NYSE:AGCO

Stock Analysis Report

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Executive Summary

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AGCO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

AGCO

-0.7%

US Machinery

-0.9%

US Market


1 Year Return

52.6%

AGCO

21.7%

US Machinery

19.6%

US Market

Return vs Industry: AGCO exceeded the US Machinery industry which returned 24.1% over the past year.

Return vs Market: AGCO exceeded the US Market which returned 21% over the past year.


Shareholder returns

AGCOIndustryMarket
7 Day1.8%-0.7%-0.9%
30 Day16.7%5.9%3.0%
90 Day40.1%15.3%11.5%
1 Year54.1%52.6%24.7%21.7%22.3%19.6%
3 Year59.2%54.7%28.0%19.0%45.3%35.7%
5 Year160.4%148.3%177.7%147.5%124.8%99.9%

Long-Term 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

Valuation

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

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGCO ($114.11) is trading below our estimate of fair value ($122.86)

Significantly Below Fair Value: AGCO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AGCO is poor value based on its PE Ratio (42.2x) compared to the US Machinery industry average (34.1x).

PE vs Market: AGCO is poor value based on its PE Ratio (42.2x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: AGCO is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: AGCO's PB Ratio (3x) is in line with the US Machinery industry average.


Next Steps

Future Growth

How is AGCO forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGCO's forecast earnings growth (23.1% per year) is above the savings rate (2%).

Earnings vs Market: AGCO's earnings (23.1% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: AGCO's revenue (8.6% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: AGCO's revenue (8.6% 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 (19.6%).


Next Steps

Past Performance

How has AGCO performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGCO has a large one-off loss of $208.0M impacting its September 30 2020 financial results.

Growing Profit Margin: AGCO's current net profit margins (2.3%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: AGCO's earnings have declined by 2.4% 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 (-34.4%) over the past year, making it difficult to compare to the Machinery industry average (-15.5%).


Return on Equity

High ROE: AGCO's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is AGCO's financial position?


Financial Position Analysis

Short Term Liabilities: AGCO's short term assets ($3.9B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: AGCO's short term assets ($3.9B) exceed its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: AGCO's debt to equity ratio (54.9%) is considered high.

Reducing Debt: AGCO's debt to equity ratio has increased from 51.7% to 54.9% over the past 5 years.

Debt Coverage: AGCO's debt is well covered by operating cash flow (64%).

Interest Coverage: AGCO's interest payments on its debt are well covered by EBIT (33.4x coverage).


Balance Sheet


Next Steps

Dividend

What is AGCO current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGCO's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: AGCO's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.84%).


Stability and Growth of Payments

Stable Dividend: AGCO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AGCO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AGCO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AGCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Eric Hansotia (51 yo)

no data

Tenure

US$3,615,497

Compensation

Mr. Eric P. Hansotia has been Chairman, President and Chief Executive Officer at AGCO Corporation since January 1, 2021. Mr. Hansotia served as the Chief Operating Officer of AGCO Corporation since January...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD3.62M) is below average for companies of similar size in the US market ($USD6.20M).

Compensation vs Earnings: Eric's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Hansotia
Chairmanno dataUS$3.62m0.062%
$ 5.3m
Andrew Beck
Senior VP & CFO18.58yrsUS$4.86m0.16%
$ 13.7m
Hans-Bernd Veltmaat
Senior VP & Chief Supply Chain Officer12.5yrsUS$3.91m0.13%
$ 10.8m
Lara Long
VP & Chief Accounting Officer2.67yrsno data0.0027%
$ 229.9k
Greg Peterson
Vice President of Investor Relationsno datano datano data
Roger Batkin
Senior VP7.58yrsno datano data
Gary Collar
Senior VP and GM of Asia17yrsUS$3.29m0.10%
$ 8.8m
Robert Crain
Senior VP & GM of North America15yrsUS$3.18m0.073%
$ 6.2m
Lucinda Smith
Senior Vice President of Global Business Services7.83yrsno data0.039%
$ 3.4m
Josip Tomasevic
Senior VP & Chief Procurement Officerno datano data0.033%
$ 2.8m
Luis Fernando Felli
Senior VP & GM of South America2yrsno data0.0036%
$ 307.7k
Torsten Dehner
Senior VP and GM of Europe & Middle East1yrno data0.0071%
$ 606.0k

7.8yrs

Average Tenure

53yo

Average Age

Experienced Management: AGCO's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Hansotia
Chairmanno dataUS$3.62m0.062%
$ 5.3m
Gerald Shaheen
Lead Independent Directorno dataUS$326.00k0.025%
$ 2.2m
Michael Arnold
Independent Director7.25yrsUS$271.78k0.019%
$ 1.6m
Roy Armes
Independent Director7.25yrsUS$270.00k0.019%
$ 1.7m
Wolfgang Deml
Independent Director21.92yrsUS$289.22k0.014%
$ 1.2m
Wolfgang Kirsch
Director0.75yrno datano data
George Minnich
Independent Director13yrsUS$301.81k0.028%
$ 2.4m
Suzanne Clark
Independent Director3.75yrsUS$270.00k0.0065%
$ 551.3k
Mallika Srinivasan
Director9.5yrsUS$270.00k0.027%
$ 2.3m
P. Benson
Independent Director16.08yrsUS$286.30k0.019%
$ 1.6m
Sondra Barbour
Independent Director1.75yrsUS$82.09k0.0038%
$ 323.9k
Bob De Lange
Directorno datano datano data

7.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: AGCO's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AGCO 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

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$8.547b
  • Shares outstanding: 74.90m
  • Website: https://www.agcocorp.com

Number of Employees


Location

  • AGCO Corporation
  • 4205 River Green Parkway
  • Duluth
  • Georgia
  • 30096
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGCONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1994
AGJDB (Deutsche Boerse AG)YesCommon StockDEEURApr 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 le...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:39
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.