Skip to Content

AGCO Corp AGCO

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Agco Posts Solid Q2 Results as Agriculture Markets Continue to Be Above Midcycle

Dawit Woldemariam Equity Analyst

Analyst Note

| Dawit Woldemariam |

Agco reported second-quarter results that were above our expectations, leading us to raise our fair value estimate to $116 from $110. The changes to our valuation were primarily focused on near-term revenue, as Agco posted strong top-line growth in the quarter, up 43% year on year. We now expect sales to reach close to $11.4 billion (24% growth in 2021), which is at the midpoint of management’s guidance ($11.3 billion to $11.5 billion). The company saw strong growth across its regions globally, with South America up the highest. The region surged 53% compared with the prior-year quarter on stronger demand for agricultural equipment in Brazil (up over 65% year on year).

Read Full Analysis

Company Profile

Business Description

Agco is a global manufacturer of agricultural equipment. The company has five principal brands: Fendt, Massey Ferguson, Challenger, Valtra, and GSI. Unlike its competitors, Agco's product line extends beyond self-propelled equipment and implements by offering grain handling systems and livestock management solutions. Its products are available through a global dealer network, which includes over 3,200 dealer and distribution locations. Additionally, Agco offers both retail and wholesale financing to customers through its joint venture with Rabobank, a European food and agriculture focused bank.

Contact
4205 River Green Parkway
Duluth, GA, 30096
T +1 770 813-9200
Sector Industrials
Industry Farm & Heavy Construction Machinery
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 21,400

Related