EdgeScore

AGCO · NYSE · CIK 880266

AGCO CORP /DE

Industry: MachineryPeriod: last 5 years

Stage 1 · Must have

5/7

6 of 7 needed

Stage 2 · Refinement

36%

70% needed

Verdict

Financially weak

Rules v1.0.0

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Stage 1 · Must have

5 of 7 passed · at least 6 needed

  • Debt / Equity

    Financial debt compared with shareholders' equity

    Pass
    0.57Threshold < 1FY 2025

    Debt / equity: 0.57 in 2025, below the limit of 1. The company relies more on shareholders' money than on borrowing, which leaves room to absorb a weak year.

    S1.1 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Gross margin vs. industry

    Gross profit as a share of revenue, compared with peers

    Fail
    25.5%Threshold >= 36.1% (median 35.1% + 1 pp)FY 2025

    Gross margin: 25.5% in 2025, against a median of 35.1% for Machinery (71 companies). The company keeps less of each unit of revenue after direct costs than the bar set by its peers. Its products may face stronger competition or higher production costs.

    Compared with 71 companies in Machinery. Peer median 35.1%.

    S1.2 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Operating cash flow vs. net income

    Cash from operations over reported profit, last 3 years

    Pass
    188.8%Threshold > 100% (3-year sums)FY 2025

    Operating cash flow vs. net income: 189% over 2023-2025. The business brings in more cash than the profit it reports, a sign that its earnings are backed by real money.

    S1.3 · 3 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • Free cash flow vs. net income

    Cash left after investment over reported profit, last 3 years

    Pass
    110.1%Threshold > 80% (3-year sums); 70-80% is closeFY 2025

    Free cash flow vs. net income: 110% over 2023-2025. After paying for investment, the company still turns most of its profit into cash it can actually use.

    S1.4 · 3 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • ROIC stable and rising

    Return on invested capital over 5 years

    Fail
    8.1%Threshold >= 15.3% (median 16.3% - 1 pp) and >= 11.5% (2020 + 0.5 pp)FY 2025

    ROIC: 8.1% in 2025, against a median of 16.3% over 2020-2025 and 11.0% in 2020. The latest return is below its own recent median, so the company earns less on its capital than it usually does.

    S1.5 · 6 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • Return on equity vs. industry

    Net income over shareholders' equity, compared with peers

    Pass
    17.0%Threshold >= 13.0% (median 12.0% + 1 pp)FY 2025

    Return on equity: 17.0% in 2025, against a median of 12.0% for Machinery (71 companies). The company earns more on its shareholders' capital than most of its peers. High returns are worth reading together with debt, since borrowing can lift this ratio.

    Compared with 71 companies in Machinery. Peer median 12.0%.

    S1.6 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Positive EBITDA

    Operating profit before depreciation and amortization

    Pass
    $852MThreshold > 0FY 2025

    EBITDA: USD 852.2 million in 2025. The core business makes money before depreciation, interest and tax, so day-to-day operations pay for themselves.

    S1.7 · Source: 2025 annual report, SEC EDGAR · Original filing

Company snapshot

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Stage 2 · Refinement

4 of 11 applicable passed · at least 70% needed

36%70% threshold
  • SG&A stable or falling

    Overhead costs as a share of revenue, over 5 years

    Fail
    13.0%Threshold <= 11.0% (median 10.5% + 0.5 pp)FY 2025

    SG&A: 13.0% of revenue in 2025, above its median of 10.5% over 2020-2025. Overhead costs are taking a larger share of revenue than usual, which squeezes profit.

    S2.1 · 6 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • Interest coverage

    Operating income over interest expense

    Pass
    n/aThreshold > 5FY 2025

    No interest expense is reported for 2025, while operating income is positive. Interest costs are not a burden on the business.

    S2.2 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Net margin vs. industry

    Net income as a share of revenue, compared with peers

    Fail
    7.2%Threshold >= 9.0% (median 8.0% + 1 pp)FY 2025

    Net margin: 7.2% in 2025, against a median of 8.0% for Machinery (71 companies). After all costs, interest and tax, the company keeps less of its revenue as profit than the bar set by its peers.

    Compared with 71 companies in Machinery. Peer median 8.0%.

    S2.3 · Source: 2025 annual report, SEC EDGAR · Original filing

  • ROA vs. industry

    Net income over total assets, compared with peers

    Fail
    6.1%Threshold >= 7.0% (median 6.0% + 1 pp)FY 2025

    Return on assets: 6.1% in 2025, against a median of 6.0% for Machinery (71 companies). The company produces less profit from the assets it holds than the bar set by its peers.

    Compared with 71 companies in Machinery. Peer median 6.0%.

    S2.4 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Current ratio

    Current assets over current liabilities

    Fail
    1.39Threshold > 1.5FY 2025

    Current ratio: 1.39 in 2025, at or below 1.5. The cushion of short-term assets over bills due within a year is thin, although some business models run this way on purpose.

    S2.5 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Total assets growing, 5 years

    Average yearly growth of total assets

    Pass
    7.0%Threshold average growth > 0%, at most 1 year with a drop over 3%FY 2025

    Total assets grew 7.0% a year on average over 6 annual reports, with 0 years of decline beyond 3%. The company has been building its asset base steadily.

    S2.6 · 6 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • Free cash flow CAGR, 5 years

    Average yearly growth of free cash flow

    Fail
    3.4%Threshold >= 5% a yearFY 2025

    Free cash flow changed 3.4% a year from 2020 to 2025, below the 5% bar. The cash left after investment is not growing much.

    S2.7 · 6 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

  • Quick ratio

    Current assets excluding inventory over current liabilities

    Fail
    0.67Threshold > 1FY 2025

    Quick ratio: 0.67 in 2025, at or below 1. Without its inventory, the company would not cover all the bills due within a year from short-term assets.

    S2.8 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Net debt / EBITDA

    Years of operating profit needed to repay net debt

    Pass
    1.9xThreshold < 3FY 2025

    Net debt / EBITDA: 1.9x in 2025. Debt net of cash could be repaid from less than three years of operating profit, a manageable load.

    S2.9 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Positive free cash flow

    Operating cash flow minus capital expenditure

    Pass
    $740MThreshold > 0FY 2025

    Free cash flow: USD 740.2 million in 2025. The business generated more cash than it spent on investment, money it can use for debt, dividends or growth.

    S2.10 · Source: 2025 annual report, SEC EDGAR · Original filing

  • Revenue CAGR, 5 years

    Average yearly growth of revenue

    Fail
    2.0%Threshold >= 7% a yearFY 2025

    Revenue changed 2.0% a year from 2020 to 2025, below the 7% bar. Sales are growing slowly or shrinking.

    S2.11 · 6 annual reports used · Source: 2025 annual report, SEC EDGAR · Original filing

Indicator guide

Debt / Equity
Financial debt divided by shareholders' equity shows how much of the business is funded by lenders. Below 1 means owners fund more of the company than creditors do.
Gross margin vs. industry
Gross margin is the share of revenue left after the direct cost of products and services. Beating the industry median by at least one point suggests pricing power or a cost advantage.
Operating cash flow vs. net income
Compares three years of operating cash flow with three years of reported profit. Above 100% means accounting profit is fully backed by cash coming in.
Free cash flow vs. net income
Free cash flow is operating cash flow minus capital spending, compared with profit over three years. Above 80% means most of the profit is cash the company can actually use.
ROIC stable and rising
Return on invested capital measures the profit earned on all money invested in the business, by owners and lenders. The latest value must hold near its five-year median and be higher than five years ago.
Return on equity vs. industry
Return on equity is net income divided by shareholders' equity. It is compared with the industry median because normal levels differ a lot between industries.
Positive EBITDA
EBITDA is operating profit before interest, taxes, depreciation and amortization. A positive value means the core business earns money before financing and accounting charges.
SG&A stable or falling
Selling, general and administrative costs as a share of revenue show how heavy the overhead is. Staying at or below the five-year median means costs are under control.
Interest coverage
Operating income divided by interest expense shows how easily the company pays its lenders. Above 5 leaves a wide safety margin if profits fall.
Net margin vs. industry
Net margin is the share of revenue that ends up as net profit. It is compared with the industry median to account for different business models.
ROA vs. industry
Return on assets is net income divided by total assets. It shows how efficiently the company turns everything it owns into profit, compared with its peers.
Current ratio
Current assets divided by current liabilities measures the ability to pay bills due within a year. Above 1.5 indicates a comfortable short-term buffer.
Total assets growing, 5 years
Checks that total assets grew on average over five years, with at most one sharp annual decline. The allowed decline depends on the sector, and the check is skipped for software companies.
Free cash flow CAGR, 5 years
The average yearly growth rate of free cash flow over five years. At least 5% a year shows the cash a business produces is growing.
Quick ratio
Like the current ratio, but without inventory, which can be slow to turn into cash. Above 1 means short-term debts are covered by the most liquid assets.
Net debt / EBITDA
Financial debt minus cash, divided by EBITDA, estimates how many years of operating earnings would repay the debt. Below 3 is generally considered manageable.
Positive free cash flow
Free cash flow in the latest year must be above zero. It means operations fund investment without new debt or new shares.
Revenue CAGR, 5 years
The average yearly growth rate of revenue over five years. At least 7% a year points to a business that keeps expanding.

Data source: SEC EDGAR, company annual reports. Original 10-K (FY 2025). Last updated Oct 29, 2026. Latest fiscal year ends Dec 31, 2025.

How the score works: EdgeScore methodology. Rules version 1.0.0.

For information and education only. Not investment advice. Data may contain errors.