📊 AGCO Key Takeaways
Is Agco Corp. /de (AGCO) a Good Investment?
AGCO exhibits severe operational cash flow deterioration (-$410.4M) and dangerously low interest coverage (1.2x) despite $2.3B revenue, indicating potential debt service stress and working capital distress. Poor profitability metrics (1.3% ROE, 2.3% net margin) combined with negative free cash flow (-$455M, -19.4% FCF margin) suggest the company is consuming capital faster than generating returns, posing material solvency risk.
AGCO shows solid underlying fundamentals with healthy free cash flow generation, reasonable leverage, and good returns on equity. However, operating profitability is only moderate for a cyclical industrial business, and the extreme reported revenue growth versus nearly flat net income raises questions about growth quality and comparability of the period.
Why Buy Agco Corp. /de Stock? AGCO Key Strengths
- Maintains positive net income ($55M) with moderate revenue base ($2.3B)
- Moderate leverage with Debt/Equity of 0.58x provides some deleveraging capacity
- Reasonable cash reserves ($514.9M) provide near-term liquidity buffer
- Strong free cash flow of $740.20M and positive operating cash flow support financial flexibility
- Balance sheet appears manageable with 0.56x debt-to-equity, 1.39x current ratio, and 8.7x interest coverage
- Profitability remains respectable with 25.5% gross margin, 7.2% net margin, and 17.0% ROE
AGCO Stock Risks: Agco Corp. /de Investment Risks
- Critical cash burn: negative operating cash flow of -$410.4M indicates core business is not self-funding
- Interest coverage of 1.2x is dangerously low; operating income barely covers debt service, leaving no cushion for downturns
- Weak liquidity with quick ratio of 0.57x and deteriorating cash position unsustainable long-term
- Severely depressed returns (ROE 1.3%, ROA 0.5%) indicate capital inefficiency and operational challenges
- Operating margin of 5.9% leaves limited cushion if agricultural equipment demand weakens
- Quick ratio of 0.67x suggests liquidity depends meaningfully on inventory conversion and working capital management
- Reported revenue growth is unusually large relative to earnings growth, which may indicate weak growth quality or period mismatch in the data
Key Metrics to Watch
- Operating cash flow trajectory and working capital management
- Interest coverage ratio sustainability with current debt levels
- Quarterly liquidity and cash burn rate to assess runway
- Operating margin and gross margin trend
- Free cash flow consistency versus net income
Agco Corp. /de (AGCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Agco Corp. /de presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AGCO Profit Margin, ROE & Profitability Analysis
AGCO vs Industrial Sector: How Agco Corp. /de Compares
How Agco Corp. /de compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Agco Corp. /de Stock Overvalued? AGCO Valuation Analysis 2026
Based on fundamental analysis, Agco Corp. /de shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Agco Corp. /de Balance Sheet: AGCO Debt, Cash & Liquidity
AGCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Agco Corp. /de's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $15.63 reflects profitable operations.
AGCO Revenue Growth, EPS Growth & YoY Performance
AGCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1B | $10.5M | $0.14 |
| Q3 2025 | $2.5B | $30.0M | $0.40 |
| Q2 2025 | $2.6B | -$199.1M | $-2.67 |
| Q1 2025 | $2.1B | $10.5M | $0.14 |
| Q3 2024 | $2.6B | $30.0M | $0.40 |
| Q2 2024 | $3.2B | -$199.1M | $-2.67 |
| Q1 2024 | $2.9B | $168.0M | $2.25 |
| Q3 2023 | $3.1B | $237.9M | $3.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Agco Corp. /de Dividends, Buybacks & Capital Allocation
AGCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Agco Corp. /de (CIK: 0000880266)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AGCO
What is the AI rating for AGCO?
Agco Corp. /de (AGCO) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AGCO's key strengths?
Claude: Maintains positive net income ($55M) with moderate revenue base ($2.3B). Moderate leverage with Debt/Equity of 0.58x provides some deleveraging capacity. ChatGPT: Strong free cash flow of $740.20M and positive operating cash flow support financial flexibility. Balance sheet appears manageable with 0.56x debt-to-equity, 1.39x current ratio, and 8.7x interest coverage.
What are the risks of investing in AGCO?
Claude: Critical cash burn: negative operating cash flow of -$410.4M indicates core business is not self-funding. Interest coverage of 1.2x is dangerously low; operating income barely covers debt service, leaving no cushion for downturns. ChatGPT: Operating margin of 5.9% leaves limited cushion if agricultural equipment demand weakens. Quick ratio of 0.67x suggests liquidity depends meaningfully on inventory conversion and working capital management.
What is AGCO's revenue and growth?
Agco Corp. /de reported revenue of $2.3B.
Does AGCO pay dividends?
Agco Corp. /de pays dividends, with $21.0M distributed to shareholders in the trailing twelve months.
Where can I find AGCO SEC filings?
Official SEC filings for Agco Corp. /de (CIK: 0000880266) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AGCO's EPS?
Agco Corp. /de has a diluted EPS of $0.76.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AGCO a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Agco Corp. /de has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AGCO stock overvalued or undervalued?
Valuation metrics for AGCO: ROE of 1.3% (sector avg: 15%), net margin of 2.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AGCO stock in 2026?
Our dual AI analysis gives Agco Corp. /de a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AGCO's free cash flow?
Agco Corp. /de's operating cash flow is $-410.4M, with capital expenditures of $44.6M. FCF margin is -19.4%.
How does AGCO compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 2.3% (avg: 10%), ROE 1.3% (avg: 15%), current ratio 1.29 (avg: 1.8).