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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Agilent Technologies, Inc. (XNYS:A) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
A
Name:
AGILENT TECHNOLOGIES, INC. (XNYS:A)
Sector:
180.00M
Industry:
Diagnostics & Research
CEO:
Mr. Michael McMullen
Total Employees:
17,700
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -94.21% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF AGILENT TECHNOLOGIES, INC.(A) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND DIAGNOSTICS & RESEARCH INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
128.01
One Month Price Target:
$128.78
Six Month Price Target :
$132.61
Likely Price in One Year's Time:
Ticker:
$137.21
Likely Trading Range Today Under (Normal Volatility)
$127.69
Price Upper limit ($) :
$128.54
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$122.96
This week:
$116.71
This month :
$105.42
Other Primary facts
Market Cap:
38.28B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
296.04M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.84%
-9.94%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$151.43
$140.55
$104.59
$115.47
Medium risk (<10%) entry points
Buy Call
Sell Call
$137.01
Buy Put:
Sell Put:
$134.68
$118.98
$121.34
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
A
Sharpe Ratio:
3.71%
Comparison:
A, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 47.26% higher than the industry
& ratio is 62.69% higher than the market/S&P 500 average
Average Returns/Yield of
A
Daily returns:
0.08%
Weekly returns:
0.41%
Monthly returns:
1.63%
Yearly returns:
27.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is -29.87% below industry average
Classification:
A, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.9
Statistical test of Returns:
A has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.96%
Weekly Volatility:
4.39%
Monthly Volatility:
8.77%
Yearly Volatility:
30.38%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.52%
Volatility in last five trading days has been -73.55% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.95%
Weekly VaR:
-8.82%
Monthly VaR:
-17.65%
How Much Can the price of
A
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-15%
Worst case (decline):
-61.13%
This translates to price declining to:
$109.23
This translates to price declining to:
$49.75
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
A is a 24.56% riskier investment compared to the market/S&P 500 & is 6.71% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -49.20% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
A
Beta in relation to market/S&P 500--1.07
Expected beta in 1 year's time:
0.848
Expected beta in 3 year's time:
1.199
Unlevered (debt free) Beta:
0.728
Beta in relation to Nasdaq (XNAS):
0.795
Beta in relation to all global stocks::
0.684
Beta Comparison & Analysis
Beta of competitors/peers::
0.786
Beta is 36.00% higher than peers
Average Industry Beta:
1.181
Beta is -9.47% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
19.43%
Sustainable growth rate is -63.22% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.091
Alpha is -45.42% below industry average alpha yield
Alpha is 579% higher than market/& is unsustainably high
Analysis of Cost of Capital of
A
Equity cost of capital:
0.105
Equity cost of capital is -6.82% below industry mean WACC
Unlevered (without debt) cost of capital:
7.13%
Before-tax cost of debt:
3.08%
After-tax cost of debt:
2.43%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.43%
WACC is -3.65% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$22.05
Revenue growth rate per share of (3Y):
7.35
Annual revenue growth rate is -69.86% below industry average
EPS:
$4.15
Expected Annual growth rate of EPS (3Y):
4.93%
Expected future EPS growth rate is -81.62% lower than the Diagnostics & Research industry
Free cash flow (FCF) per share:
$3.52
Balance sheet equity growth per share: 30.47%
Equity growth rate per share is -1792.37% lower than the industry
Debt per share
$9.22
EBITDA per share
$6.23
Valuation Analysis Today of
A
P/E Ratio:
29.2
P/E Ratio of Competitors/Peers:
41.6
P/E ratio is -29.82% lower than main peers & is -21.46% lower than the industry
Stock price/value with industry average P/E ratio: $154.28
A is -17.03% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $23.92
Present value of the expected future dividends only: $9.46
P/S (Price to Sales ratio):
5.81
Price to sales ratio is -38.90% below the industry mean
P/B (Price to book value ratio):
7.35
Price to free cash flow: 36.41
Price to free cash flow ratio is -18.08% lower than the industry
Net income growth rate (3Y):
304.32%
Net income growth rate is -233.15% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 4.99%
Dividend yeild: 0.63%
Previous Dividend: $0.21
Previous adjusted dividend: $0.21
Previous Dividend: $0.81
Expected next dividend best case: $0.22
Expected next dividend worst case: $0.20
Average dividend payment (long-term): $0.19
Average dividend increase/decrease (growth rate) % per period: 1.78%
Expected next dividend payment date: 26/07/2022
Expected next dividend record date: 07/04/2022
Expected next dividend declaration date: 16/05/2022
Previous dividend payment date: 27/04/2022
Previous dividend record date: 04/05/2022
Previous dividend declaration date: 15/02/2022
Dividend History:
2022-04-04--$0.21
2021-10-04--$0.19
2021-04-05--$0.19
2022-01-03--$0.21
2021-07-02--$0.19
2021-01-04--$0.19
Dividend growth rate is -114.53% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
52.97%
Net debt to equity ratio:
31.37%
Debt to assets ratio:
26.44%
Net debt to assets ratio:
15.66%
Debt-to-asset ratio is -45.60% below industry average
Ability to repay debt:
Interest coverage ratio:
21.94
Interest coverage ratio is -178.22% less than industry average
Looking forward:
Debt growth rate:
15.68%
Annual debt growth is -85% lower than industry average debt growth rate
Debt repayment rate in last quarter: 8.08%
Analysis of Key Statistics
Correlation of price movement with the market:
0.761
Statistical significance of correlation:
A has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.488
Stock price is 56.01% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.488
Correlation of price movement with Nasdaq (^IXIC):
-0.012
Covariance of price movement with the market:
-0.013
Kurtosis
3.475
Returns are, approximately, normally distributed (mesokurtic)
Skewness of returns:
-0.047
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
A
Gross Profit Margin Ratio:
216%
Operating Profit Margin Ratio:
22.48%
Operating profit margin is -119.98% lower than the industry
Net Profit Margin Ratio:
216%
Effective Tax Rate:
11.49%
Effective tax rate is -40.11% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
24.51%
Return on equity (ROE) is 16.64% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
12.23%
Return on assets (ROA) is -104.53% lower than the industry
Financial Leverage:
1.4x
Current Ratio:
2.19
Current ratio is -55.87% below industry average
Cash Conversion Cycle (days):
36.5
Cash conversion cycle is -26.56% below industry average
The remaining useful life of property plant & equipment is: 3.5 years
Stock based compensation to net income ratio:
3.48%
In-depth Efficiency Analysis
Revenue generated per employee:
368.8K
Each employee generates -1% less revenue than industry average revenue per employee
EBITDA generated per employee:
104.1K
Each employee generates 247% more EBITDA than industry average revenue per employee
Profit generated per employee:
71.4K
Each employee generates 346% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
10.2K
Each employee generates -567% less free cash flow than industry average revenue per employee
Assets/Capital per employee
387.2K
Each employee generates -567% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -10.91%
Growth rate in R&D investment/expenditure is 505.92% higher than the industry
Competitors/Peer firms of
A
BAXTER INTERNATIONAL INC. (XNYS:BAX)
Takeda Pharmaceutical Company Limited (XNYS:TAK)
CENTENE CORPORATION (XNYS:CNC)
Alcon Inc. (XNYS:ALC)
IQVIA HOLDINGS INC (XNYS:IQV)
MCKESSON CORPORATION (XNYS:MCK)
VEEVA SYSTEMS INC. (XNYS:VEEV)
METTLER-TOLEDO INTERNATIONAL INC. (XNYS:MTD)
RESMED INC. (XNYS:RMD)
Current Analyst Ratings
Strong buy�29%
Buy�17%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
4/30/22
Revenue:
6.53B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
3.00B
3.52B
461.00M
-
1.60B
-
-
2.06B
3.00M
84.00M
332.00M
1.84B
1.47B
1.26B
1.43B
164.00M
1.26B
Statement of Cash Flow
Date:
Period:
82.00M
Differed Income Tax :
24.00M
Stock Based Compensation :
44.00M
Change in Working Capital :
- 233000.00K
Accounts Receivables:
- 46000.00K
Other Working Capital:
- 170000.00K
Other Non-Cash Items:
55.00M
Net Cash Provided by Operating Activities:
255.00M
Investments in PP&E:
- 75000.00K
Net Acquisitions:
-
Purchases of Investments:
- 3000.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
1/31/22
2022
Q1
1.11B
45.00M
1.16B
1.21B
879.00M
232.00M
3.47B
974.00M
4.89B
929.00M
191.00M
-
795.00M
6.85B
-
10.33B
475.00M
-
-
493.00M
616.00M
1.58B
2.73B
859.00M
3.59B
-
5.17B
3.00M
159.00M
- 298000.0K
5.29B
January 31, 2022 at 7:00:00 AM
5.06B
5.15B
10.33B
236.00M
2.73B
1.6B
-
- 1000.00K
- 79000.00K
- 240000.00K
-
- 447000.00K
- 63000.00K
204.00M
- 546000.00K
- 4000.00K
- 374000.00K
1.12B
1.49B
255.00M
- 75000.00K
180.00M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
A
2023
2024
2025
2026
2027
$162.83
$174.54
$187.08
$200.52
$214.93