AGCO -- The Essentials

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.