AGCO Corporation
AGCO Corporation Fundamental Analysis
AGCO Corporation (AGCO) shows moderate financial fundamentals with a PE ratio of 14.04, profit margin of 7.21%, and ROE of 17.36%. The company generates $10.2B in annual revenue with weak year-over-year growth of -13.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AGCO's fundamental strength across five key dimensions:
Efficiency Score
WeakAGCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAGCO trades at attractive valuation levels.
Growth Score
WeakAGCO faces weak or negative growth trends.
Financial Health Score
ExcellentAGCO maintains a strong and stable balance sheet.
Profitability Score
ModerateAGCO maintains healthy but balanced margins.
Key Financial Metrics
Is AGCO Expensive or Cheap?
P/E Ratio
AGCO trades at 14.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGCO's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values AGCO Corporation at 2.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.52 times EBITDA. This is generally considered low.
How Well Does AGCO Make Money?
Net Profit Margin
For every $100 in sales, AGCO Corporation keeps $7.21 as profit after all expenses.
Operating Margin
Core operations generate 6.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.36 in profit for every $100 of shareholder equity.
ROA
AGCO Corporation generates $6.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AGCO Corporation generates limited operating cash flow of $999.13M, signaling weaker underlying cash strength.
Free Cash Flow
AGCO Corporation produces free cash flow of $748.46M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.03 in free cash annually.
FCF Yield
AGCO converts 7.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AGCO Stacks Against Its Sector Peers
| Metric | AGCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.04 | 26.76 | Better (Cheaper) |
| ROE | 17.36% | 1300.00% | Weak |
| Net Margin | 7.21% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 10.68 | Neutral |
| ROA | 6.09% | -1545134.00% (disorted) | Weak |
AGCO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AGCO Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.08%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
71.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
11.11%
Industry Style: Cyclical, Value, Infrastructure
High Growth