AGCO Stock Analysis, Valuation (NYSE:AGCO)

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$67.08 $1.89 (2.74%) AGCO stock closing price Feb 16, 2018 (Closing)
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AGCO
Updated on : Feb 16, 2018
previous close
AGCO 67.1 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Machinery-Farm
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.6%
Operating Profit
Operating Margin:
4.9%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$606.8M
Net Income:
$44.3M
Dividend Yield
AGCO dividend yield:
0.83%
PROS      CONS
Recent Growth
Cash Flow
FCF Margin
PS Valuation
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AGCO PS :
0.6
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.3%
Return on Equity:
6.3%
Free Cash Flow Margin:
21.5%
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AGCO Stock Analysis

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Investors can watch the Amigobulls AGCO stock analysis video here. This is our analyst opinion covering the buy and sell arguments for AGCO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AGCO Corporation Stock Rating 3.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for AGCO stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for AGCO valuation analysis. AGCO stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy AGCO stock?

  • The Year Over Year (YoY) revenue growth for AGCO was 20.7% in 2017 Q4.
  • The company has an operating cash flow which is 13.7 times the net income.
  • The price to earnings multiple of 22.2 is attractive when compared with the industry average PE ratio of 23.9.
  • AGCO stock is trading at a favorable price to sales multiple of 0.6 as against the Machinery-Farm industry average multiple of 1.5.
  • The company has a good Free Cash Flow (FCF) margin of 21.5%.

Should you sell AGCO stock?

  • The company saw an average annual sales decline of -3.6% in sales over the last 5 years.
  • AGCO had an unimpressive average operating margin of 4.9% during the Last Twelve Months (LTM).
  • AGCO's LTM Net margins were poor at 2.2%.

Comments on this video and AGCO stock

Amigobulls AGCO stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of AGCO stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, AGCO revenue growth and profit or net income are two main metrics which help in identifying whether AGCO stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of AGCO stock.