Agco (AGCO) AI Stock Analysis

• Market Cap: $6.25B
• Dividend Yield: 1.38%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.04
• Revenue Growth: -19.08%
• EPS Growth: -136.41%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 74
• Industry: Agricultural - Machinery
• EPS (TTM): -5.70
• Shares Outstanding: 74,582,030
• 10 Day Avg. Volume: 880,588
• 30 Day Avg. Volume: 1,106,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.60
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 2.20
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $96.71
• Price Target Upside: 15.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

AGCO faces significant challenges impacting its overall stock score. While the company demonstrates operational resilience and strategic focus in precision agriculture, declining sales, profitability issues, and bearish technical indicators present concerns. Valuation metrics further highlight financial struggles, suggesting caution for investors despite some positive strategic developments.

Positive Factors

Growth Strategy

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

Market Expansion

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

Negative Factors

Earnings Forecast

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

Market Challenges

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 makes money primarily through the sale of its agricultural equipment and related parts. The company's revenue streams are driven by the sales of high-performance machinery such as tractors and combines, which are essential for modern farming operations. AGCO also generates substantial income from aftermarket parts and service solutions, providing ongoing support and maintenance to its equipment users. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its market reach and product offerings. AGCO's focus on innovation and technology solutions, including precision agriculture, further contributes to its revenue by offering advanced farming solutions that improve yield and operational efficiency for farmers.

Agco Financial Statement Overview

Summary

AGCO's financial performance reveals challenges across key statements. The income statement reports declining revenue, negative EBIT, and net income indicating operational struggles. The balance sheet remains stable with moderate debt levels but shows increased liabilities. Cash flow has decreased, highlighting potential liquidity issues. Overall, the company faces significant profitability and operational hurdles.

Income Statement

The income statement shows recent challenges, with a notable decrease in revenue in 2024 compared to 2023. The gross profit margin declined, and the company reported a negative EBIT and net income, indicating operational difficulties. While historical data reflects some growth, the latest results highlight significant profitability concerns.

Balance Sheet

AGCO's balance sheet is stable with a moderate debt-to-equity ratio, although it increased slightly in the latest year. The equity ratio remains healthy, suggesting a robust capital structure. However, the reduction in stockholders' equity and increased liabilities could present future leverage risks.

Cash Flow

Cash flow analysis shows a decrease in free cash flow in the latest period, driven by lower operating cash flow. The free cash flow to net income ratio reflects some pressure on cash conversion. Despite previous growth in cash flow, current figures indicate potential liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.66B	14.41B	12.65B	11.14B	9.15B
	Gross Profit
2.90B	3.78B	3.00B	2.57B	2.06B
	EBIT
-122.10M	1.70B	1.27B	1.00B	599.70M
	EBITDA
57.90M	1.69B	1.57B	1.30B	904.10M
	Net Income Common Stockholders
-424.80M	1.17B	889.60M	897.00M	427.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
612.70M	595.50M	789.50M	889.10M	1.12B
	Total Assets
11.19B	11.42B	10.10B	9.18B	8.50B
	Total Debt
127.50M	1.53B	1.59B	1.62B	1.74B
	Net Debt
-485.20M	937.00M	796.70M	730.50M	623.20M
	Total Liabilities
7.15B	6.76B	6.22B	5.74B	5.49B
	Stockholders Equity
3.74B	4.66B	3.88B	3.42B	2.98B
Cash Flow		Free Cash Flow
296.60M	585.00M	449.90M	413.10M	626.60M
	Operating Cash Flow
689.90M	1.10B	838.20M	682.90M	896.50M
	Investing Cash Flow
-1.65B	-545.70M	-496.80M	-311.10M	-241.70M
	Financing Cash Flow
1.05B	-671.70M	-407.00M	-539.50M	22.70M

Agco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGCO, the sentiment is Neutral. The current price of 83.8 is below the 20-day moving average (MA) of 84.39, below the 50-day MA of 91.62, and below the 200-day MA of 94.37, indicating a bearish trend. The MACD of -2.67 indicates Negative momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGCO.

Agco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	77 Outperform	$2.38B	7.25	19.13%	1.89%	-0.47%	-34.74%
CAT	74 Outperform	$146.46B	13.90	55.36%	1.80%	-3.36%	9.59%
OSK	71 Outperform	$5.56B	8.31	17.34%	2.13%	11.36%	13.78%
DE	70 Outperform	$124.66B	20.36	27.91%	1.34%	-20.93%	-34.33%
CNH	65 Neutral	$14.53B	11.77	16.66%	4.04%	-19.64%	-41.23%
Sector *	63 Neutral	$4.27B	11.36	5.38%	214.64%	4.14%	-9.01%
AGCO	50 Neutral	$6.25B	46.40	-10.11%	1.38%	-19.08%	-136.41%

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.

Spark’s Take on AGCO Stock

According to Spark, TipRanks’ AI Analyst, AGCO is a Neutral.

AGCO faces significant challenges impacting its overall stock score. While the company demonstrates operational resilience and strategic focus in precision agriculture, declining sales, profitability issues, and bearish technical indicators present concerns. Valuation metrics further highlight financial struggles, suggesting caution for investors despite some positive strategic developments.

To see Spark’s full report on AGCO stock, click here.

AGCO Appoints Zhanna Golodryga to Board of Directors

On February 12, 2025, AGCO Corporation announced the appointment of Zhanna Golodryga to its Board of Directors, effective April 1, 2025. Golodryga is an Executive Vice President at Phillips 66, with significant experience in digital transformation and sustainability. Her expertise is expected to enhance AGCO’s strategic priorities in smart farming solutions and technology offerings. This move reflects AGCO’s commitment to advancing its innovation and sustainability goals, potentially impacting its market positioning and operations positively.