AGCO CORP /DE (AGCO) Stock Analysis
AGCO CORP /DE (AGCO) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
AGCO CORP /DE faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 9.7% | Near cost of capital |
| FCF Margin | 7.3% | Healthy cash flow |
| Debt/Equity | 0.6x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore AGCO CORP /DE: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: AGCO CORP /DE earns 9.7% ROIC, Top 50% in Industrials
AGCO CORP /DE's trailing-twelve-month ROIC of 9.7% ranks Top 50% in Industrials companies (sector median: 7.4%), driven by NOPAT margin of 6.7% combined with asset turnover of 0.8x. Source: 10-Q filed 2025-10-31. Gross margin of 25.5% with operating margin at 5.9% reflects a competitive pricing environment.
| Metric | AGCO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Adequate | Above sector median of 7.4% |
| Return on Equity (ROE) | 17.6% | Good | Efficient use of shareholder equity |
| Gross Margin | 25.5% | Adequate | Competitive pricing environment |
| Operating Margin | 5.9% | Adequate | Moderate operational efficiency |
Cash Flow: AGCO CORP /DE generates $740.2M FCF at 7.3% margin, positive NaN/8 quarters
AGCO CORP /DE generated $740.2M in free cash flow (TTM), a 7.3% FCF margin, a margin that ranks Top 50% in Industrials. Operating cash flow exceeds net income by 1.4x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | AGCO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 7.3% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $740.2M | Good | Positive cash generation |
| OCF/Net Income | 1.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AGCO CORP /DE at 0.6x leverage
AGCO CORP /DE's debt-to-equity ratio of 0.6x reflects moderate leverage. Total debt of $2.4B offset by $861.8M in cash. Source: 10-Q filed 2025-10-31.
| Metric | AGCO | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.6x | Good | Moderate leverage |
| Net Cash Position | $-1.6B | Warning | Net debt position |
Valuation: AGCO CORP /DE trades at 10.7x earnings
AGCO CORP /DE trades at a P/E of 10.7x. Free cash flow yield of 9.5% offers attractive cash returns relative to price.
| Metric | AGCO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 10.7x | Adequate | Reasonable valuation |
| EV/Sales | 1.0x | Excellent | Attractive revenue multiple |
| FCF Yield | 9.5% | Excellent | Attractive cash return |
| Dividend Yield | 1.1% | Adequate | Growth focus over income |
Capital Allocation: AGCO CORP /DE returns 1.1% shareholder yield
AGCO CORP /DE's total shareholder yield is 1.1% (dividends 1.1% + buybacks). Source: 10-Q filed 2025-10-31.
| Metric | AGCO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.1% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $86.5M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Top 50% | 1.3x above |
| Free Cash Flow Margin | 7.3% | Top 50% | 1.6x above |
| Gross Margin | 25.5% | Bottom 50% | 0.8x below |
| Operating Margin | 5.9% | Bottom 50% | 0.8x below |
| Return on Equity (ROE) | 17.6% | Top 50% | 2.0x above |
| P/E Ratio | 10.7x | N/A | - |
Financial Scorecard
| Metric | AGCO | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 9.7% | Adequate | Top 50% of sector (median: 7.4%) |
| Free Cash Flow Margin | 7.3% | Adequate | Top 50% of sector (median: 4.6%) |
| Gross Margin | 25.5% | Adequate | Bottom 50% of sector (median: 33.1%) |
| Debt to Equity Ratio | 57.1% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 10.7x | Adequate | Attractively valued |
| Free Cash Flow Yield | 9.5% | Excellent | High cash return |
Frequently Asked Questions
Q: What is AGCO CORP /DE's Return on Invested Capital (ROIC)?
AGCO CORP /DE (AGCO) has a trailing twelve-month Return on Invested Capital (ROIC) of 9.7%. This compares above the sector median of 7.4%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is AGCO CORP /DE's Free Cash Flow Margin?
AGCO CORP /DE (AGCO) has a free cash flow margin of 7.3%, generating $740.2 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is AGCO CORP /DE stock overvalued or undervalued?
AGCO CORP /DE (AGCO) trades at a P/E ratio of 10.7x, which is above the sector median of N/A. The EV/Sales multiple is 1.0x. Free cash flow yield is 9.5%, which represents an attractive cash return to investors.
Q: Does AGCO CORP /DE pay a dividend?
AGCO CORP /DE (AGCO) currently pays a dividend yield of 1.1%. Including share buybacks, the total shareholder yield is 1.1%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does AGCO CORP /DE have?
AGCO CORP /DE (AGCO) has a debt-to-equity ratio of 0.6x with total debt of $2.4 billion. Net debt position is $1.6 billion.
Q: What is AGCO CORP /DE's revenue and earnings growth?
AGCO CORP /DE (AGCO) grew revenue by 14.3% year-over-year. Solid growth above 10% suggests healthy business momentum.
Q: Is AGCO CORP /DE buying back stock?
AGCO CORP /DE (AGCO) repurchased $250.0 million of stock over the trailing twelve months. This represents a buyback yield of 3.2%.
Q: How does AGCO CORP /DE compare to competitors in Industrials?
Compared to other companies in Industrials, AGCO CORP /DE (AGCO) shows: ROIC of 9.7% is above the sector median of 7.4% (Top 42%). FCF margin of 7.3% exceeds the sector median of 4.6% (Top 39% of sector). Gross margin at 25.5% is 7.6 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with AGCO CORP /DE?
AGCO CORP /DE (AGCO) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.