Agilent (A) AI Stock Analysis

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Agilent

(NYSE:A)

Rating:69Neutral

Price Target:

$119.00

▲( 9.65% Upside)

Agilent's strong financial performance and positive earnings guidance are the main strengths, reflecting its strategic growth areas. However, neutral technical indicators and a high valuation dampen the overall appeal. Investors should consider potential risks from currency fluctuations and funding uncertainties.

Positive Factors

China Market

Agilent won over 50% of China stimulus-related tenders, enhancing their market position in China.

Product Upgrades

Agilent's Infinity III sales reached $100M, highlighting the early stages of upgrade cycle demand as thousands of Agilent 1100s are reaching end-of-support status.

Negative Factors

Foreign Exchange Impacts

Agilent's revenue guidance for FY25 was lowered due to incremental FX headwinds.

Market Challenges

The Applied Markets Group segment saw a decline of 2%, indicating a challenge in that area.

Agilent (A) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$32.35B

Dividend Yield0.88%

Average Volume (3M)2.12M

Price to Earnings (P/E)26.1

Beta (1Y)1.01

Revenue Growth-3.00%

EPS Growth3.67%

CountryUS

Employees17,900

SectorHealthcare

Sector Strength42

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)1.31

Shares Outstanding285,102,720

10 Day Avg. Volume2,262,268

30 Day Avg. Volume2,123,412

Financial Highlights & Ratios

PEG Ratio-15.28

Price to Book (P/B)5.06

Price to Sales (P/S)0.00

P/FCF Ratio23.24

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue1.24

Enterprise Value/Gross Profit9.18

Enterprise Value/Ebitda4.66

Forecast

1Y Price Target

$134.44

Price Target Upside23.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Agilent Business Overview & Revenue Model

Company DescriptionAgilent Technologies, Inc. provides application focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The Life Sciences and Applied Markets segment offers liquid chromatography systems and components; liquid chromatography mass spectrometry systems; gas chromatography systems and components; gas chromatography mass spectrometry systems; inductively coupled plasma mass spectrometry instruments; atomic absorption instruments; microwave plasma-atomic emission spectrometry instruments; inductively coupled plasma optical emission spectrometry instruments; raman spectroscopy; cell analysis plate based assays; flow cytometer; real-time cell analyzer; cell imaging systems; microplate reader; laboratory software; information management and analytics; laboratory automation and robotic systems; dissolution testing; vacuum pumps, and measurement technologies. The Diagnostics and Genomics segment provides arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, gene expression profiling, next generation sequencing, target enrichment and genetic data management, and interpretation support software; and produces synthesized oligonucleotide. It also offers immunohistochemistry in situ hybridization, and hematoxylin and eosin staining and special staining; consumables, and software for quality control analysis of nucleic acid samples; and reagents for use in turbidimetry and flow cytometry, as well as develops liquid-based pharmacodiagnostics. The Agilent CrossLab segment provides GC and LC columns, sample preparation products, custom chemistries, and laboratory instrument supplies; and startup, operational, training, compliance support, software as a service, asset management, and consultation services. The company markets its products through direct sales, distributors, resellers, manufacturer's representatives, and electronic commerce. Agilent Technologies, Inc. was incorporated in 1999 and is headquartered in Santa Clara, California.

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 Key Performance Indicators (KPIs)

Any

Revenue by End Market

Revenue by End Market
Shows revenue distribution across various end markets, indicating the company's exposure to different industries and potential market-specific risks or opportunities.

Chart InsightsAgilent's Pharmaceutical and Biopharmaceutical segment shows a recent recovery after a period of decline, aligning with the company's guidance for core revenue growth. However, the Academia and Government segment faces challenges, with a 7% decline due to global softness, as highlighted in the earnings call. Despite these challenges, Agilent's strong performance in PFAS testing and success in China stimulus awards indicate strategic growth areas. Investors should watch for potential impacts from currency fluctuations and U.S. federal funding uncertainties, which could affect future performance.

Data provided by:

Main Street Data

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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
6.53B	6.51B	6.83B	6.85B	6.32B	5.34B
	Gross Profit
3.53B	3.54B	3.46B	3.72B	3.41B	2.84B
	EBIT
1.48B	1.49B	1.35B	1.62B	1.35B	846.00M
	EBITDA
1.74B	1.87B	1.70B	1.99B	1.73B	1.35B
	Net Income Common Stockholders
1.26B	1.29B	1.24B	1.25B	1.21B	719.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.47B	1.33B	1.59B	1.05B	1.57B	1.44B
	Total Assets
11.91B	11.85B	10.76B	10.53B	10.71B	9.63B
	Total Debt
3.36B	3.39B	2.73B	2.77B	2.73B	2.36B
	Net Debt
1.90B	2.06B	1.15B	1.72B	1.25B	918.00M
	Total Liabilities
5.89B	5.95B	4.92B	5.23B	5.32B	4.75B
	Stockholders Equity
6.03B	5.90B	5.84B	5.30B	5.39B	4.87B
Cash Flow		Free Cash Flow
1.31B	1.37B	1.47B	1.02B	1.30B	802.00M
	Operating Cash Flow
1.70B	1.75B	1.77B	1.31B	1.49B	921.00M
	Investing Cash Flow
-1.26B	-1.26B	-310.00M	-338.00M	-749.00M	-147.00M
	Financing Cash Flow
-692.00M	-752.00M	-930.00M	-1.37B	-696.00M	-717.00M

Agilent Technical Analysis

Technical Analysis Sentiment

Negative

Last Price108.53

Price Trends

50DMA

110.57

Negative

100DMA

124.24

Negative

200DMA

130.84

Negative

Market Momentum

MACD

0.32

Negative

RSI

46.56

Neutral

STOCH

18.38

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 108.53 is below the 20-day moving average (MA) of 109.82, below the 50-day MA of 110.57, and below the 200-day MA of 130.84, indicating a bearish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.38 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 35 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 1 New Risks

Recent and dynamic government rule making and policy changes could increase our costs, affect our markets and customers and impact our results of operations. Q4, 2024

Agilent Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	74 Outperform	$41.59B	46.28	59.33%	―	5.56%	4.66%
WAT	71 Outperform	$20.74B	31.60	40.82%	―	2.57%	8.31%
A	69 Neutral	$32.35B	26.08	20.61%	0.88%	-3.00%	3.67%
TMO	69 Neutral	$148.60B	23.10	13.73%	0.40%	0.96%	9.19%
MTD	65 Neutral	$23.15B	27.79	-680.23%	―	1.18%	12.34%
DHR	64 Neutral	$132.07B	35.78	7.22%	0.60%	-9.19%	-12.75%
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%

* Healthcare Sector Average

Performance Comparison

Agilent

108.53

-41.02

-27.43%

DHR

Danaher

184.54

-77.00

-29.44%

IDXX

Idexx Laboratories

501.57

-14.93

-2.89%

MTD

Mettler-Toledo

1,114.14

-365.39

-24.70%

TMO

Thermo Fisher

393.66

-188.70

-32.40%

WAT

Waters

346.37

9.91

2.95%

Agilent Earnings Call Summary

Earnings Call Date:Feb 26, 2025

(Q1-2025)

% Change Since: -19.12%|

Next Earnings Date:May 28, 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.

Q1-2025 Updates

Positive Updates

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.

Negative Updates

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

Executive/Board ChangesBusiness Operations and Strategy

Agilent Expands Board, Appoints Two New Directors

Neutral

May 21, 2025

On May 20, 2025, Agilent Technologies announced the expansion of its Board of Directors from 10 to 12 members, appointing Pascal Soriot and Judy Gawlik Brown as new directors. Soriot, CEO of AstraZeneca, and Brown, founder of Downtown Advisory, bring extensive experience in pharmaceuticals, biotechnology, and strategic leadership, which is expected to support Agilent’s growth initiatives. The company also amended its bylaws to streamline decision-making processes. Additionally, Heidi Kunz retired from the Board after over 20 years of service, marking a significant transition in Agilent’s leadership.

The most recent analyst rating on (A) stock is a Hold with a $130.00 price target. To see the full list of analyst forecasts on Agilent stock, see the A Stock Forecast page.

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.