Agilent Technologies, Inc. (A) stock analysis

P/E above its 5-year median

Agilent Technologies's P/E of 34.9 is above its own 5-year median of 30.8.

P/E below the industry

Agilent Technologies's P/E of 34.9 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA above its 5-year median

Agilent Technologies's EV/EBITDA of 25.4 is above its 5-year median of 21.7.

P/B above the industry

Agilent Technologies's price-to-book of 6.78 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading above fair value

The share price of $176.95 is above our fair value estimate of $144.17.

Margin of safety under 20%

The price is 22.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 18.0% over the last twelve months, against a 5-year average of 12.6% a year.

Growing faster than the industry

Revenue grew 8.6% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance raised

Agilent Technologies raised its Fiscal year 2026 revenue outlook on Aug 26, 2026.

Gross margin improving

Gross margin was 53.8% over the last twelve months, against 52.6% a year earlier.

Return on equity over 15%

Return on equity was 21.0% over the last twelve months and averaged 22.4% over five years.

Return on capital over 10%

Return on invested capital was 26.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Agilent Technologies's return on equity of 21.0% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 12.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.5% over the last twelve months, against a 5-year average of 18.8%.

Net margin above the industry

Agilent Technologies's net margin of 19.5% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

Low debt

Debt is 4.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 48.4% five years ago to 4.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 529% of total debt.

Interest well covered

Operating income covers interest expense 15.5 times.

Short-term assets cover short-term debts

Current assets are 2.05 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Agilent Technologies paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Agilent Technologies yields 0.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 19.9% of net income.

Covered by free cash flow

Dividends take 22.6% of free cash flow.