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Fundamental analysis: AGCO Corporation (AGCO)

Awarener score: 7.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Modest), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business growth has been almost stagnant. It's been encouraging in relation to peer companies.
  • AGCO Corporation business trend stability is very good. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 5.7

  • AGCO profit margins -on goods and services sold- are usually meagre. They stand slightly better than rival companies.
  • Business profit on sales tends to be good. It's similar to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain rather normal in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain similar to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 7.6

  • AGCO Corporation profit -on goods and services sold- has been growing at a low pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been well ranked against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be a slight improvement compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was somewhat better than rivals.
  • In the previous years, growth trend on total net profit has been excellent, and great when measured against peer companies.
  • Earnings per share have grown at an excellent rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 7.3

  • AGCO had to pay a lot of income taxes in relation to profits made in the past years. It's been worse than most peers.
  • Research and development expenses hardly consume a portion of revenues. It's similar to competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 8.0

  • AGCO Corporation usually gets very good returns on the resources it controls. It proves similar to peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks encouraging in relation to competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 7.6

  • AGCO usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands similar to rival firms.
  • The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is below average when measured against industry peers.
  • In the past twelve months it paid excellent dividends, considering the current stock price. It came top-notch against competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved in good shape compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks slightly better than comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands impressive in relation to rivals.
  • The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks more than average in relation to competitors.

Balance Sheet score: 5.2

  • AGCO Corporation intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat better than rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on a month credit. It still ranks more than average in relation to peers.
  • Normally has approximately five months of sales worth in inventory. It comes up as lacking compared to competitors.
  • On average, it takes higher than six months from the purchase to charging customers. It happens to be slightly better than peers.
  • On average pays suppliers two months after the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's close to average when compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
  • Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 7.3

  • AGCO Corporation looks cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks top tier when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 6.9


AGCO logos

Company at a glance: AGCO Corporation (AGCO)

Sector, industry: Industrials, Farm & Heavy Construction Machinery

Market Cap: 7.54 billions

Revenues TTM: 11.45 billions

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

Awarener score: 7.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Modest), and the company's inclination to return cash to the stockholders (Excellent).