Market Cap
US$5.5b
Last Updated
2020/01/23 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
Undervalued with proven track record.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.1%
AGCO
-1.7%
US Machinery
-0.09%
US Market
1 Year Return
17.6%
AGCO
20.1%
US Machinery
23.9%
US Market
Return vs Industry: AGCO underperformed the US Machinery industry which returned 22.4% over the past year.
Return vs Market: AGCO underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| AGCO | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -1.7% | -0.09% |
| 30 Day | -6.3% | -0.9% | 3.1% |
| 90 Day | -5.6% | 5.0% | 10.4% |
| 1 Year | 18.7%17.6% | 22.4%20.1% | 26.6%23.9% |
| 3 Year | 17.4%14.3% | 39.3%30.3% | 50.9%41.2% |
| 5 Year | 74.3%66.2% | 77.6%56.2% | 78.1%58.5% |
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
5 days ago | Simply Wall St
Should You Or Shouldn't You: A Dividend Analysis on AGCO Corporation (NYSE:AGCO)2 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out AGCO (NYSE:AGCO) Before It's Too Late3 weeks ago | Simply Wall St
Is AGCO Corporation (NYSE:AGCO) Trading At A 23% Discount?Valuation
Is AGCO undervalued compared to its fair value and its price relative to the market?
28.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AGCO ($74.54) is trading below our estimate of fair value ($101.13)
Significantly Below Fair Value: AGCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AGCO is good value based on its PE Ratio (18.3x) compared to the Machinery industry average (23.4x).
PE vs Market: AGCO is good value based on its PE Ratio (18.3x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: AGCO is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: AGCO is good value based on its PB Ratio (1.9x) compared to the US Machinery industry average (2.5x).
Next Steps
Future Growth
How is AGCO forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
15.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AGCO's forecast earnings growth (15.7% per year) is above the savings rate (1.7%).
Earnings vs Market: AGCO's earnings (15.7% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: AGCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: AGCO's revenue (1.9% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: AGCO's revenue (1.9% 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?
-5.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AGCO has high quality earnings.
Growing Profit Margin: AGCO's current net profit margins (3.4%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: AGCO's earnings have declined by -5% per year over the past 5 years.
Accelerating Growth: AGCO's earnings growth over the past year (35.1%) exceeds its 5-year average (-5% per year).
Earnings vs Industry: AGCO earnings growth over the past year (35.1%) exceeded the Machinery industry 9.6%.
Return on Equity
High ROE: AGCO's Return on Equity (10.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is AGCO's financial position?
Financial Position Analysis
Short Term Liabilities: AGCO's short term assets ($4.0B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: AGCO's short term assets ($4.0B) exceed its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: AGCO's debt to equity ratio (58.6%) is considered high.
Reducing Debt: AGCO's debt to equity ratio has increased from 37.4% to 58.6% over the past 5 years.
Debt Coverage: AGCO's debt is well covered by operating cash flow (29.2%).
Interest Coverage: AGCO's interest payments on its debt are well covered by EBIT (28.4x 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 2.2x debt).
Next Steps
Dividend
What is AGCO's current dividend yield, its reliability and sustainability?
0.88%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AGCO's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: AGCO's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 low payout ratio (15.2%), 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 (11.4% payout ratio).
Next Steps
Management
What is the CEO of AGCO's salary, the management and board of directors tenure and is there insider trading?
6.6yrs
Average management tenure
CEO
Martin Richenhagen (66yo)
15.5yrs
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 ($USD6.46M).
Compensation vs Earnings: Martin's compensation has increased by more than 20% in the past year.
Management Age and Tenure
6.6yrs
Average Tenure
54.5yo
Average Age
Experienced Management: AGCO's management team is seasoned and experienced (6.6 years average tenure).
Board Age and Tenure
12.0yrs
Average Tenure
67.5yo
Average Age
Experienced Board: AGCO's board of directors are seasoned and experienced ( 12 years average tenure).
Insider Trading
Insider Buying: AGCO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 607 |
| Max Price | US$79.50 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$77.76 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$72.96 |
| Entity | Individual |
| Role | Senior Key Executive Executive Officer |
| Shares | 825 |
| Max Price | US$73.10 |
| Entity | Individual |
| Role | Senior Key Executive Executive Officer |
| Shares | 4,651 |
| Max Price | US$72.77 |
| Entity | Individual |
| Role | Chief Accounting Officer VP & Chief Accounting Officer |
| Shares | 2,326 |
| Max Price | US$73.05 |
| Entity | Individual |
| Role | Senior Key Executive Senior VP & GM of North America |
| Shares | 21,767 |
| Max Price | US$72.86 |
| Entity | Individual |
| Shares | 3,300 |
| Max Price | US$68.00 |
| Entity | Individual |
| Shares | 6,600 |
| Max Price | US$66.50 |
| Entity | Individual |
| Role | Chief Accounting Officer VP & Chief Accounting Officer |
| Shares | 2,100 |
| Max Price | US$66.31 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | US$64.44 |
| Entity | Individual |
| Shares | 3,300 |
| Max Price | US$65.00 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Andy Beck (55yo)
Senior VP & CFO
- Tenure: 17.6yrs
- Compensation: US$3.00m
Martin Richenhagen (66yo)
Chairman
- Tenure: 15.5yrs
- Compensation: US$20.65m
Robert Crain (59yo)
Senior VP & GM of North America
- Tenure: 14yrs
- Compensation: US$3.18m
Hans-Bernd Veltmaat (64yo)
Senior VP & Chief Supply Chain Officer
- Tenure: 11.5yrs
- Compensation: US$3.06m
Greg Peterson
Vice President of Investor Relations
Ulrich Stockheim
Chief Communications Officer
- Tenure: 2.3yrs
Eric Hansotia (50yo)
Senior VP & COO
- Tenure: 1yrs
Rob Smith (54yo)
Executive Officer
- Tenure: 6.3yrs
- Compensation: US$2.48m
Roger Batkin (50yo)
Senior VP
- Tenure: 6.6yrs
Lara Long (49yo)
VP & Chief Accounting Officer
- Tenure: 1.7yrs
Board Members
Gerry Shaheen (74yo)
Lead Director
- Compensation: US$279.71k
Mike Arnold (63yo)
Independent Director
- Tenure: 6.3yrs
- Compensation: US$222.31k
Roy Armes (66yo)
Independent Director
- Tenure: 6.3yrs
- Compensation: US$226.15k
Wolfgang Deml (73yo)
Independent Director
- Tenure: 20.9yrs
- Compensation: US$245.07k
Hendrikus Visser (74yo)
Independent Director
- Tenure: 19.8yrs
- Compensation: US$249.04k
George Minnich (69yo)
Independent Director
- Tenure: 12yrs
- Compensation: US$254.50k
Martin Richenhagen (66yo)
Chairman
- Tenure: 15.5yrs
- Compensation: US$20.65m
Suzanne Clark (51yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$223.55k
Mallika Srinivasan (60yo)
Director
- Tenure: 8.5yrs
- Compensation: US$220.00k
P. Benson (72yo)
Independent Director
- Tenure: 15.1yrs
- Compensation: US$238.44k
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$5.493b
- Shares outstanding: 75.52m
- 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 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1994 |
| AGJ | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Apr 1994 |
Biography
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company offers high horsepower tractors for larger farms, primarily for row crop production; 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, and residential uses. It also offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, including 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. In addition, the company offers hay tools and forage equipment comprising 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, it offers 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; and planters and other planting equipment, and loaders. Additionally, it offers grain storage bins and related drying and handling equipment systems, as well as seed-processing systems, swine and poultry feed storage and delivery, ventilation and watering systems, and egg production systems and broiler production equipment; and replacement parts, as well as produces diesel engines, gears, and generating sets. It 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 | 2020/01/23 23:30 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.