10Y annualized return is
very good
at 10.0% per year
A has met or exceeded earnings expectations in
all
recent quarters (10/10)
Moderate Price-to-Earnings Ratio
Strong Price-to-Book Ratio
Strong Return on Equity
Healthy Profit Margins
Strong Current and Quick Ratios
High Interest Coverage
Strong Market Position and Product Demand
Successful Ignite Transformation
Growth in PFAS Market
Positive Outlook for Innovation and Replacement Cycles
High Price-to-Sales Ratio
Elevated EV/EBITDA Ratio
Low Dividend Yield
Moderate Debt Levels
Uncertain Government Funding Impact
Agilent Technologies Inc. demonstrates strong business quality through its market position and successful transformation initiatives. However, it faces future uncertainties related to government funding that could temper growth prospects. Overall, the company appears well-positioned for continued growth driven by product innovation and market demand.
Analysis Date: February 26, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Agilent Technologies, Inc. is a company that makes tools and equipment used in science and healthcare. They create products that help scientists and doctors study living things, test for diseases, and analyze chemicals. Their offerings include machines that analyze DNA, liquids, and other samples, as well as software to help manage data. Agilent sells their products to labs and healthcare facilities around the world, helping improve research and diagnostics.
Streams of revenue
Estimations for reference only
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$170.08
Current Market Price: $103.04
IV/P Ratio: 1.65x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
39.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for A
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (23.32)
P/B ratio ≤ 1.5 (4.87)
Current ratio ≥ 2.0 (2.20x)
Long-term debt < Net current assets (1.50x)
Margin of safety (39.0%)
A does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
20.95%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
53.97%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
19.27%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The return on equity of 20.95% indicates effective management in generating profit from shareholders' equity.
The net profit margin of 19.27% shows the company retains a good portion of revenue as profit, indicating strong operational efficiency.
The dividend yield of 0.76% is relatively low, which may not attract income-focused investors despite the company retaining profits.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.56x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
2.20x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
A current ratio of 2.20 and a quick ratio of 1.66 indicate good short-term liquidity, suggesting the company can cover its short-term liabilities comfortably.
An interest coverage ratio of 32.17 indicates that the company can easily cover its interest obligations, reflecting a strong ability to manage debt.
The debt-to-equity ratio of 0.56 and debt-to-assets ratio of 0.28 suggest moderate debt levels, which could pose risks in adverse economic conditions.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Agilent demonstrated strong demand for its products, particularly with the Infinity III series, which has seen great adoption due to its advanced automation and compatibility with previous models. The company reported a high win rate of over 50% on stimulus-related tenders in China, indicating strong competitive advantages and market positioning.
The Ignite Transformation initiative aims to enhance customer experience, reduce complexity for employees, and deliver shareholder value. Early results show improved pricing mechanisms and a growing digital ecosystem, with digital orders increasing in high-single digits.
The PFAS testing market is experiencing significant growth, with a reported 70% increase in Q1. This demand is driven by regulatory changes and Agilent's strong capabilities in PFAS solutions. The company is positioned to capitalize on expanding opportunities in both environmental and food sectors.
Agilent anticipates a steady replacement cycle driven by the Infinity III and ongoing innovation in instrumentation. The average age of the installed base is older than normal, presenting a significant opportunity for upgrades and new sales.
The company has expressed concerns regarding potential reductions in NIH funding, which could impact growth, although its exposure is limited to about 1% of revenue. This uncertainty has led to a more cautious outlook for the second quarter.
