AGCO Corporation
Find Ratings ReportsAGCO CORP's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. AGCO CORP has weak liquidity. Currently, the Quick Ratio is 0.51 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 19.94% 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 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 3800.7 | 3898.9 |
EBITDA ($mil) | 481.6 | 534.6 |
EBIT ($mil) | 405.3 | 467.5 |
Net Income ($mil) | 339.0 | 322.2 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 595.5 | 789.5 |
Total Assets ($mil) | 11421.2 | 10103.7 |
Total Debt ($mil) | 1577.9 | 1634.5 |
Equity ($mil) | 4656.7 | 3882.4 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 27.49 | 25.47 |
EBITDA Margin | 12.67 | 13.71 |
Operating Margin | 10.66 | 11.99 |
Sales Turnover | 1.26 | 1.25 |
Return on Assets | 10.25 | 8.8 |
Return on Equity | 25.16 | 22.91 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.46 | 1.4 |
Debt/Capital | 0.25 | 0.3 |
Interest Expense | 0.0 | 4.4 |
Interest Coverage | 0.0 | 106.25 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 74.52 | 74.6 |
Div / share | 0.29 | 0.24 |
EPS | 4.53 | 4.29 |
Book value / share | 62.49 | 52.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 719445.0 | 671827.0 |
BUY. AGCO CORP's P/E ratio indicates a significant discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.86 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, AGCO CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AGCO 7.42 | Peers 34.89 | AGCO 7.84 | Peers 35.56 | |||||||||||||||||||||
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AGCO 9.28 | Peers 25.65 | AGCO NM | Peers 5.15 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AGCO is trading at a significant discount to 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. |
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Price/Book |
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Earnings Growth |
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AGCO 1.86 | Peers 15.81 | AGCO 31.67 | Peers 20.44 | |||||||||||||||||||||
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AGCO is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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AGCO 0.60 | Peers 8.34 | AGCO 13.91 | Peers 14.92 | |||||||||||||||||||||
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 subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. AGCO is keeping pace with its peers on the basis of sales growth. |
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