Agco (AGCO) AI Stock Analysis

• Market Cap: $7.85B
• Dividend Yield: 1.42%
• Average Volume (3M): 756.23K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.97
• Revenue Growth: -20.09%
• EPS Growth: 121.28%
• Country: US
• Employees: 24,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.35
• Shares Outstanding: 74,623,566
• 10 Day Avg. Volume: 837,864
• 30 Day Avg. Volume: 756,230
• PEG Ratio: 0.12
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 23.51
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 20.33
• 1Y Price Target: $117.67
• Price Target Upside: 9.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.96
• Revenue Forecast (FY): $9.83B

• Rating: 59 Neutral
• Price Target: $108.00 ▲(0.68% Upside)

AGCO's overall score reflects a challenging financial performance with declining profitability, offset by strong cash flow management. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock may be overvalued. The earnings call provided some positive strategic insights, but regional challenges and market pressures remain significant concerns.

Positive Factors

Innovation in Precision Agriculture

AGCO's focus on precision agriculture and smart farming solutions positions it as a leader in technological innovation, enhancing long-term competitiveness and market relevance.

Strong Cash Flow Management

Effective cash flow management provides AGCO with a financial buffer, enabling investment in strategic initiatives and sustaining operations despite profitability challenges.

Europe Market Stability

Strong performance in Europe indicates robust demand and market strength, supporting AGCO's revenue base and offsetting regional weaknesses.

Negative Factors

Decline in North America Production

Significant production cuts in North America reflect inventory issues and reduced demand, impacting AGCO's operational efficiency and market presence in the region.

South America Market Decline

Weaker industry demand in South America poses a challenge to AGCO's growth, affecting revenue and necessitating strategic adjustments to stabilize market share.

Pricing Pressures and Tariff Challenges

Increased pricing pressures and tariff challenges could erode margins, necessitating strategic pricing adjustments to maintain competitiveness and profitability.

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 agricultural equipment and machinery. The company's key revenue streams include the sale of new and used equipment, parts, and accessories. Additionally, AGCO offers financing solutions to its customers, which also contributes to its earnings. The company has established significant partnerships with dealers and distributors worldwide, facilitating market access and service delivery. AGCO's commitment to innovation, reflected in its investment in precision agriculture technologies and smart farming solutions, also enhances its competitive edge and revenue potential in the agricultural sector.

Agco Financial Statement Overview

Summary

AGCO's financial performance is mixed. The income statement reveals challenges with declining revenue and profitability, but the balance sheet shows moderate stability with controlled leverage. Cash flow is a strong point, indicating effective cash management despite profitability issues.

Income Statement

AGCO's income statement shows mixed performance. The TTM data indicates a decline in revenue and profitability, with a negative EBIT margin and a low net profit margin of 0.98%. Historical data reveals a downward trend in revenue growth, from a high of 21.73% in 2021 to a negative growth rate in recent periods. Despite this, the company maintained a relatively stable gross profit margin around 24%. The declining revenue and profitability metrics suggest challenges in maintaining growth and operational efficiency.

Balance Sheet

AGCO's balance sheet reflects moderate financial stability. The debt-to-equity ratio has remained relatively stable, indicating controlled leverage. However, the return on equity has significantly decreased from 25.16% in 2023 to 2.51% in the TTM period, highlighting reduced profitability. The equity ratio remains healthy, suggesting a solid asset base. Overall, while leverage is managed well, the decline in ROE is a concern for long-term profitability.

Cash Flow

AGCO's cash flow statement shows positive trends in cash flow generation. The TTM data reveals a strong free cash flow growth rate of 9.01%, and a solid free cash flow to net income ratio of 70.27%. The operating cash flow to net income ratio is also healthy at 25.71%. These metrics indicate effective cash management and the ability to generate cash despite challenges in profitability. The positive cash flow trends provide a buffer against operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.05B	11.66B	14.41B	12.65B	11.14B	9.15B
Gross Profit	2.48B	2.84B	3.74B	2.96B	2.51B	1.99B
EBITDA	510.60M	58.60M	1.69B	1.42B	1.25B	858.90M
Net Income	375.30M	-424.80M	1.17B	889.60M	897.00M	427.10M
Balance Sheet
Total Assets	12.47B	11.19B	11.42B	10.10B	9.18B	8.50B
Cash, Cash Equivalents and Short-Term Investments	884.10M	612.00M	595.00M	787.50M	882.20M	1.11B
Total Debt	2.97B	2.78B	1.53B	1.59B	1.62B	1.74B
Total Liabilities	7.67B	7.15B	6.76B	6.22B	5.74B	5.49B
Stockholders Equity	4.49B	3.74B	4.66B	3.88B	3.42B	2.98B
Cash Flow
Free Cash Flow	749.10M	296.60M	585.00M	449.90M	413.10M	626.60M
Operating Cash Flow	1.02B	689.90M	1.10B	838.20M	682.90M	896.50M
Investing Cash Flow	612.30M	-1.65B	-545.70M	-496.80M	-311.10M	-241.70M
Financing Cash Flow	-1.36B	1.05B	-671.70M	-407.00M	-539.50M	22.70M

Agco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 107.27 is above the 20-day moving average (MA) of 107.03, below the 50-day MA of 107.92, and above the 200-day MA of 102.14, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.11 is Neutral, 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
CAT	76 Outperform	$263.52B	28.89	46.30%	1.03%	-1.51%	-9.69%
TEX	72 Outperform	$3.02B	19.51	7.85%	1.50%	4.60%	-65.73%
OSK	71 Outperform	$7.68B	11.84	15.42%	1.59%	-2.28%	-0.53%
DE	66 Neutral	$126.46B	24.46	21.59%	1.36%	-20.63%	-34.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.85B	20.96	8.69%	1.42%	-20.09%	121.28%
CNH	54 Neutral	$12.08B	20.25	7.77%	2.60%	-18.10%	-65.24%

Agco Corporate Events

AGCO Sells Stake in TAFE for $260 Million

On September 30, 2025, AGCO Corporation completed the sale of its ownership interest in Tractors and Farm Equipment Limited (TAFE) for $260 million, with after-tax proceeds totaling approximately $230 million. This transaction, which was part of a Buyback Agreement initiated on June 30, 2025, also led to the expiration of a Letter Agreement between AGCO and TAFE. The sale marks a significant strategic move for AGCO, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AGCO) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on Agco stock, see the AGCO Stock Forecast page.