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Is Agilent Technologies (USA Stocks:A) ripping up investors?

August 2, 2023  By Vlad Skutelnik
Macroaxis Story
Agilent Technologies (A) is a leading player in the Healthcare Equipment & Supplies industry, with a focus on Pharmaceuticals, Biotechnology & Life Sciences. The company's strong product portfolio is one of the key factors driving its financial performance. It has an impressive operating margin of 25.11%, which is a testament to its efficient operations and strong pricing power. Agilent's gross profit stands at a staggering $3.7 billion, indicating the company's ability to generate substantial income from its product sales. The company's stock is currently trading at an open price of $122.48, and with a PE ratio of 28.19, it suggests that the market has high expectations for Agilent's future earnings growth. The company's earnings per share is $4.53, showing a strong profitability on a per-share basis. Given these data points, Agilent Technologies offers promising investment opportunities for those interested in the healthcare sector.

A deeper look at Agilent

The company, Agilent Technologies, reported an annual revenue of $6.85 billion. The net income attributable to common stockholders was $1.25 billion. The gross profit, before accounting for taxes, overhead, and interest, stood at $3.72 billion.
Published over a year ago
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Reviewed by Rifka Kats

Agilent Technologies (USA Stocks:A), a prominent player in the Healthcare sector, specifically in the Life Sciences Tools & Services, has been showcasing promising investment opportunities. With an impressive Return On Equity of 24.7822 and Return On Assets of 0.104, the company's financial health appears robust. The company's valuation market value stands at 127.71, closely matching its valuation hype value. However, the valuation real value is slightly higher at 134.58, indicating potential undervaluation. The company has also shown a quarterly earnings growth of 0.121, and the EPS estimate for the current year is 5.5, expected to rise to 5.98 next year. The company's gross profit stands at a remarkable $3.7B, despite a net interest income loss of $75M. The highest estimated target price from analysts is $170, suggesting significant upside potential. Agilent's dividend per share is 0.87, providing an additional income stream for investors. For more information, visit their website at https://www.agilent.com or contact them at 800 227 9770. Agilent Technologies' Working Capital is projected to decrease significantly, based on the last few years of reporting. The Working Capital of the previous year stood at 1.73 billion. The current year's Receivables Turnover is expected to increase to 7.01, while the Net Income Per Employee is predicted to decline to approximately $52.2K. Despite many baby boomers showing indifference towards the life sciences tools & services sector, it is worthwhile to examine Agilent Technologies. We will assess why recent price movements of Agilent Technologies suggest a potential rebound in September. Additionally, we will highlight some key fundamental factors impacting Agilent Technologies' services, and explain how these could influence the company's outlook for investors this year.
The performance of Agilent Technologies in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Agilent Technologies' stock prices. When investing in Agilent Technologies, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Agilent Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Agilent Technologies carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Agilent Technologies's Liquidity

Agilent Technologies financial leverage refers to using borrowed capital as a funding source to finance Agilent Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Agilent Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Agilent Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Agilent Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Agilent Technologies's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Agilent Technologies, but it might be worth checking our own buy vs. sell analysis

Agilent Technologies Gross Profit

Agilent Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Agilent Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Agilent Technologies Gross Profit growth over the last 10 years. Please check Agilent Technologies' gross profit and other fundamental indicators for more details.

Breaking down Agilent Technologies Indicators

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Agilent Technologies has an asset utilization ratio of 65.12 percent. This suggests that the company is making $0.65 for each dollar of assets. An increasing asset utilization means that Agilent Technologies is more efficient with each dollar of assets it utilizes for everyday operations. Agilent Technologies, a prominent player in the Healthcare Equipment & Supplies industry, is currently under the spotlight for its potential investment opportunities. With a market capitalization of $37.72B and a net asset value of $10.52B, the company's financial stability is evident. The company's operating margin stands at 0.25%, and it boasts a net income of $1.25B, demonstrating its profitability. Agilent's Price to Earnings To Growth (PEG) ratio is 2.36X, slightly higher than the industry average, indicating that investors are willing to pay a premium for its future earnings growth.
The company's EPS estimate for the current year is 5.5, and it's expected to increase to 5.98 next year, suggesting a positive earnings outlook. The company's shares are largely held by institutions, with 91.47% of shares owned by institutional investors. indicating strong confidence in the company's prospects. However, the company has a short ratio of 2.45X, with 4.57M shares shorted, suggesting some investors are betting on the stock price to fall. Agilent's stock is currently trading at a Price to Book ratio of 8.63X and a Price to Sales ratio of 6.50X. The Wall Street target price for the stock is $140.83, indicating potential upside from the current levels. With these factors in mind, Agilent Technologies appears to offer unprecedented investment opportunities. .

Will Agilent Technologies current rise continue?

Despite the recent surge in Agilent Technologies' stock, the current Market Risk Adjusted Performance of -0.1 suggests potential instability ahead. This negative figure implies that the stock may not be performing as well as other investments when considering the level of risk involved. As a result, there's a chance that the stock price may decline again. Therefore, while the recent increase in Agilent's stock is promising, investors should proceed with caution as the sustainability of this upward trend is uncertain. Agilent Technologies displays very low volatility with a skewness of -0.67 and a kurtosis of 3.07. However, we recommend investors to further investigate Agilent Technologies' technical indicators to ensure all market information is available and reliable. Understanding different market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to measure Agilent Technologies' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect Agilent Technologies' stock price, adding stress to investors as they watch the value of their shares decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Agilent Technologies (USA Stocks:A) has shown a robust performance, with its stock appreciating over 4 percent despite a modest market slip. With a Valuation Market Value of 127.71 and a Valuation Real Value of 134.58, the company appears to be a sound investment. Analysts are largely bullish on the stock, with 8 out of 12 providing a 'Strong Buy' rating, and an overall consensus of 'Buy'. The Analyst Target Price Estimated Value stands at 143.416, suggesting potential for further growth. However, investors should also consider the Analyst Lowest Estimated Target Price of 126 and the possible downside price of 125. Overall, Agilent's strong performance and positive analyst sentiment make it a compelling investment opportunity. .

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Agilent Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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