AGCO : NYSE : Industrial Goods
$61.73 | %
Today's Range: 60.73 - 61.73
Avg. Daily Volume: 923900.0
02/24/17 - 4:02 PM ET

Financial Analysis


AGCO CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AGCO CORP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.19% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)2094.01959.0
EBITDA ($mil)170.1158.9
EBIT ($mil)97.893.0
Net Income ($mil)62.062.1


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)429.7426.7
Total Assets ($mil)7168.46501.3
Total Debt ($mil)1695.41235.0
Equity ($mil)2776.12838.3


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin22.7723.11
EBITDA Margin8.128.11
Operating Margin4.674.75
Sales Turnover1.031.15
Return on Assets2.234.09
Return on Equity5.769.38
Debt Q4 FY16 Q4 FY15
Current Ratio1.481.33
Debt/Capital0.380.3
Interest Expense17.613.3
Interest Coverage5.566.99


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)80.2683.82
Div / share0.130.12
EPS0.770.73
Book value / share34.5933.86
Institutional Own % n/a n/a
Avg Daily Volume915971.0809410.0

Valuation


BUY. AGCO CORP's P/E ratio indicates a premium compared to an average of 27.44 for the Machinery industry and a premium compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 1.77 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 4.78. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AGCO 31.10 Peers 27.44   AGCO 13.31 Peers 15.14

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AGCO is trading at a premium 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 19.67 Peers 23.29   AGCO 1.13 Peers 1.81

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 1.77 Peers 4.78   AGCO -35.63 Peers -17.69

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 0.66 Peers 1.93   AGCO -0.77 Peers -2.19

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AGCO has a sales growth rate that significantly exceeds its peers.

 

 

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