AGCO Corporation (AGCO) Stock Guide

June 12, 2020
60

Before we start: if you're looking for AGCO stock price, you can quickly find it out by visiting Finny and typing "AGCO quote". If you're looking for a quick scoop on AGCO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AGCO". You'll get all this info in one place. Or you can just type "AGCO news" to get the latest stock news.

Looking to buy or sell AGCO Corporation (AGCO)? Interested in getting the full scoop on AGCO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AGCO stock guide, we'll address key questions about AGCO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AGCO earnings?
2. When is AGCO earnings date?
3. What is AGCO dividend?
4. What is AGCO dividend yield?
5. What is AGCO stock forecast (i.e., prediction)?
6. AGCO buy or sell? What is AGCO Finny Score?
7. What are the reasons to buy AGCO? Why should I buy AGCO stock?
8. What are the reasons to sell AGCO? Why should I sell AGCO stock?
9. What are AGCO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AGCO earnings?

AGCO trailing 12-month earnings per share (EPS) is $1.63.

2. When is AGCO earnings date?

AGCO earnings date is July 28, 2020.

3. What is AGCO dividend?

AGCO forward dividend is $0.64.

4. What is AGCO dividend yield?

AGCO forward dividend yield is 1.4%.

Analyst Predictions

5. What is AGCO stock forecast (i.e., prediction)?

Based on AGCO analyst price targets, AGCO stock forecast is $60.93 (for a year from now). That means the average analyst price target for AGCO stock is $60.93. The prediction is based on 19 analyst estimates.

The low price target for AGCO is $44.00, while the high price target is $87.00.

AGCO analyst rating is Hold.

Analysis

6. AGCO buy or sell? What is AGCO Finny Score?

Our quantitative analysis shows 6 reasons to buy and 4 reasons to sell AGCO, resulting in Finny Score of 60.

7. What are the reasons to buy AGCO? Why should I buy AGCO stock?

Here are the reasons to buy AGCO stock:

  • Although Agco's market share trails Deere and CNH by a substantial margin in North America, it holds 50% of the Brazilian market.
  • As Agco has refocused its attention on internal profitability and working capital management, returns on invested capital have improved to more than 13% during the past five years versus only 10% over the prior five years.
  • The consolidation of low-horsepower tractor manufacturing in China is expected to generate $50 million-$70 million of annual savings over the long term.
  • AGCO profitability is improving. The YoY profit margin change was 0.81 percentage points. See AGCO profitability chart.
  • AGCO forward dividend yield is 1.40%, higher than the industry (0.77%) and sector (0.50%) forward dividend yields. See AGCO forward dividend chart.
  • AGCO forward P/E ratio is 11.01, which is low compared to its industry peers’ P/E ratios. See AGCO forward P/E ratio chart.
  • AGCO average analyst price target ($60.93) is above its current price ($54.42). See AGCO price target chart.
  • AGCO cash to debt ratio is 0.20, higher than the average industry (0.17) and sector (0.12) cash to debt ratio. See AGCO cash to debt chart.
  • AGCO Enterprise Value/Revenue multiple is 0.61, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See AGCO Enterprise Value/Revenue chart.

8. What are the reasons to sell AGCO? Why should I sell AGCO stock?

Let's look at the reasons to sell AGCO stock (i.e., the bear case):

  • New Western European engines may face difficulty getting traction in Eastern Europe because of more stringent fuel requirements; even as current economic headwinds abate, Western Europe could face used-equipment oversupply.
  • Agco is working to reduce its North American dealer footprint to create more exclusive arrangements, but the process may take several years.
  • Agco's R&D spending has increased faster than Deere's and CNH's during the past five years but still trails as a percentage of sales. Agco's R&D cost growth may continue to outpace revenue gains as it fights to be relevant.
  • AGCO quarterly revenue growth was -3.40%, lower than the industry and sector average revenue growth (1.92% and 1.65%, respectively). See AGCO revenue growth chart.
  • AGCO Price/Book ratio is 1.30, which is high compared to its industry peers’ P/B ratios. See AGCO forward Price/Book ratio chart.
  • AGCO PEG ratio (P/E adjusted for growth) is 4.35, which is high compared to its industry peers’ PEG ratios. See AGCO PEG chart.
  • AGCO short interest (days to cover the shorts) ratio is 2.37. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AGCO short interest ratio chart.

Key Stats

9. What are AGCO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AGCO:

Metrics AGCO
Price $54.62
Average Price Target / Upside $60.93 / 11.55%
Average Analyst Rating Hold
Forward Dividend Yield 1.40%
Industry Farm & Construction Equipment
Sector Industrials
Number of Employees 21,200
Market Cap $3.42B
Forward P/E Ratio 11.01
Price/Book Ratio 0.38
Revenue (TTM) $8.97B
YoY Quarterly Revenue Growth -3.40%
Profit Margin 1.39%

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