Agco Corporation Intrinsic Value – AGCO CORPORATION Reports Second Quarter FY2023 Financial Results
August 10, 2023
🌥️Earnings Overview
On July 27 2023, AGCO ($NYSE:AGCO) Corporation reported their financial results for the second quarter of FY2023. Compared to the same period last year, their total revenue of USD 3822.7 million for the quarter ending June 30 2023 was a 29.8% increase and their net income of USD 319.2 million was a 79.6% year over year growth.
Market Price
The company saw its stock open at $135.0 and close at $132.5, marking a decline of 3.1% from the prior closing price of 136.8. Despite the decrease in stock price, the company reported strong results in various aspects of their financial performance. In addition to improved financial performance, AGCO CORPORATION also announced that they had successfully completed two acquisitions during the quarter, adding to their portfolio of agricultural equipment and solutions.
The acquisitions build on the company’s commitment to expanding their reach in the industry and bring their total number of completed acquisitions this fiscal year to four. The company’s continued commitment to expanding its reach through strategic acquisitions will no doubt serve AGCO CORPORATION well into the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Agco Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 14.18k | 1.11k | 7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Agco Corporation. More…
| Operations | Investing | Financing |
| 1.04k | -514.5 | -618.6 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Agco Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.39k | 7.25k | 55.28 |
Key Ratios Snapshot
Some of the financial key ratios for Agco Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.3% | 53.3% | 10.4% |
| FCF Margin | ROE | ROA |
| 3.9% | 22.4% | 8.1% |
Analysis – Agco Corporation Intrinsic Value
At GoodWhale, we have conducted an analysis of AGCO CORPORATION‘s wellbeing. After crunching the numbers and applying our proprietary Valuation Line, we have arrived at a fair value of AGCO CORPORATION share price around $140.1. However, currently it is trading at $132.5 – a fair price undervalued by 5.4%. We believe this presents a great opportunity for investors to get in at a discounted rate. More…
Peers
AGCO Corp is an agricultural machinery company that manufactures and distributes agricultural equipment and related replacement parts. The company operates through four segments: Tractors and Combines, Hay and Forage, Implements, and Other. AGCO Corp was founded in 1990 and is headquartered in Duluth, Georgia. The company’s products are sold under the brand names Challenger, Fendt, Giddings & Lewis, Massey Ferguson, RoGator, and TerraGator. Deere & Co is a leading manufacturer of agricultural equipment. The company’s products include tractors, combines, hay balers, forage harvesters, and various other agricultural equipment. Deere & Co was founded in 1837 and is headquartered in Moline, Illinois. CNH Industrial NV is a leading manufacturer of agricultural and construction equipment. The company’s products include tractors, combine harvesters, hay balers, forage harvesters, excavators, and wheel loaders. CNH Industrial NV was founded in 1999 and is headquartered in London, United Kingdom. Titan International Inc is a leading manufacturer of agricultural and construction equipment tires. The company’s products include tires for tractors, combines, hay balers, forage harvesters, excavators, and wheel loaders. Titan International Inc was founded in 1960 and is headquartered in Quincy, Illinois.
– Deere & Co ($NYSE:DE)
Deere & Co is a leading manufacturer of agricultural and construction equipment. The company has a market cap of 117.32B and a return on equity of 25.53%. Deere & Co is a well-known and trusted brand in the agricultural and construction industry. The company’s products are known for their quality and durability. Deere & Co has a strong reputation in the industry and is a trusted name by farmers and construction workers alike.
– CNH Industrial NV ($NYSE:CNHI)
CNH Industrial NV is a leading global manufacturer of agricultural and construction equipment. The company has a market cap of 17.43B as of 2022 and a Return on Equity of 29.84%. CNH Industrial NV designs, produces, and sells a full line of agricultural and construction equipment under the Case IH, New Holland, and Case Construction brands. The company’s products are used in a variety of applications, including farming, ranching, construction, and landscaping.
– Titan International Inc ($NYSE:TWI)
Titan International Inc is a leading manufacturer of off-highway wheels, tires, assemblies and undercarriage products. The company has a market cap of 947.72M as of 2022 and a Return on Equity of 43.03%. Titan serves a global customer base in the agricultural, construction, earthmoving, forestry and mining markets. The company’s products are sold in over 130 countries around the world. Titan is committed to delivering innovative, high-quality products that meet the needs of its customers.
Summary
AGCO CORPORATION’s second quarter of FY2023 saw a significant increase in revenue and net income. Revenue for the quarter ending June 30 2023 was USD 3822.7 million, a 29.8% increase compared to the same period last year; while net income for the quarter was USD 319.2 million, a 79.6% year over year growth. Despite the positive news, AGCO CORPORATION’s stock price moved down the same day.
Investors should consider the strong financial performance in the past quarter and consider whether this indicates potential for further investments or not. Analyzing the company’s track record, future growth prospects, and competitive atmosphere can help shed light on the potential of AGCO CORPORATION as an investment option.
