Adecoagro SA (AGRO, Financial), a key player in the Consumer Packaged Goods industry, is currently trading at $9.76 with a market cap of $1.05 billion. The company's stock price has seen a gain of 3.17% today and an increase of 1.78% over the past four weeks. According to GuruFocus, Adecoagro SA has a GF Score of 91 out of 100, indicating the highest outperformance potential. This score is a comprehensive measure of a stock's performance, taking into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
Adecoagro SA's Financial Strength rank stands at 4 out of 10. This rank measures the robustness of a company's financial situation, considering factors such as debt burden, debt to revenue ratio, and Altman Z-Score. Adecoagro SA's interest coverage is 1.58, indicating its ability to cover its interest expenses. The company's debt to revenue ratio is 0.95, suggesting a moderate level of debt relative to its revenue. Its Altman Z-Score is 1.29, which is below the safe zone of 2.99, indicating potential financial distress.
Profitability Rank Analysis
The company's Profitability Rank is 8 out of 10, reflecting a strong profitability profile. The company's operating margin stands at 17.02%, and its Piotroski F-Score is 5, indicating a stable financial situation. The 5-year average trend of the operating margin is 27.20%, suggesting an uptrend in profitability. The company has been profitable for 6 out of the past 10 years, demonstrating consistency in profitability. Its Predictability Rank is 5, indicating a high level of predictability in its business operations.
Growth Rank Analysis
Adecoagro SA has a perfect Growth Rank of 10 out of 10, reflecting strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 10.10%, and its 3-year revenue growth rate is 17.50%. Its 5-year EBITDA growth rate is an impressive 23.30%, indicating robust growth in its business operations.
GF Value Rank Analysis
The company's GF Value Rank is 7 out of 10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Adecoagro SA's Momentum Rank is 9 out of 10, indicating strong momentum in its stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors in the Consumer Packaged Goods industry, Adecoagro SA stands out with its high GF Score. Fresh Del Monte Produce Inc (FDP, Financial) has a GF Score of 73, Dole PLC (DOLE, Financial) has a GF Score of 25, and Mission Produce Inc (AVO, Financial) has a GF Score of 46. This comparison can be found on the competitors page.
Conclusion
In conclusion, Adecoagro SA's high GF Score of 91 indicates a high potential for outperformance. Despite some concerns regarding its financial strength, the company's strong profitability, robust growth, fair valuation, and strong momentum suggest a promising future. Investors should keep a close eye on this stock.
