ADECOAGRO SA (AGRO) Stock Fundamental Analysis
NYSE:AGRO - New York Stock Exchange, Inc. - LU0584671464 - Common Stock - Currency: USD
Taking everything into account, AGRO scores 4 out of 10 in our fundamental rating. AGRO was compared to 91 industry peers in the Food Products industry. AGRO has an average financial health and profitability rating. AGRO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AGRO was profitable.
In the past year AGRO had a positive cash flow from operations.
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
The Return On Assets of AGRO (1.88%) is comparable to the rest of the industry.
AGRO's Return On Equity of 4.44% is in line compared to the rest of the industry. AGRO outperforms 45.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.22%, AGRO is in line with its industry, outperforming 42.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AGRO is significantly below the industry average of 28.20%.
| 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
The Profit Margin of AGRO (4.03%) is better than 64.84% of its industry peers.
In the last couple of years the Profit Margin of AGRO has declined.
AGRO's Operating Margin of 2.93% is in line compared to the rest of the industry. AGRO outperforms 47.25% of its industry peers.
AGRO's Operating Margin has declined in the last couple of years.
AGRO has a Gross Margin of 18.85%. This is comparable to the rest of the industry: AGRO outperforms 48.35% of its industry peers.
In the last couple of years the Gross Margin of AGRO has declined.
| 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.
AGRO has less shares outstanding than it did 5 years ago.
AGRO has a better debt/assets ratio than last year.
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.
The Altman-Z score of AGRO (1.29) is worse than 63.74% of its industry peers.
The Debt to FCF ratio of AGRO is 13.48, which is on the high side as it means it would take AGRO, 13.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.48, AGRO is in line with its industry, outperforming 56.04% of the companies in the same industry.
AGRO has a Debt/Equity ratio of 0.68. This is a neutral value indicating AGRO is somewhat dependend on debt financing.
AGRO has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 13.48 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.3
WACC4.06%
2.3 Liquidity
A Current Ratio of 1.98 indicates that AGRO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.98, AGRO is doing good in the industry, outperforming 63.74% of the companies in the same industry.
AGRO has a Quick Ratio of 1.04. This is a normal value and indicates that AGRO is financially healthy and should not expect problems in meeting its short term obligations.
AGRO has a Quick ratio of 1.04. This is in the better half of the industry: AGRO outperforms 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for AGRO have decreased strongly by -73.54% in the last year.
The Earnings Per Share has been decreasing by -7.45% on average over the past years.
The Revenue has grown by 19.67% in the past year. This is quite good.
AGRO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.89% yearly.
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.
The Revenue is expected to decrease by -2.19% on average over the next years.
EPS Next Y-41.88%
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
EPS Next 5YN/A
Revenue Next Year-5.62%
Revenue Next 2Y-2.24%
Revenue Next 3Y-2.19%
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.
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
The Price/Earnings ratio is 14.29, which indicates a correct valuation of AGRO.
AGRO's Price/Earnings ratio is a bit cheaper when compared to the industry. AGRO is cheaper than 69.23% of the companies in the same industry.
AGRO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
AGRO is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
Based on the Price/Forward Earnings ratio, AGRO is valued cheaper than 82.42% of the companies in the same industry.
AGRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
AGRO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AGRO is cheaper than 84.62% of the companies in the same industry.
85.71% 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 | 9.37 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
A cheap valuation may be justified as AGRO's earnings are expected to decrease with -8.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.59%
EPS Next 3Y-8.03%
5. Dividend
5.1 Amount
AGRO has a Yearly Dividend Yield of 3.72%.
Compared to an average industry Dividend Yield of 4.74, AGRO pays a bit more dividend than its industry peers.
AGRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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
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-16.59%
EPS Next 3Y-8.03%
8.86
+0.05 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners47.75%
Inst Owner Change-13.46%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap885.91M
Analysts48
Price Target11.61 (31.04%)
Short Float %2.89%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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)-5.79%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-2.14%
Revenue NY rev (3m)-1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 11.43 | ||
| P/S | 0.57 | ||
| P/FCF | 9.37 | ||
| P/OCF | 2.55 | ||
| P/B | 0.62 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 5.57 |
EPS(TTM)0.62
EY7%
EPS(NY)0.78
Fwd EY8.75%
FCF(TTM)0.95
FCFY10.68%
OCF(TTM)3.48
OCFY39.28%
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 | 1.29 |
F-Score6
WACC4.06%
ROIC/WACC0.3
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-41.88%
EPS Next 2Y-16.59%
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-5.62%
Revenue Next 2Y-2.24%
Revenue Next 3Y-2.19%
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%