NYSE:AGCO

Stock Analysis Report

Executive Summary

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


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

1.0%

AGCO

2.9%

US Machinery

2.4%

US Market


1 Year Return

-31.7%

AGCO

-19.5%

US Machinery

-10.0%

US Market

Return vs Industry: AGCO underperformed the US Machinery industry which returned -23.5% over the past year.

Return vs Market: AGCO underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

AGCOIndustryMarket
7 Day1.0%2.9%2.4%
30 Day-22.3%-13.4%-11.0%
90 Day-37.1%-26.7%-19.4%
1 Year-31.1%-31.7%-17.2%-19.5%-8.1%-10.0%
3 Year-19.4%-21.5%2.3%-5.2%17.3%9.6%
5 Year5.7%0.8%25.6%9.6%36.1%21.1%

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?

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGCO ($47.69) is trading below our estimate of fair value ($88.59)

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 (29x) compared to the Machinery industry average (15.2x).

PE vs Market: AGCO is poor value based on its PE Ratio (29x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: AGCO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: AGCO is good value based on its PB Ratio (1.3x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

How is AGCO forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGCO's forecast earnings growth (35.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AGCO's earnings (35.4% 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 (0.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: AGCO's revenue (0.8% 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 (-1.6%).


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


Next Steps

Dividend

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

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGCO's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: AGCO's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (5.66%).


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 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$15,287,732

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 ($USD15.29M) is above average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Richenhagen
Chairman15.75yrsUS$15.29m0.70% $25.2m
Andrew Beck
Senior VP & CFO17.83yrsUS$4.86m0.15% $5.4m
Eric Hansotia
Senior VP & COO1.25yrsUS$3.62m0.042% $1.5m
Hans-Bernd Veltmaat
Senior VP & Chief Supply Chain Officer11.75yrsUS$3.91m0.10% $3.8m
Lara Long
VP & Chief Accounting Officer1.92yrsno data0.0056% $201.9k
Greg Peterson
Vice President of Investor Relationsno datano datano data
Roger Batkin
Senior VP6.83yrsno datano data
Ulrich Stockheim
Chief Communications Officer2.5yrsno datano data
Gary Collar
Senior VP and GM of Asia16.25yrsUS$3.29m0.11% $3.9m
Robert Crain
Senior VP & GM of North America14.25yrsUS$3.18m0.081% $2.9m

11.8yrs

Average Tenure

57yo

Average Age

Experienced Management: AGCO's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Richenhagen
Chairman15.75yrsUS$15.29m0.70% $25.2m
Gerald Shaheen
Lead Independent Directorno dataUS$326.00k0.023% $829.0k
Michael Arnold
Independent Director6.5yrsUS$271.78k0.016% $563.4k
Roy Armes
Independent Director6.5yrsUS$270.00k0.016% $560.5k
Wolfgang Deml
Independent Director21.17yrsUS$289.22k0.032% $1.1m
Hendrikus Visser
Independent Director20yrsUS$297.00k0.032% $1.2m
George Minnich
Independent Director12.25yrsUS$301.81k0.026% $913.8k
Suzanne Clark
Independent Director3yrsUS$270.00k0.0038% $135.7k
Mallika Srinivasan
Director8.75yrsUS$270.00k0.023% $821.1k
P. Benson
Independent Director15.33yrsUS$286.30k0.022% $790.3k

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$3.579b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGCONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1994
AGJXTRA (XETRA Trading Platform)YesCommon StockDEEURApr 1994
AGJDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1994
AGJETLX (Eurotlx)YesCommon StockITEURApr 1994
AGJBRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 05:04
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.