ADECOAGRO SA (AGRO) Stock Fundamental Analysis
USA - NYSE:AGRO - LU0584671464 - Common Stock
8.16 USD
-0.05 (-0.61%)
8.16 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to AGRO. AGRO was compared to 89 industry peers in the Food Products industry. While AGRO is still in line with the averages on profitability rating, there are concerns on its financial health. AGRO has a valuation in line with the averages, but it does not seem to be growing.
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.
AGRO had positive earnings in each of the past 5 years.
AGRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AGRO has a Return On Assets of 1.10%. This is comparable to the rest of the industry: AGRO outperforms 42.70% of its industry peers.
AGRO has a Return On Equity (2.62%) which is in line with its industry peers.
AGRO has a Return On Invested Capital (0.90%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AGRO is significantly below the industry average of 28.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.62% | ||
| ROIC | 0.9% |
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
AGRO's Profit Margin of 2.33% is in line compared to the rest of the industry. AGRO outperforms 55.06% of its industry peers.
In the last couple of years the Profit Margin of AGRO has declined.
AGRO has a Operating Margin (2.16%) which is in line with its industry peers.
AGRO's Operating Margin has declined in the last couple of years.
AGRO has a Gross Margin (18.66%) which is in line with its industry peers.
AGRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.16% | ||
| PM (TTM) | 2.33% | ||
| GM | 18.66% |
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
AGRO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AGRO has less shares outstanding
The number of shares outstanding for AGRO has been reduced compared to 5 years ago.
Compared to 1 year ago, AGRO has an improved debt to assets ratio.
2.2 Solvency
AGRO has an Altman-Z score of 1.24. This is a bad value and indicates that AGRO is not financially healthy and even has some risk of bankruptcy.
AGRO has a worse Altman-Z score (1.24) than 66.29% of its industry peers.
AGRO has a debt to FCF ratio of 16.91. This is a negative value and a sign of low solvency as AGRO would need 16.91 years to pay back of all of its debts.
AGRO has a Debt to FCF ratio (16.91) which is comparable to the rest of the industry.
AGRO has a Debt/Equity ratio of 0.73. This is a neutral value indicating AGRO is somewhat dependend on debt financing.
AGRO has a Debt to Equity ratio of 0.73. This is comparable to the rest of the industry: AGRO outperforms 43.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 16.91 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.23
WACC3.95%
2.3 Liquidity
A Current Ratio of 1.90 indicates that AGRO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.90, AGRO is doing good in the industry, outperforming 60.67% of the companies in the same industry.
AGRO has a Quick Ratio of 1.90. This is a bad value and indicates that AGRO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.95, AGRO perfoms like the industry average, outperforming 57.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
AGRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.43%.
AGRO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.45% yearly.
Looking at the last year, AGRO shows a quite strong growth in Revenue. The Revenue has grown by 17.51% in the last year.
Measured over the past years, AGRO shows a quite strong growth in Revenue. The Revenue has been growing by 10.89% on average per year.
EPS 1Y (TTM)-82.43%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-289.25%
Revenue 1Y (TTM)17.51%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-6.09%
3.2 Future
Based on estimates for the next years, AGRO will show a decrease in Earnings Per Share. The EPS will decrease by -8.94% on average per year.
AGRO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.74% yearly.
EPS Next Y-40.5%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
EPS Next 5YN/A
Revenue Next Year-9.56%
Revenue Next 2Y-4.9%
Revenue Next 3Y-2.74%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 17.36, AGRO is valued on the expensive side.
AGRO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. AGRO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.60, which indicates a very decent valuation of AGRO.
Based on the Price/Forward Earnings ratio, AGRO is valued cheaper than 84.27% of the companies in the same industry.
AGRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
80.90% of the companies in the same industry are more expensive than AGRO, based on the Enterprise Value to EBITDA ratio.
AGRO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AGRO is cheaper than 82.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.88 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
AGRO's earnings are expected to decrease with -8.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, AGRO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.03, AGRO pays a better dividend. On top of this AGRO pays more dividend than 80.90% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AGRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
AGRO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
97.37% of the earnings are spent on dividend by AGRO. This is not a sustainable payout ratio.
DP97.37%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
8.16
-0.05 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners37.3%
Inst Owner Change-64.89%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap816.57M
Analysts48
Price Target11.28 (38.24%)
Short Float %4.46%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP97.37%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-97.2%
Min EPS beat(2)-152.79%
Max EPS beat(2)-41.61%
EPS beat(4)0
Avg EPS beat(4)-64.14%
Min EPS beat(4)-152.79%
Max EPS beat(4)-1.96%
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)-6.33%
Min Revenue beat(2)-9.25%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-9.25%
Max Revenue beat(4)-0.44%
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)-2.81%
PT rev (3m)-8.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.36%
EPS NY rev (3m)-15.95%
Revenue NQ rev (1m)-7.71%
Revenue NQ rev (3m)-7.71%
Revenue NY rev (1m)-4.17%
Revenue NY rev (3m)-6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.53 | ||
| P/FCF | 10.88 | ||
| P/OCF | 2.52 | ||
| P/B | 0.6 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)0.47
EY5.76%
EPS(NY)0.77
Fwd EY9.44%
FCF(TTM)0.75
FCFY9.19%
OCF(TTM)3.23
OCFY39.63%
SpS15.4
BVpS13.71
TBVpS13.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 2.62% | ||
| ROCE | 1.21% | ||
| ROIC | 0.9% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 0.98% | ||
| OM | 2.16% | ||
| PM (TTM) | 2.33% | ||
| GM | 18.66% | ||
| FCFM | 4.87% |
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 | 0.73 | ||
| Debt/FCF | 16.91 | ||
| Debt/EBITDA | 3.27 | ||
| Cap/Depr | 91.38% | ||
| Cap/Sales | 16.13% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 106.01% | ||
| Profit Quality | 208.74% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.24 |
F-Score6
WACC3.95%
ROIC/WACC0.23
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)-82.43%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-289.25%
EPS Next Y-40.5%
EPS Next 2Y-16.87%
EPS Next 3Y-8.94%
EPS Next 5YN/A
Revenue 1Y (TTM)17.51%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-6.09%
Revenue Next Year-9.56%
Revenue Next 2Y-4.9%
Revenue Next 3Y-2.74%
Revenue Next 5YN/A
EBIT growth 1Y-57.71%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year64.59%
EBIT Next 3Y21.12%
EBIT Next 5YN/A
FCF growth 1Y-40.96%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y-10.49%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%