Agco (AGCO) AI Stock Analysis

• Market Cap: $7.50B
• Dividend Yield: 1.15%
• Average Volume (3M): 712.80K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.17
• Revenue Growth: -23.02%
• EPS Growth: -152.78%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Agricultural - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 74,586,790
• 10 Day Avg. Volume: 594,514
• 30 Day Avg. Volume: 712,798
• PEG Ratio: -138.75
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $102.88
• Price Target Upside: 2.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 55 Neutral
• Price Target: ―

AGCO's overall stock score reflects mixed financial performance, with significant pressure from declining sales and profitability challenges. Despite strong cash flow improvements and positive corporate events, these factors are overshadowed by negative earnings and valuation metrics, leading to a moderate overall score.

Positive Factors

Growth and Expansion

AGCO plans to achieve long-term growth through autonomous farm capabilities and a full range of retrofit and OEM sales.

Market Share and Product Development

AGCO's management expects market share growth from Fendt in North and South America, as well as from Trimble PTx and Parts.

Trade and Market Conditions

A combination of mitigation actions and likely easing of tariff rates should minimize the impacts of tariffs on AGCO over time.

Negative Factors

Earnings and Financial Performance

AGCO is guiding to a very weak and well-below-consensus Q1 forecast with break-even EPS.

Inventory and Market Challenges

AGCO is still dealing with above-target inventory levels, particularly in North and South America.

Market Conditions and Demand

AGCO expects high horsepower equipment in North America to decline by approximately 25%, indicating continued market pressure.

Agco Business Overview & Revenue Model

Company Description

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. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

How the Company Makes Money

AGCO generates revenue primarily through the sale of its agricultural equipment and related replacement parts. The company's revenue streams are categorized into the following segments: tractors, combines, hay and forage equipment, implements, grain storage and protein production systems, and precision agriculture technology solutions. AGCO also benefits from its extensive dealer network and after-sales services, which enhance customer loyalty and retention. Additionally, strategic partnerships and collaborations with technology providers and other industry stakeholders play a crucial role in expanding AGCO's market reach and technological capabilities, contributing to its overall revenue growth.

Agco Financial Statement Overview

Summary

AGCO's financial performance is mixed. The income statement shows declining revenue and net losses, impacting profitability. The balance sheet is stable with low leverage but negative returns. Cash flow is moderately strong, yet underlying profitability issues persist.

Income Statement

The income statement shows declining revenue and profitability. Gross Profit Margin is 24.3% for TTM, indicating a reasonable cost structure. However, the Net Profit Margin is negative due to significant net losses in recent periods. Revenue has decreased from 2023 to TTM, impacting growth metrics negatively.

Balance Sheet

The balance sheet reflects moderate financial stability. The Debt-to-Equity Ratio for TTM is low at 0.04, suggesting manageable leverage. However, the Return on Equity is negative due to net losses, which affects profitability metrics. The Equity Ratio is 33.2%, showing a sound capital structure.

Cash Flow

Cash flow analysis indicates moderate results. Free Cash Flow has grown compared to prior periods, but Operating Cash Flow to Net Income is high due to negative net income, hinting at potential underlying operational challenges. Free Cash Flow to Net Income is favorable, reflecting efficient cash generation relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.78B	11.66B	14.41B	12.65B	11.14B	9.15B
	Gross Profit
2.62B	2.90B	3.78B	3.00B	2.57B	2.06B
	EBIT
186.90M	-122.10M	1.70B	1.27B	1.00B	599.70M
	EBITDA
-259.10M	58.60M	1.69B	1.57B	1.30B	904.10M
	Net Income Common Stockholders
-582.30M	-424.80M	1.17B	889.60M	897.00M	427.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
562.60M	612.70M	595.50M	789.50M	889.10M	1.12B
	Total Assets
11.48B	11.19B	11.42B	10.10B	9.18B	8.50B
	Total Debt
3.07B	2.78B	1.53B	1.59B	1.62B	1.74B
	Net Debt
2.51B	2.16B	937.00M	796.70M	730.50M	623.20M
	Total Liabilities
7.37B	7.15B	6.76B	6.22B	5.74B	5.49B
	Stockholders Equity
3.81B	3.74B	4.66B	3.88B	3.42B	2.98B
Cash Flow		Free Cash Flow
501.20M	296.60M	585.00M	449.90M	413.10M	626.60M
	Operating Cash Flow
847.70M	689.90M	1.10B	838.20M	682.90M	896.50M
	Investing Cash Flow
-1.61B	-1.65B	-545.70M	-496.80M	-311.10M	-241.70M
	Financing Cash Flow
-1.09B	1.05B	-671.70M	-407.00M	-539.50M	22.70M

Agco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGCO, the sentiment is Positive. The current price of 100.59 is below the 20-day moving average (MA) of 101.96, above the 50-day MA of 93.93, and above the 200-day MA of 95.29, indicating a neutral trend. The MACD of 1.32 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 62.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGCO.

Agco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	78 Outperform	$167.93B	17.40	55.67%	1.58%	-5.58%	-7.37%
OSK	77 Outperform	$7.14B	11.86	15.24%	1.84%	5.95%	-10.59%
TEX	74 Outperform	$3.02B	12.54	13.85%	1.48%	-2.78%	-51.72%
DE	72 Outperform	$138.01B	24.65	24.07%	1.27%	-22.26%	-37.83%
CNH	66 Neutral	$15.71B	15.13	13.26%	1.99%	-21.99%	-52.11%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
AGCO	55 Neutral	$7.50B	46.40	-13.60%	1.15%	-23.02%	-152.78%

Agco Corporate Events

AGCO Completes Sale of Grain & Protein Business

On November 1, 2024, AGCO Corporation and its subsidiary Massey Ferguson Corp. completed the sale of the majority of its Grain & Protein business to A-AG Holdco Limited, an affiliate of American Industrial Partners. This divestiture involved brands like GSI, Automated Production, Cumberland, Cimbria, and Tecno. The financial results of the divested business were recast to maintain comparability across AGCO’s segments, impacting the company’s financial statements for 2024 and 2023. This strategic move is likely to influence AGCO’s operational focus and financial reporting, potentially affecting stakeholders and the company’s market positioning.