Want to see AGCO full AI Analyst Report?
Top Page
Agco
(NYSE:AGCO)
Select Model
Select Model
Rating:62Neutral
Price Target:
$108.00
â–¼(-10.18% Downside)
Action:Reiterated
Date:08/03/26
AGCO scores 62 primarily due to solid profitability and a strengthened balance sheet, tempered by a sharp TTM revenue decline and softer/volatile free cash flow. The stock’s technical picture is notably weak (price well below key moving averages), while valuation (P/E 14.11) is reasonable and the latest guidance is steady but weighed down by tariff and Latin America headwinds.
Positive Factors
Balance sheet strength
Extremely low net leverage and a sizable equity base with ~12% ROE provide durable financial flexibility. This reduces solvency risk through agricultural cycles, supports capex and buybacks, and preserves capacity to fund dealer support or strategic M&A over the next several months.
Negative Factors
Sharp revenue decline
A roughly 24% TTM revenue decline signals persistent demand weakness and dealer-channel headwinds. Sustained top-line contraction impairs operating leverage, pressures margins and limits reinvestment capacity, making near-term earnings recovery and durable growth more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low net leverage and a sizable equity base with ~12% ROE provide durable financial flexibility. This reduces solvency risk through agricultural cycles, supports capex and buybacks, and preserves capacity to fund dealer support or strategic M&A over the next several months.
Read all positive factors
Agco Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and which may need strategic adjustments.
Highlights revenue from different business segments, providing insight into which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyAgco (AGCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.15B
Dividend Yield1.15%
Average Volume (3M)693.66K
Price to Earnings (P/E)14.1
Beta (1Y)0.88
Revenue Growth1.74%
EPS Growth443.88%
CountryUS
Employees22,000
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)7.24
Shares Outstanding70,031,730
10 Day Avg. Volume730,835
30 Day Avg. Volume693,664
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.82
Price to Sales (P/S)0.77
P/FCF Ratio10.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$119.33Price Target Upside-0.75% Downside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)5.78
Revenue Forecast (FY)$10.25B
Agco Business Overview & Revenue Model
Company Description
AGCO Corporation operates as a global manufacturer and distributor of essential agricultural machinery and associated replacement components. The company's diverse product portfolio includes a range of tractors: high-horsepower models designed for...
How the Company Makes Money
AGCO primarily makes money by selling agricultural machinery and related technology to farmers and agricultural businesses through a network of independent dealers, distributors, and, in some cases, direct-to-customer channels. The largest revenue...
Agco Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
The call reflected a balanced picture: clear operational and strategic progress (EPS improvement, North American share gains, product and technology milestones, dealer inventory management, share repurchases) but also meaningful near-term headwinds (notably steep Latin America sales declines, margin compression, tariff costs, and a significant year-to-date free cash flow swing). Management emphasized disciplined production alignment, cost control, and investment in precision/ag technologies to navigate the cycle, while updating guidance to reflect moderated pricing and volume assumptions.Positive Updates
Adjusted EPS Growth
Adjusted earnings per share of $1.43 in Q2, up $0.08 year-over-year, indicating underlying earnings resilience despite softer sales.
Negative Updates
Consolidated Sales Decline
Net sales for Q2 were approximately $2.6B, down ~1% year-over-year (and -4% on a constant-currency basis for the quarter), reflecting measured demand across several markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted earnings per share of $1.43 in Q2, up $0.08 year-over-year, indicating underlying earnings resilience despite softer sales.
Read all positive updates
Company Guidance
AGCO updated 2026 guidance with full-year net sales of $10.1–$10.2 billion, adjusted EPS of $5.50–$5.75 and an adjusted operating margin of ~7.5%, assuming pricing realization of 2.0–2.5% and favorable currency translation of ~2%; gross tariff-related costs are expected at ~$115 million (net tariff impact ~$95M after a $22M IEEPA refund recorded in Q2, a ~$50M increase vs. last year). Other key assumptions: engineering spend ~5% of sales, operational efficiency benefits of $60–$70M, production hours now expected slightly lower vs. 2025 (YTD production hours +≈6% through June; Q2 slightly lower), full-year CAPEX $300–$325M, third-quarter net sales $2.3–$2.4B and EPS $0.85–$0.90 (ex. additional IEEPA refunds), full-year effective tax rate 31–33%, and a free-cash-flow conversion target of 75–100% of adjusted net income (YTD free cash flow use ≈$347M vs. +$63M in 1H25); the company repurchased ≈$345M of shares in Q2 and declared a $0.30/share quarterly dividend.Agco Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
78
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.35B | 10.08B | 11.66B | 14.41B | 12.65B | 11.14B |
| Gross Profit | 2.59B | 2.50B | 2.84B | 3.74B | 2.96B | 2.51B |
| EBITDA | 1.06B | 996.00M | 58.60M | 1.69B | 1.42B | 1.25B |
| Net Income | 533.40M | 726.50M | -424.80M | 1.17B | 889.60M | 897.00M |
Balance Sheet | ||||||
| Total Assets | 11.88B | 11.93B | 11.19B | 11.42B | 10.10B | 9.18B |
| Cash, Cash Equivalents and Short-Term Investments | 573.40M | 861.80M | 612.00M | 595.00M | 787.50M | 882.20M |
| Total Debt | 111.90M | 2.69B | 2.78B | 1.53B | 1.59B | 1.62B |
| Total Liabilities | 7.51B | 7.36B | 7.15B | 6.76B | 6.22B | 5.74B |
| Stockholders Equity | 4.08B | 4.27B | 3.74B | 4.66B | 3.88B | 3.42B |
Cash Flow | ||||||
| Free Cash Flow | 330.30M | 740.20M | 296.60M | 585.00M | 449.90M | 413.10M |
| Operating Cash Flow | 589.60M | 988.10M | 689.90M | 1.10B | 838.20M | 682.90M |
| Investing Cash Flow | 116.50M | -28.30M | -1.65B | -545.70M | -496.80M | -311.10M |
| Financing Cash Flow | -902.90M | -729.20M | 1.05B | -671.70M | -407.00M | -539.50M |
Agco Technical Analysis
Negative
120.24
Price Trends
114.00
Negative
115.12
Negative
114.44
Negative
Market Momentum
-2.90
Positive
35.77
Neutral
11.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGCO, the sentiment is Negative. The current price of 120.24 is above the 20-day moving average (MA) of 112.70, above the 50-day MA of 114.00, and above the 200-day MA of 114.44, indicating a bearish trend. The MACD of -2.90 indicates Positive momentum. The RSI at 35.77 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGCO.
Agco Risk Analysis
Agco disclosed 29 risk factors in its most recent earnings report. Agco reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agco Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.79B | 16.22 | 12.32% | 1.39% | 1.93% | -12.16% | |
67 Neutral | $375.33B | 40.38 | 54.14% | 0.69% | 11.85% | -2.07% | |
66 Neutral | $7.18B | 0.55 | 4.30% | 0.97% | 29.17% | -27.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $7.15B | 14.11 | 12.45% | 0.97% | 1.74% | 443.88% | |
61 Neutral | $159.98B | 33.50 | 18.25% | 1.03% | 3.98% | -14.68% | |
50 Neutral | $12.71B | 33.20 | 4.00% | 0.90% | -4.04% | -62.88% |
* Industrials Sector Average
AGCO
Agco
101.63
-9.02
-8.15%
CAT
Caterpillar
856.96
443.56
107.30%
CNH
CNH Industrial
10.85
-1.47
-11.94%
DE
Deere
614.84
114.47
22.88%
OSK
Oshkosh
153.44
19.70
14.73%
TEX
Terex
65.35
17.48
36.51%
Agco Corporate Events
Business Operations and StrategyExecutive/Board Changes
AGCO Announces New Leadership to Drive Precision Agriculture
Positive
Aug 3, 2026
On August 3, 2026, AGCO announced executive leadership changes effective August 1, 2026, as it sharpens its focus on precision agriculture and corporate strategy. Former Chief Financial Officer Damon Audia has been appointed President of PTx Corp...
Business Operations and StrategyShareholder Meetings
AGCO updates bylaws to expand shareholder meeting rights
Positive
Jul 10, 2026
On July 8, 2026, AGCO Corporation’s board approved amendments to its Amended and Restated By-laws, granting one or more shareholders who together hold at least 25% of the company’s voting power the right to call a special meeting. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.