Quality Investor

AGCO Corporation

Rank #330Value

AGCO · NYSE · Industrials

AGCO Corporation (AGCO) — Rank #330 by gross profitability (GP/assets 0.22) · ROE 17.8% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000880266 · all metrics point-in-time as of the filing date.

About

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

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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

Price History

AGCO+1.9% · +0.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$8.74B

P/E (annual)

12.8

P/S (annual)

0.9

P/B

2.1

P/OCF (annual)

8.8

Shareholder Yield

1.3%

Employees

22,000

Industry

Farm & Heavy Construction Machinery

Exchange

NYSE

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Revenue declining YoYRevenue contracted year over year

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

1.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.3% — per-share value needs a total required return of 1.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.4%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-2.6%

r = 10% (base)

1.3%

r = 12%

4.7%

Net debt / market cap: 23.2%

Note: current FCF margin is 1.9σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $740.2M3Y mean FCF: $540.6M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

14.4xFair
6.9xmed 19.1x37.1x

P / S

Price / revenue per share

1.0xExpensive
0.5xmed 0.7x1.1x

P / B

Price / book value per share

2.4xFair
1.6xmed 2.0x3.3x

P / GP

Price / gross profit per share

4.1xExpensive
2.1xmed 3.3x4.8x

P / FCF

Price / free cash flow per share

14.1xFair
11.0xmed 15.3x33.2x

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

Profitability

Gross profitability (GP / assets)

0.22

Primary signal (Novy-Marx).

26th pctl of 36 SIC 35 peers

Return on equity

17.8%

Gross margin

25.5%

6th pctl of 36 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.84

3rd pctl of 36 SIC 35 peers (best = lowest)

Current ratio

1.32×

17th pctl of 36 SIC 35 peers

Quick ratio

Net cash

-$2.15B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$740.20M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.02

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

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

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Op. Leverage
Capital Return
Decline