AGCO EBITDA vs. Operating Margin

AGCO Stock  USD 98.60  0.55  0.56%   
Considering AGCO's profitability and operating efficiency indicators, AGCO Corporation is yielding more profit at this time then in previous quarter. It has a moderate odds of reporting better profitability numbers in January. Profitability indicators assess AGCO's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
1.7 B
Current Value
1.8 B
Quarterly Volatility
477.2 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, AGCO's Days Sales Outstanding is very stable compared to the past year. As of the 11th of December 2024, EV To Sales is likely to grow to 0.75, while Price To Sales Ratio is likely to drop 0.42. At this time, AGCO's Interest Income is very stable compared to the past year. As of the 11th of December 2024, Net Income Per Share is likely to grow to 16.44, though Accumulated Other Comprehensive Income is likely to grow to (1.6 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.160.2621
Way Down
Pretty Stable
Net Profit Margin0.08530.0813
Sufficiently Up
Slightly volatile
Operating Profit Margin0.07030.118
Way Down
Slightly volatile
Pretax Profit Margin0.09720.0925
Sufficiently Up
Slightly volatile
Return On Assets0.110.1026
Notably Up
Slightly volatile
Return On Equity0.260.2516
Sufficiently Up
Slightly volatile
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'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
2.26
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 Operating Margin vs. EBITDA 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 number one stock in ebitda category among its peers. It also is number one stock in operating margin category among its peers . The ratio of EBITDA to Operating Margin for AGCO Corporation is about  34,987,654,321 . At this time, AGCO's EBITDA 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 Operating Margin vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

AGCO

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
1.7 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

AGCO

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

AGCO Operating Margin Comparison

AGCO is currently under evaluation in operating margin category among its peers.

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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.7 B-1.6 B
Operating Income1.7 B1.8 B
Income Before Tax1.3 B1.4 B
Total Other Income Expense Net-366.9 M-348.6 M
Net Income1.2 B1.2 B
Income Tax Expense230.4 M241.9 M
Net Income Applicable To Common SharesB1.1 B
Net Income From Continuing Ops1.2 B1.2 B
Non Operating Income Net Other-73 M-69.3 M
Interest Income64.2 M67.4 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.
Pair CorrelationCorrelation Matching

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.

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Healthcare
Healthcare Theme
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 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 Healthcare Theme or any other thematic opportunities.
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When determining whether AGCO offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AGCO's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Agco Corporation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Agco Corporation Stock:
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You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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.
Potential AGCO investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although AGCO investors may work on each financial statement separately, they are all related. The changes in AGCO's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AGCO's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.