Agco (AGCO) AI Stock Analysis

• Market Cap: $8.10B
• Dividend Yield: 1.06%
• Average Volume (3M): 713.83K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.14
• Revenue Growth: -23.02%
• EPS Growth: -152.78%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Agricultural - Machinery
• EPS (TTM): 0.41
• Shares Outstanding: 74,586,790
• 10 Day Avg. Volume: 954,299
• 30 Day Avg. Volume: 713,828
• PEG Ratio: -138.75
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.00
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $105.14
• Price Target Upside: -3.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 52 Neutral
• Price Target: $112.00 ▲(3.17%Upside)

AGCO's overall stock score reflects moderate financial performance, with significant challenges in profitability and declining sales. Despite technical indicators showing positive momentum, the negative valuation due to unprofitability weighs heavily. The earnings call suggests strategic focus and some areas of growth, particularly in cash flow and specific markets like Brazil, but significant risks remain.

Positive Factors

Market Recovery

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

Share Repurchases

The announcement that TAFE CEO Mallika Srinivasan will not seek re-election to AGCO's Board of Directors suggests a likely settlement allowing share repurchases.

Trade Deals

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

Negative Factors

Earnings Forecast

AGCO is guiding to a very weak and well-below-consensus Q1 forecast with break-even EPS.

Inventory Levels

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

Market Contraction

The contraction in the market is expected to take longer to play out, making targets challenging to achieve.

Agco Business Overview & Revenue Model

Company Description

AGCO Corporation (NYSE: AGCO) is a global leader in the design, manufacture, and distribution of agricultural equipment and solutions. Founded in 1990, AGCO offers a comprehensive range of machinery, including tractors, combines, hay tools, sprayers, and forage equipment, under well-known brands such as Challenger, Fendt, GSI, Massey Ferguson, and Valtra. The company serves a diverse customer base across the Americas, Europe, and Asia-Pacific, aiming to enhance productivity and sustainability in farming practices through innovative technology and customer-focused solutions.

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 shows declining revenue and net losses, impacting profitability. The balance sheet is stable with low leverage but negative returns. Cash flow is moderately strong, yet underlying profitability issues 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.78B	11.66B	14.41B	12.65B	11.14B	9.15B
Gross Profit	2.62B	2.90B	3.78B	3.00B	2.57B	2.06B
EBITDA	-259.10M	58.60M	1.69B	1.57B	1.30B	904.10M
Net Income	-582.30M	-424.80M	1.17B	889.60M	897.00M	427.10M
Balance Sheet
Total Assets	11.48B	11.19B	11.42B	10.10B	9.18B	8.50B
Cash, Cash Equivalents and Short-Term Investments	562.60M	612.70M	595.50M	789.50M	889.10M	1.12B
Total Debt	3.07B	2.78B	1.53B	1.59B	1.62B	1.74B
Total Liabilities	7.37B	7.15B	6.76B	6.22B	5.74B	5.49B
Stockholders Equity	3.81B	3.74B	4.66B	3.88B	3.42B	2.98B
Cash Flow
Free Cash Flow	501.20M	296.60M	585.00M	449.90M	413.10M	626.60M
Operating Cash Flow	847.70M	689.90M	1.10B	838.20M	682.90M	896.50M
Investing Cash Flow	-1.61B	-1.65B	-545.70M	-496.80M	-311.10M	-241.70M
Financing Cash Flow	-1.09B	1.05B	-671.70M	-407.00M	-539.50M	22.70M

Agco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGCO, the sentiment is Positive. The current price of 108.56 is above the 20-day moving average (MA) of 103.43, above the 50-day MA of 100.21, and above the 200-day MA of 96.37, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 86.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGCO.

Agco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	77 Outperform	$8.02B	13.30	15.24%	1.64%	5.95%	-10.59%
OSK	77 Outperform	$8.02B	13.30	15.24%	1.64%	5.95%	-10.59%
CAT	70 Outperform	$184.13B	19.08	55.67%	1.42%	-5.58%	-7.37%
CAT	70 Outperform	$184.13B	19.08	55.67%	1.42%	-5.58%	-7.37%
Sector *	67 Neutral	€8.08B	19.96	6.46%	2.73%	1.89%	-38.57%
DE	64 Neutral	$141.09B	25.20	24.07%	1.24%	-22.26%	-37.83%
DE	64 Neutral	$141.09B	25.20	24.07%	1.24%	-22.26%	-37.83%
TEX	62 Neutral	$3.22B	13.38	13.85%	1.36%	-2.78%	-51.72%
TEX	62 Neutral	$3.22B	13.38	13.85%	1.36%	-2.78%	-51.72%
CNH	61 Neutral	$16.83B	16.21	13.26%	1.83%	-21.99%	-52.11%
CNH	61 Neutral	$16.83B	16.21	13.26%	1.83%	-21.99%	-52.11%
AGCO	52 Neutral	$8.10B	46.40	-13.60%	1.06%	-23.02%	-152.78%

Agco Corporate Events

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.

AGCO Completes Sale of Grain & Protein Business

On November 1, 2024, AGCO Corporation and its subsidiary Massey Ferguson Corp. completed the sale of the majority of its Grain & Protein business to A-AG Holdco Limited, an affiliate of American Industrial Partners. This divestiture involved brands like GSI, Automated Production, Cumberland, Cimbria, and Tecno. The financial results of the divested business were recast to maintain comparability across AGCO’s segments, impacting the company’s financial statements for 2024 and 2023. This strategic move is likely to influence AGCO’s operational focus and financial reporting, potentially affecting stakeholders and the company’s market positioning.