Quality Investor

AGCO Corporation

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AGCO · NYSE · Industrials

AGCO Corporation (AGCO) — Rank #315 by gross profitability (GP/assets 0.22) · ROE 17.8% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · CIK 0000880266 · all metrics point-in-time as of the filing date.

About

AGCO Corporation manufactures and distributes agricultural equipment and replacement parts worldwide.

Show more

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 systems; 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 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, including 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 Fendt, Massey Ferguson, PTx, and Valtra brands through a network of independent dealers and distributors.

AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

Industry
Farm & Heavy Construction Machinery
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

22,000

Industry

Farm & Heavy Construction Machinery

Exchange

NYSE

11/12

Flags passed

AGCO fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.22
Return on equity
17.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.84
Current ratio
1.32×
Net cash
-$2.15B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

1/2 pass
Revenue growth
-13.5%
Piotroski F-Score
8 / 9
Share dilution
-0.3%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 28th percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

28th pctl of 26 SIC 35 peers

Return on equity

17.8%

Gross margin

25.5%

4th pctl of 26 SIC 35 peers

Revenue growth (YoY)

-13.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-7.3%

Revenue CAGR (5Y)

2.0%

Earnings CAGR (3Y)

-6.5%

FCF CAGR (3Y)

18.1%

Cash Flow Health

Is the cash real?

No warning flags · FCF 2% above net income

Free cash flow

$740.20M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

1.9%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $2.15B, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.84

0th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

1.32×

16th pctl of 26 SIC 35 peers

Quick ratio

—

Net cash

-$2.15B

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

2.8 / 5

Fair
Payout ratio
11.9%5/5 Strong
FCF coverage
8.56×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.84 · IC N/A1/5 Weak

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend(net buybacks)
-0.3%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory(deleveraging)
3.8%4/5 Strong

Lifecycle Phase History

20202025
Value
Op. Leverage
Capital Return
Decline

Price History

AGCO+8.0% · +1.5% CAGRSPY+82.9% · +12.8% CAGR