AGCO - Why I'm Not Buying AGCO
Investment Thesis
AGCO’s (AGCO) performance haven’t been promising in last few years. Operating margin and profit margin averaged 6.49% and 4.26%, respectively, while return on invested capital declined sharply. The competitive landscape in the agricultural equipment has hardened over last few years and industry participants like Deere, New Holland, Tafe, CNHI, Kubota, Mahindra and many other makes it harder for AGCO to expand sales penetration. Furthermore, geographical advantages of many of these firms makes it harder for AGCO to penetrate globally. Deploying my expectations for AGCO’s sales and assuming slight adjustments to historical