AGCO AGCO
United StatesIndustrials · Farm & Heavy Construction MachineryUSD
124.73 USD (+14.3%)
15 analysts
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AGCO Corporation is a global manufacturer and distributor of agricultural machinery, including tractors, harvesters, and precision equipment, sold under brands such as Fendt, Massey Ferguson, and Valtra.
Key points
from its scores- ✓Attractive valuation7.1
- ✕Weak growth1.6
- ✕Little or no dividend4.5
- ✕Little competitive advantage4.6
AI analysis
bottom line, main risk, context and newsHold pending signs of stabilization in agricultural machinery demand and margins; the valuation is not enough to compensate for the sharp drop in earnings.
AGCO presents an attractive valuation profile (P/E 15.1, FCF yield 5.89%) but with a business in clear slowdown: revenue is down 1% and profit has collapsed 74.4%, with an operating margin of only 5.73%. Financial health is acceptable (ND/EBITDA 2.29), but quality and growth are weak, suggesting the apparent value may be a trap if the agricultural cycle does not improve.
The main risk is the cyclical nature of the agricultural equipment business: the sharp drop in profit (-74.4%) and the low operating margin (5.73%) indicate that the company is highly sensitive to farmer profitability and crop prices, which could continue to deteriorate.
Context and risks
AGCO is a global manufacturer of agricultural machinery with significant exposure to emerging markets and to the evolution of agricultural commodity prices. The weakness in revenue growth and the sharp drop in profit reflect a challenging demand environment. The main risk is the cyclical nature of the agricultural equipment business, which depends on farmer profitability and crop prices, factors that could continue to pressure results.
Is AGCO stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 35% below the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 15.1 | 25.4 | −41% |
| EV / EBITDA | 10.1 | 14.5 | −30% |
| Price / book | 1.9 | 4.1 | −54% |
| Price / sales | 0.7 | 2.1 | −64% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.1 out of 10 (median for Industrials: 5.0).
Average analyst target: 124.73 USD, +14.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.7 (sector 6.4), Growth 1.6 (sector 6.6).
Classic formulas with standard assumptions (3.4% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 15.1
- Forward P/E
- 14.6
- EV / EBITDA
- 10.1
- Price / book
- 1.9
- Price / sales
- 0.7
- PEG
- 0.92
- Market cap
- 7.6B USD
- Enterprise value
- 10.3B USD
Profitability
- ROE
- 11.8%
- ROA
- 3.5%
- ROIC (approx.)
- 8.5%
- Gross margin
- 25.3%
- Operating margin
- 5.7%
- Net margin
- 5.2%
- Free cash flow
- 450.3M USD
- FCF yield
- 5.9%
- Cash conversion
- 45%
Solvency
- Total debt
- 2.9B USD
- Net debt
- 2.3B USD
- Cash
- 573.4M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 2.29
- Debt / equity
- 66.05
- Current ratio
- 1.32
- Quick ratio
- 0.45
Growth
- Revenue growth
- −1.0%
- Earnings growth
- −74.4%
- EPS (TTM)
- 7.23 USD
- EPS (forward)
- 7.47 USD
Dividend
- Dividend yield
- 1.1%
- Payout
- 16.2%
Risk and market
- Beta
- 1.07
- Analyst consensus
- Buy (15)
- Target price
- 124.73 USD
- 52-week range
- 98.22 – 143.78
Recent news
All AGCO news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about AGCO
Is AGCO stock cheap or expensive?
On P/E and EV / EBITDA, it trades 35% below the Industrials median on average. Valuation score: 7.1 out of 10 (median for Industrials: 5.0). Average analyst target: 124.73 USD, +14.3% versus the price. This is not investment advice.
What score does AGCO get on MeridIAn Screener?
It scores 5.1 out of 10, rank 1,622 of 2,130 (better than 21% of the companies analysed). Its strongest category is Valuation (7.1) and its weakest, Growth (1.6). Analysis of 08/10/2026.
What is AGCO's P/E ratio?
Its P/E is 15.1: the share price equals 15.1 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 14.6.
How much is AGCO worth on the stock market?
Its market capitalisation is 7.6B USD and its enterprise value, debt included, is 10.3B USD.
How much debt does AGCO have?
Its net debt (debt minus cash) is 2.3B USD. That is 2.29 times its EBITDA; the Industrials median is 1.58.
Does AGCO pay a dividend?
Yes: its dividend yield is 1.10% and it pays out 16% of its earnings.
How has AGCO stock performed over the last year?
It has risen 6.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 98.22 and 143.78 USD. Past performance does not guarantee future results.
What do analysts think of AGCO?
15 analysts cover it; their average recommendation is “Buy” and their average target is 124.73 USD (+14.3% versus the price). It is an estimate, not market data.