AGCO Current Valuation vs. Revenue
| AGCO Stock | USD 97.12 0.35 0.36% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.16 | 0.2621 |
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| Net Profit Margin | 0.0853 | 0.0813 |
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| Operating Profit Margin | 0.0703 | 0.118 |
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| Pretax Profit Margin | 0.0972 | 0.0925 |
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| Return On Assets | 0.11 | 0.1026 |
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| Return On Equity | 0.26 | 0.2516 |
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For AGCO profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AGCO to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AGCO Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AGCO's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AGCO Corporation over time as well as its relative position and ranking within its peers.
AGCO |
AGCO's Revenue Breakdown by Earning Segment
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Is Agricultural & Farm Machinery space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AGCO. If investors know AGCO will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AGCO listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.89) | Dividend Share 1.16 | Earnings Share 2.27 | Revenue Per Share 168.626 | Quarterly Revenue Growth (0.25) |
The market value of AGCO is measured differently than its book value, which is the value of AGCO that is recorded on the company's balance sheet. Investors also form their own opinion of AGCO's value that differs from its market value or its book value, called intrinsic value, which is AGCO's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AGCO's market value can be influenced by many factors that don't directly affect AGCO's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AGCO's value and its price as these two are different measures arrived at by different means. Investors typically determine if AGCO is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AGCO's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
AGCO Revenue vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AGCO's current stock value. Our valuation model uses many indicators to compare AGCO value to that of its competitors to determine the firm's financial worth. AGCO Corporation is rated fifth in current valuation category among its peers. It also is rated fifth in revenue category among its peers totaling about 1.32 of Revenue per Current Valuation. At this time, AGCO's Total Revenue is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AGCO's earnings, one of the primary drivers of an investment's value.AGCO's Earnings Breakdown by Geography
AGCO Current Valuation vs. Competition
AGCO Corporation is rated fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 525.06 Billion. AGCO holds roughly 10.89 Billion in current valuation claiming about 2.07% of equities under Industrials industry.
AGCO Revenue vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
AGCO |
| = | 10.89 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
AGCO |
| = | 14.41 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
AGCO Revenue vs Competition
AGCO Corporation is rated fifth in revenue category among its peers. Market size based on revenue of Industrials industry is presently estimated at about 207.47 Billion. AGCO holds roughly 14.41 Billion in revenue claiming about 7% of equities under Industrials industry.
AGCO Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AGCO, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AGCO will eventually generate negative long term returns. The profitability progress is the general direction of AGCO's change in net profit over the period of time. It can combine multiple indicators of AGCO, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1.7 B | -1.6 B | |
| Operating Income | 1.7 B | 1.8 B | |
| Income Before Tax | 1.3 B | 1.4 B | |
| Total Other Income Expense Net | -366.9 M | -348.6 M | |
| Net Income | 1.2 B | 1.2 B | |
| Income Tax Expense | 230.4 M | 241.9 M | |
| Net Income Applicable To Common Shares | 1 B | 1.1 B | |
| Net Income From Continuing Ops | 1.2 B | 1.2 B | |
| Non Operating Income Net Other | -73 M | -69.3 M | |
| Interest Income | 64.2 M | 67.4 M | |
| Net Interest Income | -16.2 M | -17 M | |
| Change To Netincome | -42 M | -39.9 M | |
| Net Income Per Share | 15.66 | 16.44 | |
| Income Quality | 0.94 | 0.89 | |
| Net Income Per E B T | 0.88 | 0.54 |
AGCO Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AGCO. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AGCO position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AGCO's important profitability drivers and their relationship over time.
Use AGCO in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AGCO position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AGCO will appreciate offsetting losses from the drop in the long position's value.AGCO Pair Trading
AGCO Corporation Pair Trading Analysis
The ability to find closely correlated positions to AGCO could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AGCO when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AGCO - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AGCO Corporation to buy it.
The correlation of AGCO is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AGCO moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AGCO moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AGCO can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your AGCO position
In addition to having AGCO in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Millennials Best Thematic Idea Now
Millennials Best
Companies or funds that provide products or services that appeal to the generation of millennials and that are expected to experience growth in the next 5 years. The millennial generation usually refers to the demographic population that were born between 1980 to 2000. The Millennials Best theme has 77 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Millennials Best Theme or any other thematic opportunities.
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Check out Trending Equities. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project AGCO's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AGCO at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AGCO's income statement, its balance sheet, and the statement of cash flows.