Adecoagro S.A.
Adecoagro S.A. Fundamental Analysis
Adecoagro S.A. (AGRO) shows weak financial fundamentals with a PE ratio of 196.19, profit margin of 1.69%, and ROE of 1.70%. The company generates $1.4B in annual revenue with strong year-over-year growth of 16.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AGRO's fundamental strength across five key dimensions:
Efficiency Score
WeakAGRO struggles to generate sufficient returns from assets.
Valuation Score
ModerateAGRO shows balanced valuation metrics.
Growth Score
ModerateAGRO shows steady but slowing expansion.
Financial Health Score
ModerateAGRO shows balanced financial health with some risks.
Profitability Score
ModerateAGRO maintains healthy but balanced margins.
Key Financial Metrics
Is AGRO Expensive or Cheap?
P/E Ratio
AGRO trades at 196.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AGRO's PEG of -5.72 indicates potential undervaluation.
Price to Book
The market values Adecoagro S.A. at 3.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.79 times EBITDA. This is generally considered low.
How Well Does AGRO Make Money?
Net Profit Margin
For every $100 in sales, Adecoagro S.A. keeps $1.69 as profit after all expenses.
Operating Margin
Core operations generate 8.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.70 in profit for every $100 of shareholder equity.
ROA
Adecoagro S.A. generates $0.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adecoagro S.A. produces operating cash flow of $284.31M, showing steady but balanced cash generation.
Free Cash Flow
Adecoagro S.A. produces free cash flow of $51.40M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
AGRO converts 1.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
196.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AGRO Stacks Against Its Sector Peers
| Metric | AGRO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 196.19 | 23.25 | Worse (Expensive) |
| ROE | 1.70% | 1240.00% | Weak |
| Net Margin | 1.69% | -9728.00% (disorted) | Weak |
| Debt/Equity | 1.17 | 0.77 | Weak (High Leverage) |
| Current Ratio | 2.80 | 2.54 | Strong Liquidity |
| ROA | 0.64% | -203388.00% (disorted) | Weak |
AGRO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adecoagro S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
95.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
30754.59%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
16.48%
Industry Style: Defensive, Dividend, Low Volatility
High Growth