NYSE:AGCO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.


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


Market Performance


7 Day Return

0.8%

NYSE:AGCO

3.1%

US Machinery

1.1%

US Market


1 Year Return

28.9%

NYSE:AGCO

-3.4%

US Machinery

2.1%

US Market

AGCO outperformed the Machinery industry which returned -3.4% over the past year.

AGCO outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

AGCOIndustryMarket
7 Day0.8%3.1%1.1%
30 Day12.8%9.1%3.7%
90 Day1.7%1.8%2.3%
1 Year30.1%28.9%-1.4%-3.4%4.4%2.1%
3 Year66.6%62.1%52.7%42.8%47.0%37.4%
5 Year74.6%66.5%55.6%36.3%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AGCO's share price is below the future cash flow value, but not at a moderate discount (< 20%).

AGCO's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AGCO is good value based on earnings compared to the US Machinery industry average.

AGCO is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

AGCO is poor value based on expected growth next year.


Price Based on Value of Assets

AGCO is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is AGCO expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AGCO's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

AGCO's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

AGCO's revenue growth is positive but not above the United States of America market average.

AGCO's earnings growth is positive but not above the United States of America market average.

AGCO's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

AGCO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has AGCO performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AGCO's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

AGCO's 1-year earnings growth exceeds its 5-year average (70.2% vs -11.1%)

AGCO's earnings growth has exceeded the US Machinery industry average in the past year (70.2% vs 18.7%).


Return on Equity

AGCO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AGCO used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

AGCO has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AGCO's financial position?


Financial Position Analysis

AGCO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AGCO's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AGCO's level of debt (59%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (30.2% vs 59% today).

Debt is well covered by operating cash flow (31%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

0.84%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AGCO's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

AGCO's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, AGCO has been paying a dividend for less than 10 years.

Dividend payments have increased, but AGCO only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (8.9x coverage).


Next Steps

Management

What is the CEO of AGCO's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Martin Richenhagen (66yo)

15.2yrs

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

Martin's remuneration is higher than average for companies of similar size in United States of America.

Martin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

54.5yo

Average Age

The average tenure for the AGCO management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.7yrs

Average Tenure

67.5yo

Average Age

The average tenure for the AGCO board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

AGCO individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$364,78012 Aug 19
Gary Collar
EntityIndividual
Shares5,000
Max PriceUS$72.96
SellUS$60,30812 Aug 19
Richard Smith
EntityIndividual
Role
Senior Key Executive
Senior VP and GM of Europe & Middle East
Shares825
Max PriceUS$73.10
SellUS$338,46306 Aug 19
Richard Smith
EntityIndividual
Role
Senior Key Executive
Senior VP and GM of Europe & Middle East
Shares4,651
Max PriceUS$72.77
SellUS$169,91105 Aug 19
Lara Long
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares2,326
Max PriceUS$73.05
SellUS$1,585,94409 May 19
Robert Crain
EntityIndividual
Role
Senior Key Executive
Senior VP & GM of Americas
Shares21,767
Max PriceUS$72.86
SellUS$224,40026 Feb 19
Lucinda Smith
EntityIndividual
Shares3,300
Max PriceUS$68.00
SellUS$438,90025 Feb 19
Lucinda Smith
EntityIndividual
Shares6,600
Max PriceUS$66.50
SellUS$139,24725 Feb 19
Lara Long
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares2,100
Max PriceUS$66.31
SellUS$322,21515 Feb 19
Gary Collar
EntityIndividual
Shares5,000
Max PriceUS$64.44
SellUS$214,50014 Feb 19
Lucinda Smith
EntityIndividual
Shares3,300
Max PriceUS$65.00
SellUS$117,25013 Nov 18
Gary Collar
EntityIndividual
Shares2,070
Max PriceUS$56.64

Ownership Breakdown


Management Team

  • Andy Beck (55yo)

    Senior VP & CFO

    • Tenure: 17.3yrs
    • Compensation: US$3.00m
  • Martin Richenhagen (66yo)

    Chairman

    • Tenure: 15.2yrs
    • Compensation: US$20.65m
  • Robert Crain (59yo)

    Senior VP & GM of Americas

    • Tenure: 13.7yrs
    • Compensation: US$3.18m
  • Hans-Bernd Veltmaat (64yo)

    Senior VP & Chief Supply Chain Officer

    • Tenure: 11.2yrs
    • Compensation: US$3.06m
  • Greg Peterson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Ulrich Stockheim

    Chief Communications Officer

    • Tenure: 1.9yrs
  • Eric Hansotia (50yo)

    Senior VP & COO

    • Tenure: 0.7yrs
  • Rob Smith (54yo)

    Senior VP and GM of Europe & Middle East

    • Tenure: 6yrs
    • Compensation: US$2.48m
  • Roger Batkin (50yo)

    Senior VP

    • Tenure: 6.3yrs
  • Lara Long (49yo)

    VP & Chief Accounting Officer

    • Tenure: 1.3yrs

Board Members

  • Gerry Shaheen (74yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$279.71k
  • Mike Arnold (63yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$222.31k
  • Roy Armes (66yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$226.15k
  • Wolfgang Deml (73yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$245.07k
  • Hendrikus Visser (74yo)

    Director

    • Tenure: 19.4yrs
    • Compensation: US$249.04k
  • George Minnich (69yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: US$254.50k
  • Martin Richenhagen (66yo)

    Chairman

    • Tenure: 15.2yrs
    • Compensation: US$20.65m
  • Suzanne Clark (51yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$223.55k
  • Mallika Srinivasan (60yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$220.00k
  • P. Benson (72yo)

    Director

    • Tenure: 14.8yrs
    • 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$5.809b
  • Shares outstanding: 76.24m
  • 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. The company offers high horsepower tractors for larger farms, primarily for row crop production ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:30
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.