AGCO Corp (AGCO) stock analysis

P/E above its 5-year median

AGCO's P/E of 29.6 is above its own 5-year median of 11.3.

P/E above the industry

AGCO's P/E of 29.6 is above the Industrial and Commercial Machinery and Computer Equipment median of 27.5.

EV/EBITDA above its 5-year median

AGCO's EV/EBITDA of 17.9 is above its 5-year median of 10.7.

P/B below the industry

AGCO's price-to-book of 1.95 is below the Industrial and Commercial Machinery and Computer Equipment median of 2.71.

Trading above fair value

The share price of $114.79 is above our fair value estimate of $83.51.

Margin of safety under 20%

The price is 37.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -6.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -25.6% over the last twelve months, against a 5-year average of 11.2% a year.

Growing slower than the industry

Revenue grew 0.9% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.

Guidance lowered

AGCO lowered its 2026 net sales outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 25.0% over the last twelve months, against 25.0% a year earlier.

Return on equity under 15%

Return on equity was 6.5% over the last twelve months and averaged 17.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

AGCO's return on equity of 6.5% is below the Industrial and Commercial Machinery and Computer Equipment median of 7.0%.

Earnings grew over 5 years

Net income grew 11.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.8% over the last twelve months, against a 5-year average of 5.4%.

Net margin below the industry

AGCO's net margin of 2.8% is below the Industrial and Commercial Machinery and Computer Equipment median of 4.8%.

High debt

Debt is 65.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 54.2% five years ago to 65.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 20.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.32 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AGCO paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% 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; AGCO yields 1.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 30.2% of net income.

Covered by free cash flow

Dividends take 28.6% of free cash flow.