Now trading at a price of $138.38, AGCO has moved -1.1% so far today on a volume of 346,166, compared to its average of 607,950. In contrast, the S&P 500 index moved 0.9%.
AGCO shares moved 13.0% over the last 52 weeks, with a high of $150.28 and a low of $88.55. During this time, the stock outperformed the S&P 500 index by 30.1%. As of January 2022, the company's 50-day average price is $130.0. AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The mid-cap Industrials company has 23,300 full time employees and is based in Duluth, GA. AGCO has returned a 0.6% dividend yield over the last 12 months.
The Company Has a Striking EPS Growth Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $9,041 | $9,150 | $11,138 |
| Revenue Growth | n/a | 1.2% | 21.73% |
| Gross Margins | 22.0% | 22.5% | 23.1% |
| Gross Margins Growth | n/a | 2.27% | 2.67% |
| Operating Margins | 6.0% | 7.2% | 9.1% |
| Operating Margins Growth | n/a | 20.0% | 26.39% |
| Earnings Per Share | $1.63 | $5.65 | $11.85 |
| EPS Growth | n/a | 246.63% | 109.73% |
| Free Cash Flow (MM) | $422 | $627 | $390 |
| FCF Growth | n/a | 48.31% | -37.7% |
| Capital Expenditures (MM) | -$273 | -$270 | -$270 |
| Net Debt / EBITDA | 1.22 | 0.55 | 0.49 |
AGCO Is Undervalued at Today's Prices:
Compared to the Industrials sector's average of 21.46, AGCO has a trailing twelve month P/E ratio of 12.4 and, according to its EPS guidance of 13.36, an expected P/E ratio of 10.4. AGCO's PEG ratio is 0.1 based on its 123.33% average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
AGCO is undervalued in terms of its assets because its P/B ratio is 2.9 compared to its sector average of 3.7. The company's shares are currently trading 68.1% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 6.38 * 47.192) = $82.31
AGCO Benefits From Positive Market Indicators:
16 analysts are following AGCO and have set target prices ranging from $104 to $185 per share. On average, they have given the company a rating of buy. At the current price of $138.38, AGCO is trading -7.09% away from its average analyst target price of $148.94 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 1.3% of the company's shares are tied to short positions. Institutions own 83.4% of AGCO's shares, while the insider ownership rate stands at 16.98%. The biggest shareholder is Blackrock Inc. with a 9% stake in the company worth approximately $946,975,057.
