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Agilent (A)
NYSE:A
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Agilent
(NYSE:A)68Neutral
Positive Factors
Financial Performance
Agilent delivered a healthy beat vs expectations, driven by strong 70% PFAS growth and $35M from China stimulus.
Product Innovations
Agilent's investments in 'made in China for China' capacity should mitigate the impact from ongoing geopolitical tensions.
Negative Factors
Market Uncertainty
Despite the beat, management remains prudent with the 2.5-3.5% guide, reflecting uncertainty in the academic market despite limited NIH exposure.
Agilent (A) vs. S&P 500 (SPY)
Market Cap
$35.08B
Dividend Yield0.76%
Average Volume (3M)1.81M
Price to Earnings (P/E)28.3
Beta (1Y)1.05
Revenue Growth-3.00%
EPS Growth3.67%
CountryUS
Employees17,900
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)4.35
Shares Outstanding285,102,720
10 Day Avg. Volume2,091,701
30 Day Avg. Volume1,814,246
Financial Highlights & Ratios
PEG Ratio7.71
Price to Book (P/B)N/A
Price to Sales (P/S)5.54
Price to Cash Flow (P/CF)18.80
P/FCF Ratio17.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.78Price Target Upside24.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Agilent Business Overview & Revenue Model
Company DescriptionAgilent Technologies, Inc. is a global leader in life sciences, diagnostics, and applied chemical markets. The company provides laboratories worldwide with instruments, services, consumables, applications, and expertise, enabling customers to gain the insights they seek. Agilent's operations are organized into three primary business segments: Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. The company's products include equipment such as chromatography and mass spectrometry systems, laboratory automation, and software solutions.
How the Company Makes MoneyAgilent Technologies generates revenue primarily through the sale of its instruments, consumables, and services across its three main business segments. The Life Sciences and Applied Markets segment offers a variety of analytical instruments and software that cater to customers in the pharmaceutical, environmental, and food industries. The Diagnostics and Genomics segment provides pathology solutions, genomics services, and nucleic acid contract manufacturing. Agilent CrossLab, the company's services division, contributes through laboratory management services, software maintenance, and compliance services. Agilent's revenue is bolstered by strategic partnerships and collaborations that expand its product offerings and market reach, as well as by recurrent sales from consumables and after-market services.
Agilent Financial Statement Overview
Summary
Agilent showcases a strong financial position with consistent revenue growth, solid profitability, and prudent financial management. The balance sheet is stable, with a healthy mix of equity and debt, while cash flow metrics highlight effective cash generation and utilization. The company's financial strategy appears well-aligned with its growth objectives, though monitoring leverage will be important to manage any potential risks.Income Statement
Agilent demonstrates strong financial performance with consistent growth in revenue and solid profitability margins. The TTM revenue shows a slight increase compared to the annual figures, indicating stable growth. Gross profit margin is robust at approximately 65.9%, and the net profit margin is healthy at around 19.3%. The company maintains a steady EBIT margin of 22.6% and an EBITDA margin of 25.2%, reflecting efficient operational management.85
Very Positive
Balance Sheet
Agilent's balance sheet exhibits financial stability with a balanced equity and debt structure. The debt-to-equity ratio is approximately 0.56, indicating prudent use of leverage. The return on equity is a commendable 20.9%, suggesting effective utilization of shareholder investments. The equity ratio of 50.6% highlights a strong equity base relative to total assets, contributing to financial resilience.78
Positive
Cash Flow
The company's cash flow is robust, characterized by strong operating cash flow generation relative to net income, with a ratio of 1.35. Free cash flow shows positive growth, enhancing financial flexibility. The free cash flow to net income ratio is healthy at 1.12, indicating efficient cash generation and reinvestment capability.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.66B | 6.51B | 6.83B | 6.85B | 6.32B | 5.34B | Gross Profit |
| 3.61B | 3.54B | 3.46B | 3.72B | 3.41B | 2.84B | EBIT |
| 1.54B | 1.49B | 1.35B | 1.62B | 1.35B | 846.00M | EBITDA |
| 1.91B | 1.49B | 1.70B | 1.99B | 1.73B | 1.35B | Net Income Common Stockholders |
| 1.33B | 1.29B | 1.24B | 1.25B | 1.21B | 719.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.33B | 1.33B | 1.59B | 1.05B | 1.57B | 1.44B | Total Assets |
| 11.85B | 11.85B | 10.76B | 10.53B | 10.71B | 9.63B | Total Debt |
| 3.39B | 3.39B | 2.73B | 2.77B | 2.73B | 2.36B | Net Debt |
| 2.06B | 2.06B | 1.15B | 1.72B | 1.25B | 918.00M | Total Liabilities |
| 5.95B | 5.95B | 4.92B | 5.23B | 5.32B | 4.75B | Stockholders Equity |
| 5.90B | 5.90B | 5.84B | 5.30B | 5.39B | 4.87B |
| Cash Flow | Free Cash Flow | ||||
| 1.02B | 1.37B | 1.47B | 1.02B | 1.30B | 802.00M | Operating Cash Flow |
| 1.30B | 1.75B | 1.77B | 1.31B | 1.49B | 921.00M | Investing Cash Flow |
| -287.00M | -1.26B | -310.00M | -338.00M | -749.00M | -147.00M | Financing Cash Flow |
| -1.35B | -752.00M | -930.00M | -1.37B | -696.00M | -717.00M |
Agilent Technical Analysis
Negative
123.06
Price Trends
139.82
Negative
138.08
Negative
137.70
Negative
Market Momentum
-4.53
Positive
21.82
Positive
10.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For A, the sentiment is Negative. The current price of 123.06 is below the 20-day moving average (MA) of 136.77, below the 50-day MA of 139.82, and below the 200-day MA of 137.70, indicating a bearish trend. The MACD of -4.53 indicates Positive momentum. The RSI at 21.82 is Positive, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for A.
Agilent Risk Analysis
Agilent disclosed 34 risk factors in its most recent earnings report. Agilent reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agilent Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $194.88B | 31.23 | 12.78% | 0.30% | 0.05% | 6.87% | |
68 Neutral | $35.08B | 28.28 | 20.89% | 0.76% | -3.00% | 3.67% | |
68 Neutral | $26.62B | 31.31 | -680.23% | ― | 2.22% | 12.78% | |
65 Neutral | $147.01B | 38.89 | 7.87% | 0.53% | -13.50% | -17.25% | |
63 Neutral | $21.87B | 34.35 | 34.88% | ― | 0.07% | -1.20% | |
58 Neutral | $7.16B | 62.42 | 6.35% | 0.43% | 13.56% | -73.92% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
A
Agilent
123.06
-20.30
-14.16%
BRKR
Bruker
46.42
-43.54
-48.40%
DHR
Danaher
205.91
-47.39
-18.71%
MTD
Mettler-Toledo
1,240.97
-45.93
-3.57%
TMO
Thermo Fisher
516.57
-66.45
-11.40%
WAT
Waters
368.05
24.64
7.18%
Agilent Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -8.49% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
Agilent's earnings call highlighted a strong start to the fiscal year with notable achievements in revenue growth, digital transformation, and success in China stimulus awards. However, challenges were noted in the Academia and Government markets, currency impacts, and potential U.S. federal funding uncertainties.Highlights
Solid Start to Fiscal Year 2025
Agilent exceeded expectations for core revenue growth and EPS in Q1 2025, reporting revenue of $1.681 billion, a 1% year-over-year increase.
Successful Ignite Transformation Initiatives
Notable accomplishments include setting new pricing mechanisms, elevating the digital ecosystem, and identifying procurement opportunities, contributing to topline growth.
Digital Orders Growth
Digital orders grew by high-single-digits in Q1, showing continued investment in the digital ecosystem.
China Stimulus Awards Success
Agilent captured an outsized share of China stimulus awards, achieving a win rate of over 50% on stimulus-related tenders.
Strong Performance in PFAS Testing
Agilent's PFAS testing solutions grew 70% in Q1, contributing 75 basis points of growth to the company.
Recognition for Manufacturing Excellence
Agilent's Shanghai and Penang factories were named Global Lighthouse Networks by the World Economic Forum for technological breakthroughs.
Lowlights
Challenges in Academia and Government Markets
Revenue in the Academia and Government market declined by 7% due to soft results globally.
Impact of Currency Fluctuations
Currency had a negative impact on Q1 revenue by 1.4 percentage points, and is expected to represent a 1.9% headwind for the fiscal year.
Decline in Applied Markets Group
Applied Markets Group reported a 2% decline in Q1, despite strong China stimulus orders.
Potential Impact of U.S. Federal Funding Environment
Uncertainty over U.S. federal funding, particularly NIH funding, was noted as a concern, although it represents a small part of Agilent's business.
Company Guidance
During Agilent Technologies Inc.'s first-quarter earnings call for fiscal year 2025, the company provided guidance and key metrics for the year. Agilent expects core revenue growth between 5% and 7% annually, with plans to expand its operating margin by 50 to 100-plus basis points per year, and to deliver double-digit EPS growth. The company's first-quarter revenue was $1.681 billion, marking a 1% increase over the same quarter in FY 2024, with core growth estimated at 1.2% despite a stronger U.S. dollar. Agilent's Life Sciences and Diagnostics Markets Group reported $647 million in revenue, while the Agilent CrossLab Group generated $696 million, and the Applied Markets Group reported $338 million. The company is maintaining its full-year non-GAAP earnings per share guidance of $5.54 to $5.61. Agilent's guidance reflects a 2.5% to 3.5% core growth for the year, with an anticipated currency headwind of 1.9%. Notably, Agilent experienced strong growth in areas like PFAS testing, which grew 70% in the quarter, and the company continues to see traction with its Infinity III series, supporting the replacement cycle of its installed base.Agilent Corporate Events
Business Operations and Strategy
Agilent Technologies Announces Operational Restructuring Plan
Neutral
Dec 13, 2024
Agilent Technologies announced a reorganization of its operational structure into three distinct business segments, reflecting a strategic shift towards a more market-focused and customer-centric approach. The new structure, which will be reflected in financial statements from January 2025, aims to enhance the company’s operational efficiency and align its services more closely with market demands.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.