DB:AG8

Stock Analysis Report

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Executive Summary

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Agilent Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AG8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

AG8

0.6%

DE Life Sciences

-3.6%

DE Market


1 Year Return

31.5%

AG8

58.5%

DE Life Sciences

3.7%

DE Market

Return vs Industry: AG8 underperformed the German Life Sciences industry which returned 58.5% over the past year.

Return vs Market: AG8 exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

AG8IndustryMarket
7 Day-0.6%0.6%-3.6%
30 Day2.7%8.2%-2.0%
90 Day19.4%23.7%13.3%
1 Year32.7%31.5%59.5%58.5%6.0%3.7%
3 Year64.1%59.8%127.7%122.5%1.1%-6.9%
5 Year131.8%120.9%263.7%240.3%7.8%-6.8%

Price Volatility Vs. Market

How volatile is Agilent Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Agilent Technologies undervalued compared to its fair value and its price relative to the market?

43.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AG8 (€80.87) is trading above our estimate of fair value (€58.33)

Significantly Below Fair Value: AG8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AG8 is good value based on its PE Ratio (43.7x) compared to the XE Life Sciences industry average (62.1x).

PE vs Market: AG8 is poor value based on its PE Ratio (43.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: AG8 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AG8 is good value based on its PB Ratio (6.2x) compared to the XE Life Sciences industry average (6.7x).


Next Steps

Future Growth

How is Agilent Technologies forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AG8's forecast earnings growth (23% per year) is above the savings rate (0.2%).

Earnings vs Market: AG8's earnings (23% per year) are forecast to grow slower than the German market (23.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AG8's revenue (6.6% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: AG8's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AG8's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has Agilent Technologies performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AG8 has high quality earnings.

Growing Profit Margin: AG8's current net profit margins (13%) are lower than last year (22.2%).


Past Earnings Growth Analysis

Earnings Trend: AG8's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: AG8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AG8 had negative earnings growth (-38.8%) over the past year, making it difficult to compare to the Life Sciences industry average (3.3%).


Return on Equity

High ROE: AG8's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Agilent Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: AG8's short term assets ($3.2B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: AG8's short term assets ($3.2B) exceed its long term liabilities ($2.7B).


Debt to Equity History and Analysis

Debt Level: AG8's debt to equity ratio (52.2%) is considered high.

Reducing Debt: AG8's debt to equity ratio has increased from 39.8% to 52.2% over the past 5 years.

Debt Coverage: AG8's debt is well covered by operating cash flow (32.6%).

Interest Coverage: AG8's interest payments on its debt are well covered by EBIT (17.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Agilent Technologies's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AG8's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: AG8's dividend (0.75%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: AG8 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AG8's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.2%), AG8's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AG8's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Mike McMullen (59 yo)

5.42yrs

Tenure

US$12,520,566

Compensation

Mr. Michael R. McMullen, also known as Mike, has been the President of Agilent Technologies, Inc., since September 17, 2014 and Chief Executive Officer since March 18, 2015. Mr. McMullen has been a Directo ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD12.52M) is above average for companies of similar size in the German market ($USD5.26M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael McMullen
CEO, President & Director5.42yrsUS$12.52m0.11%
$ 28.4m
Robert McMahon
Senior VP & CFO1.92yrsUS$4.38m0.0020%
$ 510.4k
Michael Tang
Senior VP4.58yrsUS$2.34m0.012%
$ 3.0m
Jacob Thaysen
Senior VP and President of Life Sciences & Applied Markets Groupno dataUS$2.90m0.033%
$ 8.4m
Rodney Gonsalves
Principal Accounting Officer5.25yrsno data0.014%
$ 3.4m
Darlene J. Solomon
CTO & Senior VP16.92yrsno datano data
Ankur Dhingra
Vice President of Investor Relationsno datano datano data
Dominique Grau
Senior Vice President of Human Resources6yrsUS$2.21m0.024%
$ 6.1m
Richard Burdsall
Senior Vice President of Global Infrastructure Servicesno datano datano data
Yvonne Mackie
MD of UK & Ireland Operations and VP of Human Resources - Europe15.58yrsno datano data
Henrik Ancher-Jensen
Senior VP and President of Order Fulfillment & Supply Chain6.92yrsUS$2.26m0.0076%
$ 1.9m
Samraat Raha
Senior Vice President2.33yrsno data0.019%
$ 4.9m

5.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: AG8's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael McMullen
CEO, President & Director5.42yrsUS$12.52m0.11%
$ 28.4m
Heidi Fields
Independent Director20.5yrsUS$331.49kno data
Paul Clark
Independent Non-Executive Director14.25yrsUS$356.49k0.0015%
$ 374.6k
Tadataka Yamada
Independent Director9.58yrsUS$351.49k0.0040%
$ 1.0m
George Scangos
Independent Director5.92yrsUS$331.49k0.0047%
$ 1.2m
Dow Wilson
Independent Director2.42yrsUS$341.49k0.0029%
$ 721.6k
Boon Hwee Koh
Independent Non-Executive Chairman3.42yrsUS$486.49k0.028%
$ 7.2m
Daniel Podolsky
Independent Director5.08yrsUS$341.49k0.0084%
$ 2.1m
Mala Anand
Independent Director1.42yrsUS$282.64k0.0019%
$ 467.7k
Hans Bishop
Independent Director3.08yrsUS$331.49k0.0046%
$ 1.2m
Sue Rataj
Independent Director4.92yrsUS$341.49k0.0064%
$ 1.6m

5.1yrs

Average Tenure

65yo

Average Age

Experienced Board: AG8's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AG8 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Agilent Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agilent Technologies, Inc.
  • Ticker: AG8
  • Exchange: DB
  • Founded: 1999
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$29.745b
  • Listing Market Cap: US$25.143b
  • Shares outstanding: 308.78m
  • Website: https://www.agilent.com

Number of Employees


Location

  • Agilent Technologies, Inc.
  • 5301 Stevens Creek Boulevard
  • Santa Clara
  • California
  • 95051
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1999
AG8DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1999
A *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1999
0HAVLSE (London Stock Exchange)YesCommon StockGBUSDNov 1999
AG8ETLX (Eurotlx)YesCommon StockITEURNov 1999
A1GI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. It operates in three segments: Life Sciences and Applied Markets ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 21:18
End of Day Share Price2020/07/31 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.