A

Don't Take a Position in A Before Reading This!

A strong performer from today's afternoon trading session is Agilent Technologies, whose shares rose 2.3% to $134.9 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.

Agilent Technologies's Valuation Is in Line With Its Sector Averages:

Agilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 25.4 and an average price to book (P/B) ratio of 3.23. In contrast, Agilent Technologies has a trailing 12 month P/E ratio of 32.0 and a P/B ratio of 6.33.

Agilent Technologies's PEG ratio is 5.04, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

Growing Revenues and Healthy Leverage Levels:

2018 2019 2020 2021 2022 2023
Revenue (M) $4,914 $5,163 $5,339 $6,319 $6,848 $6,833
Operating Margins 18% 18% 16% 21% 24% 20%
Net Margins 6% 21% 13% 19% 18% 18%
Net Income (M) $316 $1,071 $719 $1,210 $1,254 $1,240
Net Interest Expense (M) $75 $74 $78 $81 $84 $95
Depreciation & Amort. (M) $210 $238 $308 $321 $317 $271
Diluted Shares (M) 325 318 312 307 300 296
Earnings Per Share $0.97 $3.37 $2.3 $3.94 $4.18 $4.19
EPS Growth n/a 247.42% -31.75% 71.3% 6.09% 0.24%
Avg. Price $64.69 $73.1 $90.72 $142.77 $128.75 $134.9
P/E Ratio 66.01 21.44 38.94 35.87 30.73 31.97
Free Cash Flow (M) $910 $866 $802 $1,297 $1,021 $1,474
CAPEX (M) $177 $155 $119 $188 $291 $298
EV / EBITDA 18.09 20.1 24.92 26.6 20.59 25.09
Total Debt (M) $1,792 $2,402 $2,359 $2,729 $2,769 $2,735
Net Debt / EBITDA -0.41 0.87 0.8 0.75 0.89 0.71
Current Ratio 3.33 1.53 2.33 2.22 2.03 2.61

Agilent Technologies has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and generally positive cash flows. The company also benefits from an excellent current ratio of 2.61, decent operating margins with a stable trend, and healthy leverage levels.

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.

IN FOCUS