Agco Corp

Industrials
Industrial Machinery/Components
www.agcocorp.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.42B
PE 44
Debt $4.37B
Cash $642.60M
EV $11.15B
FCF $352.70M

Earnings

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Sales & Net Margins

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Earnings	$167.00M
EBIT	$539.80M
ROE	4%
ROA	4%
FCF	$352.70M
Equity	$4.15B
Growth Stability	58%
PE	44.44
PEG	1.03
PB	1.79
P/FCF	21.04
P/S	0.59
Price/Cash	0.09
Debt/Equity	1.05
Debt/FCF	12.4
Net Margins	-2%
Gross Margins	25%
Op. Margins	4%
Earnings CAGR	23%
Sales Growth YoY	-25%
Sales Growth QoQ	-20%
Sales CAGR	8%
FCF CAGR	11%
Equity CAGR	4%
Earnings Stability	0.43
Earnings Growth YoY	-90%
Earnings Growth QoQ	-108%
Earnings CAGR 5Y	43%

Sales CAGR 5Y	12%
FCF CAGR 5Y	5%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	45%
Equity CAGR 3Y	10%
Market Cap	$7.42B
Revenue	$12.58B
Dividend Yield	4%
Payout Ratio	164%
Assets	$13.51B
Total Debt	$4.37B
Cash	$642.60M
Shares Outstanding	74.6M
EV	11.15B
Earnings Score	57%
Moat Score	37%
Safety Score	60%
Final Score	51%
Working Capital	2.26B
Current Ratio	1.53
Gross Profit	$3.19B
Shares Growth 3y	2%
Equity Growth QoQ	2%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Agco is a global manufacturer of agricultural equipment. The company has five principal brands: Fendt, Massey Ferguson, Challenger, Valtra, and GSI. Unlike its competitors, Agco's product line extends beyond self-propelled equipment and implements by offering grain handling systems and livestock management solutions. Its products are available through a global dealer network, which includes over 3,200 dealer and distribution locations. Additionally, Agco offers both retail and wholesale financing to customers through its joint venture with Rabobank, a European food and agriculture focused bank.

SEC Filings

Direct access to Agco Corp (AGCO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Agco Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Agco Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 23%

Stability 43%

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Agco Corp Discounted Cash Flow

Fully customizable DCF calculator online for Agco Corp .

Years

Calculation mode

= $7.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$353M	$390M	$432M	$478M	$529M	$585M	$647M	$716M	$792M	$877M	$970M	$9.7B
DCF		$355M	$357M	$359M	$361M	$363M	$365M	$367M	$370M	$372M	$374M	$3.7B
Value	$7.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	4%	2%	2%	3%	1%	5%	8%	7%	8%	-2%
ROA	-	6%	4%	5%	6%	4%	7%	11%	13%	15%	4%
ROE	-	9%	6%	6%	9%	4%	14%	26%	23%	25%	4%

Bad Net Margins (-1.96%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	4.23	10.57	4.84	4.19	3.18	3.05	3.85	3.66	2.38	12.4
Debt over Equity	0.34	0.46	0.63	0.58	0.55	0.46	0.63	0.44	0.42	0.3	1.05
Growth Stability	-	-	-	68%	100%	58%	100%	100%	100%	100%	58%

Bad Debt/FCF ratio (12.4)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.05)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (58%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-23%	-1%	12%	13%	-3%	1%	22%	14%	14%	12%
Earnings YoY growth	-	-35%	-39%	16%	52%	-57%	242%	114%	-2%	34%	43%
Equity YoY growth	-	-18%	-2%	9%	-3%	-3%	4%	14%	13%	20%	12%
FCF YoY growth	-	128%	-46%	122%	5%	8%	48%	-38%	15%	30%	5%