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AGRO

Adecoagro NYSE:AGRO Stock Report

Last Price

US$8.65

Market Cap

US$949.3m

7D

-4.2%

1Y

-15.4%

Updated

26 Jun, 2022

Data

Company Financials +
AGRO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends0/6

AGRO Stock Overview

Adecoagro S.A. operates as an agro-industrial company in South America.

Adecoagro Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adecoagro
Historical stock prices
Current Share PriceUS$8.65
52 Week HighUS$13.55
52 Week LowUS$6.78
Beta1.13
1 Month Change-23.11%
3 Month Change-27.68%
1 Year Change-15.45%
3 Year Change21.15%
5 Year Change-13.41%
Change since IPO-27.92%

Recent News & Updates

Jun 22

Adecoagro Has Excellent Free Cash Flow And Appropriate For Rate Hike Environment

Adecoagro is a Brazilian company that produces crops and uses its waste for ethanol production. Ethanol is mandated to be blended with at least 25% of fuel in Brazil, so the market will benefit from increased mobility. Also limited by feedstock for volumes, were yields in crops affect feedstock volumes. The markets should stay strong in the face of Ukraine and interest rate hike effects. While mark-to-market and seasonality confound the quarterly picture, the annual data shows good FCF yield, and with price increases coming, the levered returns will be high.

Jun 02

Investing For A Potential Recession: Top Consumer Staples Stocks

Investing during a bear market or recession can be difficult, as fear and uncertainty move the markets lower, and the risk to investors increases. Rising prices and market volatility limit where investors invest to avoid losing money. With the appropriate investments, preparation, and strategy, you may be able to protect your portfolio. Where there are rising consumer prices, stock prices often follow. The demand for essentials like food and beverages makes consumer staples safer investments during high volatility. A number of conventional go-to defensive Consumer Staples stocks are already overvalued. In preparation for market swings, the four stocks featured here are intended to put your money to work. Their fundamentals, attractive valuations, and solid earnings are driving catalysts in outperforming inflationary levels and stand to benefit from a bear market or recession, based on our quant ratings.

May 26
There Is A Reason Adecoagro S.A.'s (NYSE:AGRO) Price Is Undemanding

There Is A Reason Adecoagro S.A.'s (NYSE:AGRO) Price Is Undemanding

Adecoagro S.A.'s ( NYSE:AGRO ) price-to-earnings (or "P/E") ratio of 6.7x might make it look like a strong buy right...

May 10
Adecoagro (NYSE:AGRO) Takes On Some Risk With Its Use Of Debt

Adecoagro (NYSE:AGRO) Takes On Some Risk With Its Use Of Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

AGROUS FoodUS Market
7D-4.2%4.6%6.6%
1Y-15.4%-1.8%-18.4%

Return vs Industry: AGRO underperformed the US Food industry which returned -1.8% over the past year.

Return vs Market: AGRO exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is AGRO's price volatile compared to industry and market?
AGRO volatility
AGRO Average Weekly Movement7.4%
Food Industry Average Movement7.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: AGRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AGRO's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002n/aMariano Boschhttps://www.adecoagro.com

Adecoagro S.A. operates as an agro-industrial company in South America. It engages in farming crops and other agricultural products, dairy operations, and land transformation activities, as well as sugar, ethanol, and energy production activities. The company is involved in the planting, harvesting, and sale of grains and oilseeds, as well as wheat, corn, soybeans, peanuts, cotton, sunflowers, and others; provision of grain warehousing/conditioning, handling, and drying services to third parties; and purchase and sale of crops produced by third parties.

Adecoagro Fundamentals Summary

How do Adecoagro's earnings and revenue compare to its market cap?
AGRO fundamental statistics
Market CapUS$949.29m
Earnings (TTM)US$175.71m
Revenue (TTM)US$1.16b

5.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AGRO income statement (TTM)
RevenueUS$1.16b
Cost of RevenueUS$711.79m
Gross ProfitUS$444.13m
Other ExpensesUS$268.42m
EarningsUS$175.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.60
Gross Margin38.42%
Net Profit Margin15.20%
Debt/Equity Ratio79.3%

How did AGRO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AGRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AGRO?

Other financial metrics that can be useful for relative valuation.

AGRO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA5.2x
PEG Ratio-1.1x

Price to Earnings Ratio vs Peers

How does AGRO's PE Ratio compare to its peers?

AGRO PE Ratio vs Peers
The above table shows the PE ratio for AGRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.2x
AVO Mission Produce
42.4x44.1%US$1.0b
JBSS John B. Sanfilippo & Son
14.7xn/aUS$833.4m
BGS B&G Foods
26.9x12.7%US$1.7b
SENE.A Seneca Foods
8.9xn/aUS$451.3m
AGRO Adecoagro
5.4x-4.8%US$949.3m

Price-To-Earnings vs Peers: AGRO is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (23.2x).


Price to Earnings Ratio vs Industry

How does AGRO's PE Ratio compare vs other companies in the US Food Industry?

Price-To-Earnings vs Industry: AGRO is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Food industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is AGRO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AGRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: AGRO is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


Share Price vs Fair Value

What is the Fair Price of AGRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AGRO ($8.65) is trading below our estimate of fair value ($57.98)

Significantly Below Fair Value: AGRO is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: AGRO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Adecoagro forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-4.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGRO's earnings are forecast to decline over the next 3 years (-4.8% per year).

Earnings vs Market: AGRO's earnings are forecast to decline over the next 3 years (-4.8% per year).

High Growth Earnings: AGRO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AGRO's revenue (2.7% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: AGRO's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGRO's Return on Equity is forecast to be low in 3 years time (9.4%).


Discover growth companies

Past Performance

How has Adecoagro performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


45.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AGRO has high quality earnings.

Growing Profit Margin: AGRO's current net profit margins (15.2%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: AGRO's earnings have grown significantly by 45.4% per year over the past 5 years.

Accelerating Growth: AGRO's earnings growth over the past year (138.2%) exceeds its 5-year average (45.4% per year).

Earnings vs Industry: AGRO earnings growth over the past year (138.2%) exceeded the Food industry 13.1%.


Return on Equity

High ROE: AGRO's Return on Equity (15%) is considered low.


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Financial Health

How is Adecoagro's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AGRO's short term assets ($861.3M) exceed its short term liabilities ($441.8M).

Long Term Liabilities: AGRO's short term assets ($861.3M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: AGRO's net debt to equity ratio (67.2%) is considered high.

Reducing Debt: AGRO's debt to equity ratio has reduced from 113.4% to 79.3% over the past 5 years.

Debt Coverage: AGRO's debt is well covered by operating cash flow (37.5%).

Interest Coverage: AGRO's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.49%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AGRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AGRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AGRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AGRO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AGRO has not reported any payouts.


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Management

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

15.9yrs

Average management tenure


CEO

Mariano Bosch (51 yo)

20.42yrs

Tenure

Mr. Mariano Bosch has been the Chief Executive Officer of Adeco Agropecuaria S.A. and Adecoagro S.A. since 2002. Mr. Bosch is a Co-Founder of Adecoagro S.A. He serves as Independent Director at Replay Acqu...


Leadership Team

Experienced Management: AGRO's management team is seasoned and experienced (15.9 years average tenure).


Board Members

Experienced Board: AGRO's board of directors are seasoned and experienced ( 11.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Adecoagro S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Adecoagro S.A.
  • Ticker: AGRO
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$949.291m
  • Shares outstanding: 109.74m
  • Website: https://www.adecoagro.com

Number of Employees


Location

  • Adecoagro S.A.
  • Vertigo Naos Building
  • 6, Rue EugEne Ruppert
  • Luxembourg City
  • 2453
  • Luxembourg

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.