AGCO Stock Analysis, Valuation (NYSE:AGCO)

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$61.39 $0.68 (1.12%) AGCO stock closing price Jun 20, 2018 (Closing)

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 2.4/5

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 23.3% in 2018-03.
  • The AGCO stock currently trades at a price to earnings ratio of 18.1, compared to the sector average of 21.3. We rate this as a positive.
  • When compared with the Industrial Products sector average PS ratio of 1.5, the price-to-sales ratio of 0.6 for AGCO stock is attractive.

Should you sell AGCO stock?

  • Revenue declined at a CAGR of -3 over the last 5 years.
  • AGCO's TTM operating margin of 5.04 was rather poor.
  • AGCO posted a TTM Net margin of 2.5%.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The TTM ROE (Return On Equity) for AGCO is not so attractive at 7.3.
  • The company has a negative free cash flow margin of -20.2.

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.