Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

AGCO Corporation (AGCO)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$96.33 - $211.99$138.56
Multi-Stage$99.99 - $109.59$104.70
Blended Fair Value$121.63
Current Price$107.07
Upside13.60%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS41.58%20.94%3.666.125.414.800.640.640.630.600.570.56
YoY Growth---40.29%13.13%12.78%646.88%0.00%1.91%5.84%4.71%1.19%2.94%
Dividend Yield--3.95%5.08%4.00%3.29%0.45%1.36%0.90%0.92%0.95%1.13%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)375.30
(-) Cash Dividends Paid (M)86.50
(=) Cash Retained (M)288.80
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)75.0646.9128.15
Cash Retained (M)288.80288.80288.80
(-) Cash Required (M)-75.06-46.91-28.15
(=) Excess Retained (M)213.74241.89260.65
(/) Shares Outstanding (M)74.7074.7074.70
(=) Excess Retained per Share2.863.243.49
LTM Dividend per Share1.161.161.16
(+) Excess Retained per Share2.863.243.49
(=) Adjusted Dividend4.024.404.65
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate3.22%4.22%5.22%
Fair Value$96.33$138.56$211.99
Upside / Downside-10.03%29.41%97.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)375.30391.15407.66424.87442.81461.51475.35
Payout Ratio23.05%36.44%49.83%63.22%76.61%90.00%92.50%
Projected Dividends (M)86.50142.53203.13268.60339.23415.35439.70

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.53%7.53%7.53%
Growth Rate3.22%4.22%5.22%
Year 1 PV (M)131.28132.55133.82
Year 2 PV (M)172.33175.68179.07
Year 3 PV (M)209.88216.04222.32
Year 4 PV (M)244.15253.75263.63
Year 5 PV (M)275.33288.93303.06
PV of Terminal Value (M)6,436.046,753.907,084.19
Equity Value (M)7,469.017,820.858,186.09
Shares Outstanding (M)74.7074.7074.70
Fair Value$99.99$104.70$109.59
Upside / Downside-6.62%-2.22%2.35%

High-Yield Dividend Screener

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