AGROAdecoagro S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.3×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AGRO?
Adecoagro S.A. earns 7.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.3 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Farm Products median 1.7% · fiscal year to FY2024
- Cash conversion
- 2.28×
Cash conversion · 2.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2019 | 14% |
| FY2020 | 23% |
| FY2021 | 25% |
| FY2022 | 19% |
| FY2023 | 19% |
| FY2024 | 12% |
Details›
- Gross marginfiscal year to FY2024
- 29%
- Operating marginfiscal year to FY2024
- 12%
- Net marginfiscal year to FY2024
- 6.1%
- Free cash flow margin
- 4.5%
- Revenue, trailing twelve months
- $1.52B
- Free cash flow, trailing twelve months
- $68M
- Net income, trailing twelve months
- $92M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.