AGCO : NYSE : Industrial Goods
$48.16 | %
Today's Range: 47.65 - 48.51
Avg. Daily Volume: 846,500
07/29/16 - 4:02 PM ET

Financial Analysis


AGCO CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. AGCO CORP has weak liquidity. Currently, the Quick Ratio is 0.53 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 decreased by 6.02% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1559.31702.6
EBITDA ($mil)87.8122.0
EBIT ($mil)21.357.4
Net Income ($mil)7.830.1


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)247.9338.9
Total Assets ($mil)6976.27264.5
Total Debt ($mil)1578.41507.6
Equity ($mil)2874.23058.4


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin23.7423.61
EBITDA Margin5.637.16
Operating Margin1.373.37
Sales Turnover1.051.25
Return on Assets3.494.69
Return on Equity8.4911.14
Debt Q1 FY16 Q1 FY15
Current Ratio1.421.76
Debt/Capital0.350.33
Interest Expense10.510.2
Interest Coverage2.035.63


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)82.4688.03
Div / share0.130.12
EPS0.090.34
Book value / share34.8634.74
Institutional Own % n/a n/a
Avg Daily Volume917888.01089998.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 24.52 for the Machinery industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.41 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.79. 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 17.55 Peers 24.52   AGCO 9.34 Peers 16.07

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 significant 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 18.61 Peers 21.65   AGCO NM Peers 3.66

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AGCO 1.41 Peers 3.79   AGCO -23.02 Peers -27.70

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 0.56 Peers 1.63   AGCO -19.46 Peers -5.12

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 significantly trails its peers on the basis of sales growth

 

 

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