ADECOAGRO SA (AGRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGRO - LU0584671464 - Common Stock
7.84 USD
-0.48 (-5.77%)
7.77 USD
-0.07 (-0.89%)
We assign a fundamental rating of 3 out of 10 to AGRO. AGRO was compared to 86 industry peers in the Food Products industry. While AGRO seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
Each year in the past 5 years AGRO has been profitable.
AGRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.64%, AGRO perfoms like the industry average, outperforming 45.35% of the companies in the same industry.
AGRO has a Return On Equity (1.71%) which is in line with its industry peers.
AGRO has a worse Return On Invested Capital (0.13%) than 62.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGRO is significantly below the industry average of 28.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.71% | ||
| ROIC | 0.13% |
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
With a Profit Margin value of 1.69%, AGRO perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
AGRO's Profit Margin has declined in the last couple of years.
The Operating Margin of AGRO (0.41%) is comparable to the rest of the industry.
AGRO's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.72%, AGRO perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
In the last couple of years the Gross Margin of AGRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.41% | ||
| PM (TTM) | 1.69% | ||
| GM | 17.72% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AGRO is destroying value.
Compared to 1 year ago, AGRO has less shares outstanding
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 1.16, we must say that AGRO is in the distress zone and has some risk of bankruptcy.
AGRO has a Altman-Z score of 1.16. This is in the lower half of the industry: AGRO underperforms 68.60% of its industry peers.
AGRO has a debt to FCF ratio of 30.19. This is a negative value and a sign of low solvency as AGRO would need 30.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 30.19, AGRO is in line with its industry, outperforming 51.16% of the companies in the same industry.
AGRO has a Debt/Equity ratio of 1.00. This is a high value indicating a heavy dependency on external financing.
AGRO has a worse Debt to Equity ratio (1.00) than 73.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 30.19 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.03
WACC3.9%
2.3 Liquidity
A Current Ratio of 2.80 indicates that AGRO has no problem at all paying its short term obligations.
AGRO has a Current ratio of 2.80. This is amongst the best in the industry. AGRO outperforms 82.56% of its industry peers.
AGRO has a Quick Ratio of 1.56. 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 better Quick ratio (1.56) than 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for AGRO have decreased strongly by -84.64% in the last year.
AGRO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.45% yearly.
AGRO shows a decrease in Revenue. In the last year, the revenue decreased by -0.49%.
The Revenue has been growing by 10.89% on average over the past years. This is quite good.
EPS 1Y (TTM)-84.64%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-7.14%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-35.48%
3.2 Future
The Earnings Per Share is expected to decrease by -12.58% on average over the next years. This is quite bad
The Revenue is expected to decrease by -2.74% on average over the next years.
EPS Next Y-92.22%
EPS Next 2Y-27.45%
EPS Next 3Y-12.58%
EPS Next 5YN/A
Revenue Next Year-5.12%
Revenue Next 2Y-3.56%
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 17.42, AGRO is valued on the expensive side.
AGRO's Price/Earnings ratio is a bit cheaper when compared to the industry. AGRO is cheaper than 61.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of AGRO to the average of the S&P500 Index (26.59), we can say AGRO is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.37 indicates a correct valuation of AGRO.
75.58% of the companies in the same industry are more expensive than AGRO, based on the Price/Forward Earnings ratio.
AGRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 13.37 |
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 82.56% of the companies listed in the same industry.
AGRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGRO is cheaper than 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.76 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
AGRO's earnings are expected to decrease with -12.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.45%
EPS Next 3Y-12.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, AGRO is a good candidate for dividend investing.
AGRO's Dividend Yield is a higher than the industry average which is at 5.10.
AGRO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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
149.55% of the earnings are spent on dividend by AGRO. This is not a sustainable payout ratio.
DP149.55%
EPS Next 2Y-27.45%
EPS Next 3Y-12.58%
7.84
-0.48 (-5.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners19.11%
Inst Owner Change-29.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap784.71M
Revenue(TTM)1.38B
Net Income(TTM)23.40M
Analysts48
Price Target10.81 (37.88%)
Short Float %4.67%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend0.34
Dividend Growth(5Y)N/A
DP149.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)86.02%
Min EPS beat(2)-152.79%
Max EPS beat(2)324.84%
EPS beat(4)1
Avg EPS beat(4)32.12%
Min EPS beat(4)-152.79%
Max EPS beat(4)324.84%
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)-18.18%
Min Revenue beat(2)-27.11%
Max Revenue beat(2)-9.25%
Revenue beat(4)0
Avg Revenue beat(4)-10.05%
Min Revenue beat(4)-27.11%
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)-1.85%
PT rev (3m)-6.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-106.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-86.92%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)20.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 13.37 | ||
| P/S | 0.57 | ||
| P/FCF | 14.76 | ||
| P/OCF | 2.6 | ||
| P/B | 0.57 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)0.45
EY5.74%
EPS(NY)0.59
Fwd EY7.48%
FCF(TTM)0.53
FCFY6.78%
OCF(TTM)3.02
OCFY38.51%
SpS13.83
BVpS13.71
TBVpS13.35
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.64% | ||
| ROE | 1.71% | ||
| ROCE | 0.18% | ||
| ROIC | 0.13% | ||
| ROICexc | 0.15% | ||
| ROICexgc | 0.15% | ||
| OM | 0.41% | ||
| PM (TTM) | 1.69% | ||
| GM | 17.72% | ||
| FCFM | 3.84% |
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%
ROICexgc growth 3Y-15.11%
ROICexgc 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-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 30.19 | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 90.92% | ||
| Cap/Sales | 17.98% | ||
| Interest Coverage | 0.11 | ||
| Cash Conversion | 108.11% | ||
| Profit Quality | 227.19% | ||
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.16 |
F-Score5
WACC3.9%
ROIC/WACC0.03
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)-84.64%
EPS 3Y-7.45%
EPS 5YN/A
EPS Q2Q%-7.14%
EPS Next Y-92.22%
EPS Next 2Y-27.45%
EPS Next 3Y-12.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y10.27%
Revenue growth 5Y10.89%
Sales Q2Q%-35.48%
Revenue Next Year-5.12%
Revenue Next 2Y-3.56%
Revenue Next 3Y-2.74%
Revenue Next 5YN/A
EBIT growth 1Y-92.34%
EBIT growth 3Y-4.1%
EBIT growth 5Y3.51%
EBIT Next Year32.03%
EBIT Next 3Y18.15%
EBIT Next 5YN/A
FCF growth 1Y-79.36%
FCF growth 3Y-21.76%
FCF growth 5Y2.99%
OCF growth 1Y-38.46%
OCF growth 3Y-1.99%
OCF growth 5Y0.38%
ADECOAGRO SA / AGRO FAQ
What is the fundamental rating for AGRO stock?
ChartMill assigns a fundamental rating of 3 / 10 to AGRO.
What is the valuation status for AGRO stock?
ChartMill assigns a valuation rating of 4 / 10 to ADECOAGRO SA (AGRO). This can be considered as Fairly Valued.
Can you provide the profitability details for ADECOAGRO SA?
ADECOAGRO SA (AGRO) has a profitability rating of 3 / 10.
What is the valuation of ADECOAGRO SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADECOAGRO SA (AGRO) is 17.42 and the Price/Book (PB) ratio is 0.57.
Can you provide the dividend sustainability for AGRO stock?
The dividend rating of ADECOAGRO SA (AGRO) is 4 / 10 and the dividend payout ratio is 149.55%.