Agco (AGCO) AI Stock Analysis

• Market Cap: $8.20B
• Dividend Yield: 1.08%
• Average Volume (3M): 746.73K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.15
• Revenue Growth: -23.02%
• EPS Growth: -152.78%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Agricultural - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 74,586,790
• 10 Day Avg. Volume: 678,360
• 30 Day Avg. Volume: 746,731
• PEG Ratio: 0.37
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.98
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 4.00
• Enterprise Value/Ebitda: 6.75
• 1Y Price Target: $107.41
• Price Target Upside: -0.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 58 Neutral
• Price Target: $114.00 ▲(5.88%Upside)

AGCO's overall stock score is primarily influenced by its mixed financial performance and valuation challenges due to declining revenues and net losses. Technical analysis indicates positive momentum, and the share repurchase program is a strategic positive. Earnings call insights reveal operational challenges but highlight areas of potential growth.

Positive Factors

Market Recovery

AGCO is well-positioned to benefit from a likely recovery in Europe and SA, which is expected to gain momentum.

Market Share Growth

AGCO's management expects market share growth from Fendt in North and South America, as well as from Trimble PTx and Parts.

Trade Opportunities

The possibility of a US-EU trade deal and/or AGCO resolution with TAFE are potential upside catalysts for AGCO shares.

Negative Factors

Inventory Challenges

AGCO is still dealing with above-target inventory levels, particularly in North and South America.

Market Pressure

AGCO expects high horsepower equipment in North America to decline by approximately 25%, indicating continued market pressure.

Sales Decline

Q1 net sales are expected to be down 26% year-over-year, with sales sharply down in the Americas.

Agco Business Overview & Revenue Model

Company Description

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

How the Company Makes Money

AGCO generates revenue primarily through the sale of its agricultural equipment and related replacement parts. The company's revenue streams are categorized into the following segments: tractors, combines, hay and forage equipment, implements, grain storage and protein production systems, and precision agriculture technology solutions. AGCO also benefits from its extensive dealer network and after-sales services, which enhance customer loyalty and retention. Additionally, strategic partnerships and collaborations with technology providers and other industry stakeholders play a crucial role in expanding AGCO's market reach and technological capabilities, contributing to its overall revenue growth.

Agco Financial Statement Overview

Summary

AGCO's financial performance is mixed. The income statement reflects declining revenue and net losses, negatively impacting profitability. The balance sheet shows moderate stability with low leverage but negative returns. Cash flow is moderately strong with efficient cash generation, though operational challenges persist.

Income Statement

The income statement shows declining revenue and profitability. Gross Profit Margin is 24.3% for TTM, indicating a reasonable cost structure. However, the Net Profit Margin is negative due to significant net losses in recent periods. Revenue has decreased from 2023 to TTM, impacting growth metrics negatively.

Balance Sheet

The balance sheet reflects moderate financial stability. The Debt-to-Equity Ratio for TTM is low at 0.04, suggesting manageable leverage. However, the Return on Equity is negative due to net losses, which affects profitability metrics. The Equity Ratio is 33.2%, showing a sound capital structure.

Cash Flow

Cash flow analysis indicates moderate results. Free Cash Flow has grown compared to prior periods, but Operating Cash Flow to Net Income is high due to negative net income, hinting at potential underlying operational challenges. Free Cash Flow to Net Income is favorable, reflecting efficient cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.66B	14.41B	12.65B	11.14B	9.15B
Gross Profit	2.90B	3.78B	3.00B	2.57B	2.06B
EBITDA	58.60M	1.69B	1.57B	1.30B	904.10M
Net Income	-424.80M	1.17B	889.60M	897.00M	427.10M
Balance Sheet
Total Assets	11.19B	11.42B	10.10B	9.18B	8.50B
Cash, Cash Equivalents and Short-Term Investments	612.70M	595.50M	789.50M	889.10M	1.12B
Total Debt	2.78B	1.53B	1.59B	1.62B	1.74B
Total Liabilities	7.15B	6.76B	6.22B	5.74B	5.49B
Stockholders Equity	3.74B	4.66B	3.88B	3.42B	2.98B
Cash Flow
Free Cash Flow	296.60M	585.00M	449.90M	413.10M	626.60M
Operating Cash Flow	689.90M	1.10B	838.20M	682.90M	896.50M
Investing Cash Flow	-1.65B	-545.70M	-496.80M	-311.10M	-241.70M
Financing Cash Flow	1.05B	-671.70M	-407.00M	-539.50M	22.70M

Agco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 107.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGCO, the sentiment is Neutral. The current price of 107.67 is below the 20-day moving average (MA) of 109.34, above the 50-day MA of 104.94, and above the 200-day MA of 97.50, indicating a neutral trend. The MACD of 1.60 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 62.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGCO.

Agco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	77 Outperform	$8.34B	13.83	15.24%	1.50%	5.95%	-10.59%
TEX	75 Outperform	$3.39B	14.07	13.85%	1.35%	-2.78%	-51.72%
DE	72 Outperform	$138.27B	24.70	24.07%	1.24%	-22.26%	-37.83%
CAT	70 Outperform	$203.62B	21.10	55.67%	1.33%	-5.58%	-7.37%
Sector *	65 Neutral	$11.14B	16.03	5.86%	2.08%	3.18%	-25.09%
AGCO	58 Neutral	$8.20B	46.40	-13.60%	1.08%	-23.02%	-152.78%
CNH	56 Neutral	$16.23B	15.64	13.26%	1.95%	-21.99%	-52.11%

Agco Corporate Events

AGCO Announces $1 Billion Share Repurchase Program

On July 9, 2025, AGCO Corporation announced a new share repurchase program authorized by its Board of Directors, allowing the company to buy back up to $1 billion of its common stock. This initiative is part of AGCO’s capital allocation strategy aimed at maximizing shareholder value while maintaining financial flexibility for business investments and preserving its investment-grade credit ratings. The program’s execution will depend on various factors, including market conditions and stock trading prices, and may be modified or discontinued at any time.

The most recent analyst rating on (AGCO) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Agco stock, see the AGCO Stock Forecast page.

AGCO Extends Agreement with TAFE Until November 2025

On July 7, 2025, AGCO Corporation and Tractors and Farm Equipment Limited (TAFE) agreed to a fourth amendment to their existing Letter Agreement, extending its expiration date from July 15, 2025, to November 28, 2025. This extension aims to facilitate the completion of settlement agreements and the closing of the Buyback Agreement, resolving outstanding issues between the parties.

The most recent analyst rating on (AGCO) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Agco stock, see the AGCO Stock Forecast page.

AGCO and TAFE Resolve Disputes with New Agreements

On June 30, 2025, AGCO Corporation and TAFE entered into multiple agreements to resolve ongoing disputes and redefine their partnership. These agreements include a settlement of legal claims, a transfer of the Massey Ferguson brand rights in India, Nepal, and Bhutan to TAFE, a buyback of AGCO’s shares in TAFE for $260 million, and a cooperation agreement that sets limitations on TAFE’s future actions regarding AGCO’s shares. These strategic moves are expected to streamline AGCO’s operations and potentially impact its market positioning in the agricultural machinery sector.

The most recent analyst rating on (AGCO) stock is a Hold with a $96.00 price target. To see the full list of analyst forecasts on Agco stock, see the AGCO Stock Forecast page.