Agco reported third-quarter earnings largely in line with our expectations. Sales increased to $3.4 billion in the quarter, up 10.7% year on year. Agco pointed to solid demand for large ag equipment as a key driver to top-line growth. Adjusted operating margins expanded 190 basis points to 12.6%, largely due to strong price realization and favorable sales mix.
Higher crop prices could increase farmers’ profitability, allowing them to purchase new agriculture equipment, which substantially boosts Agco's revenue growth.
China could pull back on agriculture imports, weakening global demand for crops. The fallout would likely lead to lower crop prices, largely due to higher supplies, pushing farmers to delay equipment purchases.
|
Metric
|
AGCO
|
DE
|
CNHI
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.00 | 10.77 | 6.25 |
Price/Book Value | 1.95 | 4.81 | 1.78 |
Price/Sales | 0.59 | 1.77 | 0.58 |
Price/Cash Flow | 6.37 | 8.96 | 5.00 |
|
Metric
|
AGCO
|
DE
|
CNHI
|
|---|---|---|---|
Quick Ratio | 0.56 | 1.74 | 4.58 |
Current Ratio | 1.62 | 1.98 | 5.86 |
Interest Coverage | 30.24 | 7.35 | 3.41 |
|
Metric
|
AGCO
|
DE
|
CNHI
|
|---|---|---|---|
Return on Assets (Normalized) | 11.38% | 10.63% | 5.56% |
Return on Equity (Normalized) | 30.39% | 47.11% | 31.06% |
Return on Invested Capital (Normalized) | 20.10% | 15.03% | 10.11% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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