AGCO : NYSE : Industrial Goods
$72.62 | %
Today's Range: 72.56 - 73.45
Avg. Daily Volume: 533600.0
09/22/17 - 4:02 PM ET

Financial Analysis


AGCO CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. AGCO CORP has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)2165.21995.6
EBITDA ($mil)217.2188.5
EBIT ($mil)148.8120.7
Net Income ($mil)91.550.3


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)317.8324.7
Total Assets ($mil)7692.57015.9
Total Debt ($mil)1862.51472.4
Equity ($mil)2907.52923.7


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin24.4824.22
EBITDA Margin10.039.44
Operating Margin6.876.05
Sales Turnover0.991.03
Return on Assets2.382.66
Return on Equity6.36.4
Debt Q2 FY17 Q2 FY16
Current Ratio1.521.54
Debt/Capital0.390.33
Interest Expense11.311.9
Interest Coverage13.1710.14


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)79.581.12
Div / share0.140.13
EPS1.140.61
Book value / share36.5736.04
Institutional Own % n/a n/a
Avg Daily Volume544566.0595825.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 125.40 for the Machinery industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 1.91 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 6.16. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AGCO CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AGCO 30.56 Peers 125.40   AGCO 15.11 Peers 19.02

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AGCO is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AGCO is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AGCO 18.58 Peers 22.16   AGCO 0.55 Peers 1.21

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AGCO is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AGCO trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AGCO 1.91 Peers 6.16   AGCO 3.63 Peers 16.67

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AGCO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AGCO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AGCO 0.72 Peers 2.07   AGCO 5.49 Peers 6.91

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AGCO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AGCO trails its peers on the basis of sales growth

 

 

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