AGCO Revenue vs. Return On Asset
| AGJ Stock | EUR 95.48 1.46 1.55% |
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.
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AGCO Return On Asset vs. Revenue 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 the top company in revenue category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Revenue to Return On Asset for AGCO Corporation is about 149,367,178,276 . 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 Revenue vs. Competition
AGCO Corporation is the top company in revenue category among its peers. Market size based on revenue of Farm & Construction Equipment industry is presently estimated at about 17.62 Billion. AGCO totals roughly 12.65 Billion in revenue claiming about 72% of equities under Farm & Construction Equipment industry.
AGCO Return On Asset vs. Revenue
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 |
| = | 12.65 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0847 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
AGCO Return On Asset Comparison
AGCO is currently under evaluation in return on asset 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.
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia. AGCO CORP operates under Farm Construction Equipment classification in Germany and is traded on Frankfurt Stock Exchange. It employs 21200 people.
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 Restaurants Thematic Idea Now
Restaurants
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 37 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 Restaurants Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in AGCO Stock
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:Check out Trending Equities. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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.