AGCO Corporation Common Stock (AGCO)

FairStock Score: 69/100 — STEADY

Key Financials

Strengths

• Generates $850 million in annual free cash flow (9.8% yield on market cap)
• Solid return on equity of 16.7% above cost of capital
• Established organization with 22,000 employees providing operational scale

AI Analysis

AGCO Corporation Common Stock is a small-cap industrials company valued at $8.7 billion. The business generates $10.1 billion in annual revenue with a 0.9% net margin and $850 million in free cash flow. From a quality standpoint, AGCO shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is attractively valued at 12.3x earnings, with trades above its Graham Number with a negative 5% margin. Growth dynamics show revenue growing at 1.1% and profit growth of 137.3%. Our composite FairStock Score of 69/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates AGCO's consistent 17% ROE at just 12x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $850 million in annual free cash flow (9.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer