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AGCOFRA:AGJ -2.38%76 Return-on-Tangible-Equity is 12.85% as of Mar. 2026, which is 64% below its 10-year median of 35.56. GuruFocus rates FRA:AGJ with a GF Score™ of 76/100 and a GF Value™ of €78.62 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 199 Farm & Heavy Construction Machinery companies, AGCO ranks better than 92.96% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AGCO's annualized net income for the quarter that ended in Mar. 2026 was €190 Mil. AGCO's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €1,480 Mil. Therefore, AGCO's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.85%.
The historical rank and industry rank for AGCO's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AGJ'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -20.19 Med: 35.56 Max: 60.59
Current: 47.31
During the past 13 years, AGCO's highest Return-on-Tangible-Equity was 60.59%. The lowest was -20.19%. And the median was 35.56%.
FRA:AGJ's Return-on-Tangible-Equity is ranked better than 92.96% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.26
vs FRA:AGJ: 47.31
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AGCO Return-on-Tangible-Equity Related Terms
AGCO Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AGCO's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:AGJ vs TEX, FSS, OSK: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, AGCO's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AGCO Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, AGCO's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AGCO's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 12.85% mean?
AGCO (FRA:AGJ) has a Return-on-Tangible-Equity of 12.85% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AGCO and its competitors. This is 64% below median its historical median of 35.56. According to the industry distribution chart, AGCO ranks #14 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 7%.
Is AGCO's Return-on-Tangible-Equity too high?
AGCO's current Return-on-Tangible-Equity of 12.85% is 64% below median its 10-year median of 35.56. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.26. AGCO's value of 12.85% is 38.8% above this industry median. Based on the distribution chart, AGCO ranks #14 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, AGCO has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AGCO's Return-on-Tangible-Equity compare to TEX and FSS?
According to the Farm & Heavy Construction Machinery industry distribution chart, AGCO ranks #14 out of 199 companies for Return-on-Tangible-Equity. This places AGCO in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.26. AGCO's value of 12.85% is 38.8% above this benchmark. While the company's 10-year median is 35.56 vs. the industry median of 9.26, AGCO has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.26, based on 199 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AGCO's current Return-on-Tangible-Equity of 12.85% is 38.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AGCO and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AGCO's current Return-on-Tangible-Equity is 12.85%, which is 64% below median its own 10-year median of 35.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AGCO stock overvalued right now?
Based on GuruFocus' analysis, AGCO (FRA:AGJ) is currently considered Modestly Overvalued. The stock's GF Value™ is €78.62, compared to a current price of €98.50 — trading 25.3% above its estimated fair value. The current Return-on-Tangible-Equity is 12.85%, which is 64% below median its 10-year median of 35.56 and 38.8% above the Farm & Heavy Construction Machinery industry median of 9.26. AGCO's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AGCO (FRA:AGJ), the current Return-on-Tangible-Equity is 12.85% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AGCO (FRA:AGJ) Overvalued in 2026?
Based on GuruFocus' analysis, AGCO stock appears to be overvalued.
The current stock price of €98.50 is trading 25.3% above its estimated GF Value™ of €78.62.
GuruFocus considers AGCO to be Modestly Overvalued.
Key valuation signals for FRA:AGJ:
Return-on-Tangible-Equity: 12.85% (64% below median its 10-year median of 35.56)
GF Value™: €78.62 vs. price of €98.50 (25.3% above fair value)
Industry Position: 38.8% above the Farm & Heavy Construction Machinery median (#14 of 199)
No single metric tells the full story. See the FRA:AGJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Agco is a global manufacturer of agricultural equipment. Its main machine brands are Fendt, Massey Ferguson, and Valtra; its initiatives in precision agriculture have been organized under the PTx umbrella following a series of acquisitions. While a global business, Agco's sales skew heavily toward Europe/Middle East, representing 50%-60% of sales and even more of operating profits. The company is trying to increase its exposure to the larger North and South American markets. Its products are available through a global dealer network, which includes over 3,000 dealers and distribution locations and reaches into over 140 countries. Additionally, Agco offers retail and wholesale financing to customers through its partnership with Rabobank of the Netherlands, having exited their JV in 2026.
76GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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