NYSE:A

Stock Analysis Report

Executive Summary

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide.

Rewards

PE ratio (24.5x) is below the Life Sciences industry average (35.5x)

Earnings are forecast to grow 2.78% per year

Earnings grew by 238.9% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Agilent Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

A

0.8%

US Life Sciences

0.8%

US Market


1 Year Return

16.3%

A

20.1%

US Life Sciences

17.8%

US Market

Return vs Industry: A underperformed the US Life Sciences industry which returned 20.1% over the past year.

Return vs Market: A underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

AIndustryMarket
7 Day3.1%0.8%0.8%
30 Day8.5%8.3%1.8%
90 Day7.5%6.7%4.1%
1 Year17.3%16.3%20.3%20.1%20.4%17.8%
3 Year85.8%80.8%103.5%101.9%45.9%36.4%
5 Year120.2%109.8%133.2%130.0%68.1%49.6%

Price Volatility Vs. Market

How volatile is Agilent Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A ($83.42) is trading above our estimate of fair value ($77.47)

Significantly Below Fair Value: A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A is good value based on its PE Ratio (24.5x) compared to the Life Sciences industry average (35.5x).

PE vs Market: A is poor value based on its PE Ratio (24.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: A is poor value based on its PEG Ratio (8.8x)


Price to Book Ratio

PB vs Industry: A is overvalued based on its PB Ratio (5.4x) compared to the US Life Sciences industry average (5.2x).


Next Steps

Future Growth

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

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A's forecast earnings growth (2.8% per year) is above the savings rate (1.7%).

Earnings vs Market: A's earnings (2.8% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: A's earnings are forecast to grow, but not significantly.

Revenue vs Market: A's revenue (5.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: A's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A's Return on Equity is forecast to be high in 3 years time (20.4%)


Next Steps

Past Performance

How has Agilent Technologies performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A has high quality earnings.

Growing Profit Margin: A's current net profit margins (20.7%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: A's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: A's earnings growth over the past year (238.9%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: A earnings growth over the past year (238.9%) exceeded the Life Sciences industry 34.6%.


Return on Equity

High ROE: A's Return on Equity (22.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Agilent Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: A's short term assets ($3.2B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: A's short term assets ($3.2B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: A's debt to equity ratio (50.7%) is considered high.

Reducing Debt: A's debt to equity ratio has increased from 31.4% to 50.7% over the past 5 years.

Debt Coverage: A's debt is well covered by operating cash flow (42.4%).

Interest Coverage: A's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet

Inventory Level: A has a low level of unsold assets or inventory.

Debt Coverage by Assets: A's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

0.86%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Agilent Technologies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: A's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: A's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: A has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Mike McMullen (58yo)

4.8yrs

Tenure

US$11,708,230

Compensation

Mr. Michael R. McMullen, also known as Mike, has been the President of Agilent Technologies, Inc., since September 17, 2014 and Chief Executive Officer since March 18, 2015. Mr. McMullen has been a Directo ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD11.71M) is about average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: A's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

65yo

Average Age

Experienced Board: A's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: A insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$314,25624 Sep 19
Heidi Fields
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$78.56
SellUS$283,85604 Sep 19
Heidi Fields
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$70.98
SellUS$226,71527 Mar 19
Paul Clark
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,823
Max PriceUS$80.31
SellUS$92,15708 Mar 19
Rodney Gonsalves
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,155
Max PriceUS$79.79
SellUS$311,80025 Feb 19
Mark Doak
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares4,000
Max PriceUS$77.95

Ownership Breakdown

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


Management Team

  • Darlene J. Solomon (60yo)

    CTO & Senior VP

    • Tenure: 16.3yrs
  • Rodney Gonsalves (53yo)

    Chief Accounting Officer

    • Tenure: 4.6yrs
  • Mike McMullen (58yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$11.71m
  • Jacob Thaysen (44yo)

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: US$3.02m
  • Michael Tang (45yo)

    Senior VP

    • Tenure: 3.9yrs
  • Eric Gerber

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 1.1yrs
  • Dominique Grau (60yo)

    Senior Vice President of Human Resources

    • Tenure: 5.3yrs
    • Compensation: US$2.21m
  • Bob McMahon (50yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$6.58m
  • Mark Doak (64yo)

    Senior Vice President

    • Tenure: 5.3yrs
    • Compensation: US$3.32m
  • Ankur Dhingra

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Heidi Fields (64yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$294.04k
  • Paul Clark (72yo)

    Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: US$319.04k
  • Tachi Yamada (73yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$314.04k
  • George Scangos (71yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$294.04k
  • Dow Wilson (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$271.01k
  • Boon Hwee Koh (68yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$449.04k
  • Dan Podolsky (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$304.04k
  • Mike McMullen (58yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$11.71m
  • Hans Bishop (55yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$260.71k
  • Sue Rataj (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$304.04k

Company Information

Agilent Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agilent Technologies, Inc.
  • Ticker: A
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$25.664b
  • Shares outstanding: 309.47m
  • Website: https://www.agilent.com

Number of Employees


Location

  • Agilent Technologies, Inc.
  • 5301 Stevens Creek Boulevard
  • Santa Clara
  • California
  • 95051
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1999
AG8DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1999
A *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1999
0HAVLSE (London Stock Exchange)YesCommon StockGBUSDNov 1999

Biography

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. It operates in three segments: Life Sciences and Applied Markets ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:31
End of Day Share Price2019/12/11 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.