Agco Corp
AGCO
Farm Machinery & Equipment
Mkt Cap
$7.927BPE
7.16Debt
$3.998BCash
$2.456BEV
$9.469BFCF
$802.4MP/E Ratio
7.16Debt
$3.998BCash
$2.456BEV
$9.469BFCF
$802.4MCharts data: {"Earnings":[{"time":"2014-12-30","value":404200000},{"time":"2015-12-30","value":264000000},{"time":"2016-12-30","value":160100000},{"time":"2017-12-30","value":186400000},{"time":"2018-12-30","value":283700000},{"time":"2019-12-30","value":122800000},{"time":"2020-12-30","value":419800000},{"time":"2021-12-30","value":897000000},{"time":"2022-12-30","value":874700000},{"time":"2023-12-30","value":1171300000}],"Sales":[{"time":"2014-12-30","value":9723700000},{"time":"2015-12-30","value":7467300000},{"time":"2016-12-30","value":7410500000},{"time":"2017-12-30","value":8306500000},{"time":"2018-12-30","value":9352000000},{"time":"2019-12-30","value":9041400000},{"time":"2020-12-30","value":9149700000},{"time":"2021-12-30","value":11138300000},{"time":"2022-12-30","value":12651400000},{"time":"2023-12-30","value":14412400000}],"Net Margins":[{"time":"2014-12-30","value":0.041568538724970946},{"time":"2015-12-30","value":0.035354144068137076},{"time":"2016-12-30","value":0.021604480129545914},{"time":"2017-12-30","value":0.022440257629567206},{"time":"2018-12-30","value":0.030335757057313943},{"time":"2019-12-30","value":0.013581967394430065},{"time":"2020-12-30","value":0.045881285725215035},{"time":"2021-12-30","value":0.08053293590583842},{"time":"2022-12-30","value":0.0691385933572569},{"time":"2023-12-30","value":0.08127029502372957}],"Assets":[{"time":"2014-12-30","value":7395900000},{"time":"2015-12-30","value":6501300000},{"time":"2016-12-30","value":7168400000},{"time":"2017-12-30","value":7971700000},{"time":"2018-12-30","value":7626400000},{"time":"2019-12-30","value":7759700000},{"time":"2020-12-30","value":8504200000},{"time":"2021-12-30","value":9182100000},{"time":"2022-12-30","value":10103700000},{"time":"2023-12-30","value":11421200000}],"Stockholders Equity":[{"time":"2014-12-30","value":3496900000},{"time":"2015-12-30","value":2883300000},{"time":"2016-12-30","value":2837200000},{"time":"2017-12-30","value":3095300000},{"time":"2018-12-30","value":2993500000},{"time":"2019-12-30","value":2907000000},{"time":"2020-12-30","value":3018000000},{"time":"2021-12-30","value":3443800000},{"time":"2022-12-30","value":3882600000},{"time":"2023-12-30","value":4656800000}],"ROE":[{"time":"2014-12-30","value":0.11558809231033201},{"time":"2015-12-30","value":0.0915617521589845},{"time":"2016-12-30","value":0.056428873537290286},{"time":"2017-12-30","value":0.06022033405485736},{"time":"2018-12-30","value":0.09477200601302822},{"time":"2019-12-30","value":0.04224286205710354},{"time":"2020-12-30","value":0.1390987408880053},{"time":"2021-12-30","value":0.2604680875776758},{"time":"2022-12-30","value":0.22528717869468912},{"time":"2023-12-30","value":0.2515246521216286}],"ROA":[{"time":"2014-12-30","value":0.08741329655620006},{"time":"2015-12-30","value":0.05554273760632489},{"time":"2016-12-30","value":0.04023212990346521},{"time":"2017-12-30","value":0.05059146731562904},{"time":"2018-12-30","value":0.0641193748033148},{"time":"2019-12-30","value":0.044859981700323466},{"time":"2020-12-30","value":0.07051809694033537},{"time":"2021-12-30","value":0.10906001894991342},{"time":"2022-12-30","value":0.12524124825558955},{"time":"2023-12-30","value":0.14888102826322977}]}
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. The company was founded in 1990 and is headquartered in Duluth, Georgia.
DCF
Discounted Cash Flow Valuation of Agco Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $802.4M | $889M | $979.2M | $1.072B | $1.167B | $1.263B | $1.359B | $1.453B | $1.545B | $1.632B | $1.713B | $17.13B |
| DCF | $773M | $740.4M | $705.1M | $667.4M | $628.1M | $587.5M | $546.3M | $504.9M | $463.8M | $423.5M | $4.235B | |
| Value | $10.28B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 25%
Earnings Stability 52%
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 3.5% | 2.2% | 2.2% | 3% | 1.4% | 4.6% | 8.1% | 6.9% | 8.1% | 7.9% |
| ROA | 5.6% | 4% | 5.1% | 6.4% | 4.5% | 7.1% | 11% | 13% | 15% | 12% |
| ROE | 9.2% | 5.6% | 6% | 9.5% | 4.2% | 14% | 26% | 23% | 25% | 23% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +5.35%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.3%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +9.38%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +2.01%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +16.89%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +4.16%.
Safety & Stabiliy
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 4.23 | 10.57 | 4.84 | 4.19 | 3.18 | 3.05 | 3.85 | 3.66 | 2.38 | 4.98 |
| Debt Equity | 0.46 | 0.63 | 0.58 | 0.55 | 0.46 | 0.63 | 0.44 | 0.42 | 0.30 | 0.84 |
| MIN | ||||||||||
| Graham Stability | - | - | 68% | 100% | 58% | 100% | 100% | 100% | 100% | 58% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 4.98.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.19.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.58.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 10% | 9% | 16% | 14% | 3.3% |
| Net Income | 33% | 33% | 41% | 34% | 13% |
| Stockholders Equity | 7.3% | 9.2% | 16% | 20% | 3.5% |
| FCF | 19% | 8.3% | -2.3% | 30% | -8.1% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +9.04%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +3.32%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +32.79%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +12.82%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +9.24%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +3.5%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +8.3%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -8.09%.