A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
AGCO CORP /DE
AGCO
$9.0B
Mkt Cap
$121.21
+3.36%
AGCO CORP /DE (AGCO) has a current P/E ratio of 12.4, compared to its historical median P/E of 12.6. The stock is currently considered Fair based on its historical valuation range.
AGCO CORP /DE (AGCO) has a 5-year average return on invested capital (ROIC) of 16.0%. This indicates strong capital allocation and a potential competitive advantage.
AGCO CORP /DE (AGCO) has a market capitalization of $8.8B. It is classified as a mid-cap stock.
Yes, AGCO CORP /DE (AGCO) pays a dividend with a trailing twelve-month yield of 0.98%. The company also returns capital through share buybacks, with a buyback yield of 2.85%.
Based on historical P/E analysis, AGCO CORP /DE (AGCO) appears fair. The current P/E of 12.4 is 1% below its historical median of 12.6. The estimated fair value CAGR (P/E method) is 17.8%.
AGCO CORP /DE (AGCO) operates in the Farm Machinery & Equipment industry, within the Industrials sector.
AGCO CORP /DE (AGCO) reported annual revenue of $10.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
AGCO is a global leader in agricultural machinery and precision agriculture technologies, operating through differentiated brands including Fendt, Massey Ferguson, PTx, and Valtra that serve farmers across approximately 140 countries. The company generates revenue from three primary segments: tractors (66% of 2025 net sales), which range from high-horsepower models for large-scale row crop operations to compact units for specialty agriculture; combines and hay tools (13% of sales) used for harvesting and forage operations; and replacement parts (19% of sales), which support equipment with 10–20 year economic lives through a global warehouse network. AGCO's business model combines equipment manufacturing with precision agriculture solutions delivered through a retrofit-first strategy via the PTx brand, enabling farmers using mixed fleets to optimize planting, fertilizer application, and harvest operations for improved yields and profitability. The company distributes products through approximately 2,800 independent dealers and distributors and provides retail and wholesale financing through joint ventures with Rabobank, creating a capital-light, dealer-centric distribution model. Competitive differentiation rests on brand strength, technology integration across mixed-fleet platforms, and a farmer-first strategy emphasizing productivity and sustainability, with geographic exposure concentrated in North America, Western Europe, and Latin America, where stable subsidy frameworks and long-term agricultural demand underpin market fundamentals.
【Demand stabilization with margin recovery】 Management expects global agricultural markets to remain relatively flat in 2026 compared to 2025, with industry demand positioned at approximately 86% of mid-cycle levels as the market enters a stabilization phase following extended margin compression and elevated borrowing costs. North American large equipment demand is forecast to decline approximately 15% below 2025 levels due to persistent farm income pressures and high input costs, while Western Europe is expected to grow modestly supported by subsidy stability and improved profitability, and Latin America is anticipated to decline modestly as interest rates and credit conditions continue to constrain purchasing. The company is executing a deliberate step-down in production throughout 2026 to align output with retail demand and support dealer inventory normalization toward target levels, with production hours expected to be broadly flat to modestly lower than 2025. AGCO anticipates adjusted operating margins in the range of 7.5%–8% for 2026, reflecting structural portfolio improvements and cost actions partially offset by price-cost pressures, increased tariff costs of approximately $135 million, and elevated freight expenses, while engineering investment is planned at approximately 5% of sales to support innovation across the portfolio.
| Metric | Target | Period |
|---|---|---|
| Net Sales | $10.5 billion–$10.7 billion | FY2026 |
| Adjusted Earnings Per Share | approximately $6 | FY2026 |
| Adjusted Operating Margin | 7.5%–8% | FY2026 |
| Capital Expenditures | around $350 million | FY2026 |
| Free Cash Flow Conversion | 75%–100% of adjusted net income | FY2026 |
| Tariff Costs | approximately $135 million | FY2026 |
| Restructuring Savings | $60 million–$70 million | FY2026 |
| Effective Tax Rate | 31%–33% | FY2026 |
Net Sales (FY2026): “We have modestly tightened our full year net sales outlook to $10.5 billion-$10.7 billion, reflecting improved performance in certain regions, slightly higher foreign exchange effects and continued execution, partially offset by ongoing market volatility.”
Adjusted Earnings Per Share (FY2026): “Adjusted earnings per share are targeted at approximately $6, supported by continued strong cost discipline and execution consistency.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Tractors | $6.39B | $7.42B | $8.71B | $7.06B | $6.69B | 66% |
Replacement parts | $1.69B | $1.69B | $1.82B | $1.83B | $1.87B | 19% |
Combines, application equipment and other machinery | $1.99B | $2.44B | $2.82B | $1.94B | $1.51B | 15% |
Grain storage and protein production systems | $1.08B | $1.10B | $1.06B | $833M | $1M | 0% |
Other | — | — | $1.02B | $817M | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 10.4B | 10.1B | 11.7B | 14.4B | 12.7B | 11.1B |
| Net Income | 771M | 727M | -425M | 1.2B | 890M | 897M |
| EPS | $10.39 | $9.75 | $-5.69 | $15.63 | $11.87 | $11.85 |
| Free Cash Flow | 546M | 740M | 297M | 585M | 450M | 390M |
| ROIC | 10.9% | 10.5% | -2.1% | 27.6% | 21.2% | 23.1% |
| Gross Margin | 25.3% | 25.5% | 24.9% | 26.2% | 23.7% | 23.1% |
| Debt/Equity | 0.60 | 0.61 | 0.75 | 0.34 | 0.42 | 0.49 |
| Dividends/Share | $1.19 | $1.16 | $3.66 | $6.10 | $5.40 | $0.16 |
| Operating Income | 627M | 596M | -122M | 1.7B | 1.3B | 1.0B |
| Operating Margin | 6.0% | 5.9% | -1.0% | 11.8% | 10.0% | 9.0% |
| ROE | 17.9% | 18.1% | -10.1% | 27.4% | 24.4% | 28.0% |
| Shares Outstanding | 72M | 75M | 75M | 75M | 75M | 76M |
AGCO CORP /DE passes 6 of 9 quality checks, suggesting mixed fundamentals.
AGCO CORP /DE trades at 12.4x trailing earnings, compared to its 15-year median P/E of 12.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 11.9x vs a median of 13.8x. The company's 5-year average ROIC is 16.0% with a gross margin of 24.7%. Total shareholder yield (dividends + buybacks) is 3.8%. At current prices, the estimated annualized return to fair value is +6.2%.
AGCO CORP /DE (AGCO) has a net profit margin of 7.2%. This is a modest margin.
AGCO CORP /DE (AGCO) generated $740 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AGCO CORP /DE (AGCO) has a debt-to-equity ratio of 0.61. This indicates moderate leverage.
AGCO CORP /DE (AGCO) reported earnings per share (EPS) of $9.75 in its most recent fiscal year.
AGCO CORP /DE (AGCO) has a return on equity (ROE) of 18.1%. This indicates the company generates strong returns for shareholders.
AGCO CORP /DE (AGCO) has a 5-year average gross margin of 24.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for AGCO CORP /DE (AGCO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AGCO CORP /DE (AGCO) has a book value per share of $57.35, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects global agricultural markets to remain relatively flat in 2026 compared to 2025, with industry demand positioned at approximately 86% of mid-cycle levels as the market enters a stabilization phase following extended margin compression and elevated borrowing costs. North American large equipment demand is forecast to decline approximately 15% below 2025 levels due to persistent farm income pressures and high input costs, while Western Europe is expected to grow modestly supported by subsidy stability and improved profitability, and Latin America is anticipated to decline modestly as interest rates and credit conditions continue to constrain purchasing. The company is executing a deliberate step-down in production throughout 2026 to align output with retail demand and support dealer inventory normalization toward target levels, with production hours expected to be broadly flat to modestly lower than 2025. AGCO anticipates adjusted operating margins in the range of 7.5%–8% for 2026, reflecting structural portfolio improvements and cost actions partially offset by price-cost pressures, increased tariff costs of approximately $135 million, and elevated freight expenses, while engineering investment is planned at approximately 5% of sales to support innovation across the portfolio.
Based on recent SEC filings and earnings calls, AGCO CORP /DE (AGCO) has provided the following forward guidance: Net Sales: $10.5 billion–$10.7 billion (FY2026); Adjusted Earnings Per Share: approximately $6 (FY2026); Adjusted Operating Margin: 7.5%–8% (FY2026); Capital Expenditures: around $350 million (FY2026); Free Cash Flow Conversion: 75%–100% of adjusted net income (FY2026), plus 3 additional metrics.
Adjusted Operating Margin (FY2026): “Based on these assumptions, adjusted operating margin is still targeted in the range of 7.5%-8%, reflecting structural portfolio improvements and cost actions, partially offset by price cost pressures, increased tariff costs, as well as increased freight costs.”
Capital Expenditures (FY2026): “Capital expenditures are planned at around $350 million, positioning the company for future demand while preserving investment discipline.”
Free Cash Flow Conversion (FY2026): “Free cash flow conversion remains targeted at 75%-100% of adjusted net income, supported by strong working capital management and ongoing inventory efficiency.”
Tariff Costs (FY2026): “We now expect tariff costs of approximately $135 million in 2026, which is around $90 million increase from 2025 and $25 million higher than our previous estimate.”
Restructuring Savings (FY2026): “We now expect them to deliver approximately $60 million-$70 million of benefit in 2026, up from $40 million-$60 million, reinforcing our ongoing transformation progress.”
Effective Tax Rate (FY2026): “although our effective tax rate was 24% in the first quarter, we still expect our effective tax rate for 2026 to be in the range of 31%-33%.”
No recent press releases.