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ADECOAGRO SA (AGRO)
LU0584671464 - Common Stock
Taking everything into account, AGRO scores 5 out of 10 in our fundamental rating. AGRO was compared to 92 industry peers in the Food Products industry. While AGRO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AGRO is valued quite cheap, but it does not seem to be growing. With these ratings, AGRO could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
AGRO had positive earnings in the past year.
In the past year AGRO had a positive cash flow from operations.
Of the past 5 years AGRO 4 years were profitable.
In the past 5 years AGRO always reported a positive cash flow from operatings.
1.2 Ratios
AGRO has a Return On Assets of 7.15%. This is in the better half of the industry: AGRO outperforms 75.82% of its industry peers.
AGRO has a better Return On Equity (18.42%) than 86.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.62%, AGRO is in line with its industry, outperforming 53.85% of the companies in the same industry.
AGRO had an Average Return On Invested Capital over the past 3 years of 2.32%. This is significantly below the industry average of 7.59%.
The 3 year average ROIC (2.32%) for AGRO is below the current ROIC(3.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 18.42% | ||
| ROIC | 3.62% |
ROA(3y)5.23%
ROA(5y)3.13%
ROE(3y)13.64%
ROE(5y)8.18%
ROIC(3y)2.32%
ROIC(5y)2.27%
1.3 Margins
AGRO has a better Profit Margin (17.40%) than 93.41% of its industry peers.
AGRO's Profit Margin has improved in the last couple of years.
AGRO's Operating Margin of 9.62% is fine compared to the rest of the industry. AGRO outperforms 78.02% of its industry peers.
In the last couple of years the Operating Margin of AGRO has grown nicely.
With a decent Gross Margin value of 25.18%, AGRO is doing good in the industry, outperforming 63.74% of the companies in the same industry.
In the last couple of years the Gross Margin of AGRO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.62% | ||
| PM (TTM) | 17.4% | ||
| GM | 25.18% |
OM growth 3Y4.31%
OM growth 5Y16.11%
PM growth 3Y610.55%
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5Y1.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGRO is destroying value.
AGRO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AGRO has less shares outstanding
The debt/assets ratio for AGRO has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that AGRO is in the distress zone and has some risk of bankruptcy.
AGRO has a Altman-Z score of 1.29. This is in the lower half of the industry: AGRO underperforms 64.84% of its industry peers.
The Debt to FCF ratio of AGRO is 6.70, which is on the high side as it means it would take AGRO, 6.70 years of fcf income to pay off all of its debts.
AGRO's Debt to FCF ratio of 6.70 is fine compared to the rest of the industry. AGRO outperforms 63.74% of its industry peers.
AGRO has a Debt/Equity ratio of 0.83. This is a neutral value indicating AGRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, AGRO is doing worse than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.69
WACC5.24%
2.3 Liquidity
A Current Ratio of 2.14 indicates that AGRO has no problem at all paying its short term obligations.
AGRO's Current ratio of 2.14 is fine compared to the rest of the industry. AGRO outperforms 69.23% of its industry peers.
A Quick Ratio of 1.62 indicates that AGRO should not have too much problems paying its short term obligations.
AGRO has a better Quick ratio (1.62) than 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 115.14% over the past year.
The Revenue has decreased by -1.87% in the past year.
AGRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.42% yearly.
EPS 1Y (TTM)115.14%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-193.75%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y16.4%
Revenue growth 5Y10.42%
Revenue growth Q2Q-28.66%
3.2 Future
Based on estimates for the next years, AGRO will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.44% on average per year.
AGRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.73% yearly.
EPS Next Y9.17%
EPS Next 2Y-14.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.55%
Revenue Next 2Y1.06%
Revenue Next 3Y-2.73%
Revenue Next 5YN/A
3.3 Evolution
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
AGRO is valuated reasonably with a Price/Earnings ratio of 8.68.
Based on the Price/Earnings ratio, AGRO is valued cheaply inside the industry as 96.70% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.28. AGRO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.95 indicates a rather cheap valuation of AGRO.
Based on the Price/Forward Earnings ratio, AGRO is valued cheaper than 96.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. AGRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGRO is valued cheaply inside the industry as 91.21% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AGRO is valued cheaper than 90.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.15 | ||
| EV/EBITDA | 5.22 |
4.3 Compensation for Growth
AGRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AGRO may justify a higher PE ratio.
A cheap valuation may be justified as AGRO's earnings are expected to decrease with -14.44% in the coming years.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y-14.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, AGRO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, AGRO pays a bit more dividend than its industry peers.
AGRO's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
AGRO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AGRO pays out 15.46% of its income as dividend. This is a sustainable payout ratio.
DP15.46%
EPS Next 2Y-14.44%
EPS Next 3YN/A
ADECOAGRO SA
NYSE:AGRO (5/3/2024, 7:04:00 PM)
After market: 11.06 -0.05 (-0.45%)11.11
+0.36 (+3.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 7.95 | ||
| 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)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 18.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.62% | ||
| PM (TTM) | 17.4% | ||
| GM | 25.18% | ||
| 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.62 | ||
| 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)115.14%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y9.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y16.4%
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