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Founded in 1990 and headquartered in Duluth, Georgia, Agco (AGCO) is a leading global manufacturer and distributor of agricultural equipment and precision agriculture technology. Agco operates across approximately 140 countries and offers a diverse range of products.

They include high-horsepower tractors for large-scale farming operations, utility and compact tractors for smaller farms, and specialized equipment for various agricultural industries. The company also provides combines, hay tools, forage equipment, grain storage systems, and precision agriculture solutions to enhance farming efficiency and sustainability.

The company markets its products under several well-known brands, such as Fendt, MasseyFerguson, Valtra, and Precision Planting. These brands cater to different market segments.

Agco faces competition from several key players in the agricultural machinery industry, primarily Deere & Co. (DE) and CNH Industrial NV (CNH), which offer similar products and services. Agco’s strength lies in its comprehensive range of products and its focus on precision agriculture technology.

The ROIC, FCFY, and PVR are 8%, 0%, and 1%, respectively. Economic Earnings are $0.02 vs. $14.79 reported (GAAP). Economic Book Value = $102.20 per share.

Recommended Action: Buy AGCO.

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