO has a Debt to FCF ratio of 13.48. This is comparable to the rest of the industry: AGRO outperforms 58.43% of its industry peers.
AGRO has a Debt/Equity ratio of 0.68. This is a neutral value indicating AGRO is somewhat dependend on debt financing.
The Debt to Equity ratio of AGRO (0.68) is worse than 61.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.48 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.29
WACC4.17%
2.3 Liquidity
A Current Ratio of 1.98 indicates that AGRO should not have too much problems paying its short term obligations.
AGRO has a Current ratio of 1.98. This is in the better half of the industry: AGRO outperforms 62.92% of its industry peers.
A Quick Ratio of 1.04 indicates that AGRO should not have too much problems paying its short term obligations.
AGRO has a Quick ratio of 1.04. This is in the better half of the industry: AGRO outperforms 61.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.54%.
Measured over the past years, AGRO shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.45% on average per year.
The Revenue has grown by 19.67% in the past year. This is quite good.
The Revenue has been growing by 10.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-73.54%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-159.09%
Revenue 1Y (TTM)19.67%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%24.34%
3.2 Future
Based on estimates for the next years, AGRO will show a decrease in Earnings Per Share. The EPS will decrease by -8.03% on average per year.
AGRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.65% yearly.
EPS Next Y-29.21%
EPS Next 2Y-9.74%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue Next Year-4.56%
Revenue Next 2Y-2.12%
Revenue Next 3Y-2.65%
Revenue Next 5YN/A
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 stable.
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
Based on the Price/Earnings ratio of 14.63, the valuation of AGRO can be described as correct.
AGRO's Price/Earnings ratio is a bit cheaper when compared to the industry. AGRO is cheaper than 66.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AGRO is valued a bit cheaper.
AGRO is valuated reasonably with a Price/Forward Earnings ratio of 9.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGRO indicates a rather cheap valuation: AGRO is cheaper than 88.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, AGRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGRO indicates a rather cheap valuation: AGRO is cheaper than 85.39% of the companies listed in the same industry.
86.52% of the companies in the same industry are more expensive than AGRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 5.66 |
4.3 Compensation for Growth
AGRO's earnings are expected to decrease with -8.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.74%
EPS Next 3Y-8.03%
5. Dividend
5.1 Amount
AGRO has a Yearly Dividend Yield of 3.67%.
AGRO's Dividend Yield is a higher than the industry average which is at 4.63.
Compared to an average S&P500 Dividend Yield of 2.38, AGRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
AGRO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
55.53% of the earnings are spent on dividend by AGRO. This is a bit on the high side, but may be sustainable.
DP55.53%
EPS Next 2Y-9.74%
EPS Next 3Y-8.03%
9.07
-0.09 (-0.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners48.2%
Inst Owner Change0.23%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap906.91M
Analysts51.67
Price Target12.36 (36.27%)
Short Float %1.53%
Short Ratio0.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP55.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.79%
Min EPS beat(2)-41.61%
Max EPS beat(2)-1.96%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)-0.44%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-6.19%
PT rev (3m)-9.29%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-18.81%
EPS NY rev (3m)-23.81%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.58 | ||
| P/FCF | 9.59 | ||
| P/OCF | 2.61 | ||
| P/B | 0.64 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 5.66 |
EPS(TTM)0.62
EY6.84%
EPS(NY)0.91
Fwd EY10.01%
FCF(TTM)0.95
FCFY10.43%
OCF(TTM)3.48
OCFY38.37%
SpS15.65
BVpS14.2
TBVpS13.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 4.44% | ||
| ROCE | 1.64% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.3% | ||
| ROICexgc | 1.32% | ||
| OM | 2.93% | ||
| PM (TTM) | 4.03% | ||
| GM | 18.85% | ||
| FCFM | 6.05% |
ROA(3y)4.53%
ROA(5y)3.73%
ROE(3y)11.58%
ROE(5y)9.54%
ROIC(3y)2.02%
ROIC(5y)2.16%
ROICexc(3y)2.33%
ROICexc(5y)2.54%
ROICexgc(3y)2.36%
ROICexgc(5y)2.57%
ROCE(3y)2.73%
ROCE(5y)2.93%
ROICexcg growth 3Y-15.11%
ROICexcg growth 5Y-3.51%
ROICexc growth 3Y-15.02%
ROICexc growth 5Y-3.43%
OM growth 3Y-13.04%
OM growth 5Y-6.66%
PM growth 3Y-19.23%
PM growth 5YN/A
GM growth 3Y-5.34%
GM growth 5Y-4.39%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.48 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 86.3% | ||
| Cap/Sales | 16.2% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 102.54% | ||
| Profit Quality | 150.07% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.3 |
F-Score6
WACC4.17%
ROIC/WACC0.29
Cap/Depr(3y)88.64%
Cap/Depr(5y)92.09%
Cap/Sales(3y)17.92%
Cap/Sales(5y)18.87%
Profit Quality(3y)94.78%
Profit Quality(5y)4082.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-73.54%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-159.09%
EPS Next Y-29.21%
EPS Next 2Y-9.74%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue 1Y (TTM)19.67%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%24.34%
Revenue Next Year-4.56%
Revenue Next 2Y-2.12%
Revenue Next 3Y-2.65%
Revenue Next 5YN/A
EBIT growth 1Y-63.14%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year75.33%
EBIT Next 3Y19.26%
EBIT Next 5YN/A
FCF growth 1Y-12.09%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y2.34%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%