Market Cap
US$3.3b
Last Updated
2020/04/03 23:30 UTC
Data Sources
Company Financials +
Executive Summary
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet.
Similar Companies
Share Price & News
How has AGCO's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AGCO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.8%
AGCO
-0.3%
US Machinery
-2.0%
US Market
1 Year Return
-38.9%
AGCO
-25.9%
US Machinery
-15.1%
US Market
Return vs Industry: AGCO underperformed the US Machinery industry which returned -25.9% over the past year.
Return vs Market: AGCO underperformed the US Market which returned -15.1% over the past year.
Shareholder returns
| AGCO | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.8% | -0.3% | -2.0% |
| 30 Day | -30.7% | -22.2% | -19.7% |
| 90 Day | -43.6% | -31.6% | -23.2% |
| 1 Year | -38.3%-38.9% | -23.8%-25.9% | -13.4%-15.1% |
| 3 Year | -26.7%-28.6% | -3.3%-10.4% | 10.9%3.7% |
| 5 Year | -4.5%-8.8% | 18.2%3.2% | 28.4%14.4% |
Price Volatility Vs. Market
How volatile is AGCO's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Here's Why AGCO (NYSE:AGCO) Can Manage Its Debt Responsibly2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At AGCO Corporation's (NYSE:AGCO) P/E Ratio3 weeks ago | Simply Wall St
Why AGCO Corporation (NYSE:AGCO) Could Be Worth WatchingValuation
Is AGCO undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AGCO ($43.5) is trading below our estimate of fair value ($88.09)
Significantly Below Fair Value: AGCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AGCO is poor value based on its PE Ratio (26.5x) compared to the Machinery industry average (14.7x).
PE vs Market: AGCO is poor value based on its PE Ratio (26.5x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: AGCO is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: AGCO is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (1.5x).
Next Steps
Future Growth
How is AGCO forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
36.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AGCO's forecast earnings growth (36.8% per year) is above the savings rate (1.7%).
Earnings vs Market: AGCO's earnings (36.8% per year) are forecast to grow faster than the US market (13.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AGCO's revenue (0.9% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: AGCO's revenue (0.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AGCO's Return on Equity is forecast to be low in 3 years time (13%).
Next Steps
Past Performance
How has AGCO performed over the past 5 years?
-3.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AGCO has a large one-off loss of $185.6M impacting its December 31 2019 financial results.
Growing Profit Margin: AGCO's current net profit margins (1.4%) are lower than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: AGCO's earnings have declined by -3.3% per year over the past 5 years.
Accelerating Growth: AGCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AGCO had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Machinery industry average (-2%).
Return on Equity
High ROE: AGCO's Return on Equity (4.2%) is considered low.
Next Steps
Financial Health
How is AGCO's financial position?
Financial Position Analysis
Short Term Liabilities: AGCO's short term assets ($3.7B) exceed its short term liabilities ($2.9B).
Long Term Liabilities: AGCO's short term assets ($3.7B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: AGCO's debt to equity ratio (46.3%) is considered high.
Reducing Debt: AGCO's debt to equity ratio has increased from 31.4% to 46.3% over the past 5 years.
Debt Coverage: AGCO's debt is well covered by operating cash flow (51.7%).
Interest Coverage: AGCO's interest payments on its debt are well covered by EBIT (26.3x coverage).
Balance Sheet
Inventory Level: AGCO has a high level of physical assets or inventory.
Debt Coverage by Assets: AGCO's debt is covered by short term assets (assets are 2.8x debt).
Next Steps
Dividend
What is AGCO's current dividend yield, its reliability and sustainability?
1.47%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AGCO's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: AGCO's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AGCO has been paying a dividend for less than 10 years.
Growing Dividend: AGCO's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.3%), AGCO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AGCO's dividends in 3 years are forecast to be thoroughly covered by earnings (12.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.8yrs
Average management tenure
CEO
Martin Richenhagen (66yo)
15.75s
Tenure
US$20,648,619
Compensation
Prof. Dr. Martin H. Richenhagen has been Director of Linde plc since October 22, 2018. He has been the Chairman of AGCO Corporation since August 15, 2006 and has been its President and Chief Executive Offi ...
CEO Compensation Analysis
Compensation vs Market: Martin's total compensation ($USD20.65M) is above average for companies of similar size in the US market ($USD5.69M).
Compensation vs Earnings: Martin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 15.75yrs | US$20.65m | 0.70% $22.9m | |
| Senior VP & CFO | 17.83yrs | US$3.00m | 0.15% $4.9m | |
| Senior VP & GM of North America | 14.25yrs | US$3.18m | 0.081% $2.6m | |
| Senior VP & Chief Supply Chain Officer | 11.75yrs | US$3.06m | 0.10% $3.4m | |
| Senior VP & COO | 1.25yrs | no data | 0.042% $1.4m | |
| VP & Chief Accounting Officer | 1.92yrs | no data | 0.0056% $184.1k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP | 6.83yrs | no data | no data | |
| Chief Communications Officer | 2.5yrs | no data | no data | |
| Senior VP and GM of Asia | 16.25yrs | US$3.29m | 0.11% $3.5m |
11.8yrs
Average Tenure
57yo
Average Age
Experienced Management: AGCO's management team is seasoned and experienced (11.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 15.75yrs | US$20.65m | 0.70% $22.9m | |
| Lead Independent Director | no data | US$279.71k | 0.023% $756.1k | |
| Independent Director | 6.5yrs | US$222.31k | 0.016% $513.9k | |
| Independent Director | 6.5yrs | US$226.15k | 0.016% $511.3k | |
| Independent Director | 21.17yrs | US$245.07k | 0.032% $1.0m | |
| Independent Director | 20yrs | US$249.04k | 0.032% $1.1m | |
| Independent Director | 12.25yrs | US$254.50k | 0.026% $833.5k | |
| Independent Director | 3yrs | US$223.55k | 0.0038% $123.7k | |
| Director | 8.75yrs | US$220.00k | 0.023% $749.0k | |
| Independent Director | 15.33yrs | US$238.44k | 0.022% $720.9k |
12.3yrs
Average Tenure
67.5yo
Average Age
Experienced Board: AGCO's board of directors are seasoned and experienced ( 12.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
AGCO Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: AGCO Corporation
- Ticker: AGCO
- Exchange: NYSE
- Founded: 1990
- Industry: Agricultural and Farm Machinery
- Sector: Capital Goods
- Market Cap: US$3.265b
- Shares outstanding: 75.05m
- Website: https://www.agcocorp.com
Number of Employees
Location
- AGCO Corporation
- 4205 River Green Parkway
- Duluth
- Georgia
- 30096
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AGCO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1994 |
| AGJ | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Apr 1994 |
| AGJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1994 |
| AGJ | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Apr 1994 |
| AGJ | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Apr 1994 |
Biography
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers high horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 23:30 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.