AGCO Presentation
AGCO Presentation
AGCO Presentation
Background Information
AGCO Background
As a global manufacturer of agricultural equipment, AGCO offers a full line of tractors, combines, hay tools, sprayers, forage and tillage equipment There products are distributed through more than 2,700 independent dealers and distributors in more than 140 countries worldwide. State the desired objectives.
Currently selling at
From a stability perspective (or an EPV valuation focus) the intrinsic value is
$63.88
EPV Definition The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored
From a growth perspective (or a DCF valuation focus) the intrinsic value is
$82.15
DCF Definition A valuation method used to estimate the attractiveness of an investment opportunity.
Competitive Advantage
Highly Competitive Industry over the past 10 years (as shown by major competitors Deere, Caterpillar, CNH Global NV) It's likely that AGCO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely AGCO invests heavily in R&D and Sales, General & Administrative expenses.
Only $2.27 of every $100 of Revenue have been profit, on average over the past 10 years.
They also have inconsistent gross profit with a ninefold increase in gross margin profit (From 18% to 96%
Healthy Industry Demand And Strong Product Line Led To 14 % Year over Year Advance in Sales (Now 2.69 Billion Dollars) 54 Percent of Sales in Europe
Summary Of AGCO
Competitive Advantage:
Situational Play:
Sources
Morningstar ValueLine Vuru Old School Value Software AGCO Corporate Website AGCO 10-K