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AGCO, Agco Corp /de

Farm & Heavy Equipment capital-intensive

AGCO is a global leader in agricultural machinery and precision agriculture technologies.

Driven by a Farmer-First strategy, AGCO delivers value through its differentiated leading brands, Fendt , Massey Ferguson , PTx and Valtra .

AGCO's high-performance equipment and smart farming solutions, including brand-agnostic retrofit technologies and autonomous offerings, empower farmers to drive productivity while sustainably feeding the world.

Latest annual: FY2025 10-K

AGCO · Agco Corp /de

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$10.1B

−13.5% YoY · 2% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $10.4B 5-yr avg $12.0B

Gross margin 25% 5-yr avg 25%

Operating margin 6.0% 5-yr avg 7.1%

ROIC 10% 5-yr avg 16%

Owner-earnings margin 5% 5-yr avg 5%

Free cash flow margin 5% 5-yr avg 4%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by EME (67%) and North America (17%), with 2 more segments behind.
What moves the needle: Gross margin has run about 22% and operating margin about 5.2% through the cycle, a thin spread that turns the result on volume and the cost of what it sells far more than on the price it sets. On a spread this thin the operating result swings hard on small moves in cost or volume — it has ranged from −1.0% to 12% over the years, so the cost line is where the needle moves. Inventory runs near 23% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has sat near the cost of capital (median 10%). By owner earnings: roughly 5% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

EME is 67% of revenue, with North America the other meaningful segment at 17%.

Revenue by reportable segment, FY2025

EME67%$6.7B
North America17%$1.7B
South America11%$1.1B
APA6%$564M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$7.4B	$8.3B	$9.4B	$9.0B	$9.1B	$11.1B	$12.7B	$14.4B	$11.7B	$10.1B	$10.4B	RevenueRevenue
20%	21%	21%	22%	22%	23%	24%	26%	25%	25%	25%	Gross marginGross mgn
12%	12%	11%	12%	11%	10%	9%	10%	12%	13%	13%	SG&A / revenueSG&A/rev
4%	4%	4%	4%	4%	2%	2%	3%	3%	4%	4%	R&D / revenueR&D/rev
$287M	$404M	$489M	$348M	$600M	$1.0B	$1.3B	$1.7B	($122M)	$596M	$627M	Operating incomeOp. inc.
3.9%	4.9%	5.2%	3.9%	6.6%	9.0%	10.0%	11.8%	−1.0%	5.9%	6.0%	Operating marginOp. mgn
$160M	$186M	$286M	$125M	$427M	$897M	$890M	$1.2B	($425M)	$727M	$771M	Net incomeNet inc.
37%	42%	28%	59%	31%	11%	25%	16%	—	—	—	Effective tax rateTax rate
											Cash flow & returns
$370M	$578M	$596M	$696M	$897M	$660M	$838M	$1.1B	$690M	$988M	$790M	Operating cash flowOp. cash
$223M	$223M	$225M	$211M	$213M	$221M	$210M	$230M	$251M	$257M	$263M	DepreciationDeprec.
($32M)	$130M	$39M	$319M	$219M	($485M)	($295M)	($345M)	$845M	($23M)	($275M)	Working capital & otherWC & other
$201M	$204M	$203M	$273M	$270M	$270M	$388M	$518M	$393M	$248M	$244M	CapexCapex
2.7%	2.5%	2.2%	3.0%	2.9%	2.4%	3.1%	3.6%	3.4%	2.5%	2.4%	Capex / revenueCapex/rev
$169M	$374M	$393M	$485M	$684M	$390M	$629M	$873M	$439M	$740M	$546M	Owner earningsOwner earn.
2.3%	4.5%	4.2%	5.4%	7.5%	3.5%	5.0%	6.1%	3.8%	7.3%	5.3%	Owner earnings marginOE mgn
$169M	$374M	$393M	$423M	$627M	$390M	$450M	$585M	$297M	$740M	$546M	Free cash flowFCF
2.3%	4.5%	4.2%	4.7%	6.8%	3.5%	3.6%	4.1%	2.5%	7.3%	5.3%	Free cash flow marginFCF mgn
$384M	$293M	$0	$0	$3M	$23M	$111M	$10M	$1.9B	$0	$0	AcquisitionsAcquis.
$43M	$45M	$47M	$48M	$48M	$359M	$404M	$457M	$273M	$87M	$86M	Dividends paidDiv. paid
$213M	$0	$184M	$130M	$55M	$135M	$0	$53M	$22M	$250M	—	BuybacksBuybacks
5%	5%	9%	5%	12%	23%	21%	26%	-2%	10%	10%	ROICROIC
6%	6%	10%	4%	14%	26%	23%	25%	-11%	17%	18%	Return on equityROE
4%	5%	8%	3%	13%	16%	13%	15%	−19%	15%	16%	Retained to equityRetained/eq
											Balance sheet
$430M	$368M	$326M	$433M	$1.1B	$889M	$790M	$596M	$613M	$862M	$515M	Cash & investmentsCash+inv
$1.5B	$1.9B	$1.9B	$2.1B	$2.0B	$2.6B	$3.2B	$3.4B	$2.7B	$2.7B	$3.0B	InventoryInvent.
$723M	$918M	$866M	$915M	$855M	$1.1B	$1.4B	$1.2B	$813M	$951M	$1.1B	Accounts payablePayables
$792M	$955M	$1.0B	$1.2B	$1.1B	$1.5B	$1.8B	$2.2B	$1.9B	$1.8B	$1.9B	Operating working capitalOper. WC
$3.2B	$3.6B	$3.5B	$3.7B	$4.4B	$5.0B	$5.7B	$6.3B	$5.1B	$5.2B	$5.3B	Current assetsCur. assets
$2.1B	$2.7B	$2.8B	$2.9B	$3.4B	$3.5B	$4.1B	$4.3B	$3.8B	$3.7B	$4.1B	Current liabilitiesCur. liab.
1.5×	1.4×	1.3×	1.3×	1.3×	1.5×	1.4×	1.5×	1.3×	1.4×	1.3×	Current ratioCurr. ratio
$1.4B	$1.5B	$1.5B	$1.3B	$1.3B	$1.3B	$1.3B	$1.3B	$1.8B	$1.9B	$1.9B	GoodwillGoodwill
$7.2B	$8.0B	$7.6B	$7.8B	$8.5B	$9.2B	$10.1B	$11.4B	$11.2B	$11.9B	$12.0B	Total assetsAssets
$1.7B	$1.7B	$1.3B	$1.2B	$1.6B	$1.4B	$1.5B	$1.4B	$2.6B	$2.4B	$2.6B	Total debtDebt
$1.3B	$1.3B	$1.0B	$762M	$464M	$524M	$662M	$797M	$2.0B	$1.6B	$2.1B	Net debt / (cash)Net debt
4.4×	7.4×	7.9×	12.1×	24.1×	39.4×	27.5×	24.7×	—	—	9.1×	Interest coverageInt. cov.
$2.8B	$3.0B	$2.9B	$2.9B	$3.0B	$3.4B	$3.9B	$4.7B	$3.7B	$4.3B	$4.3B	Shareholders’ equityEquity
0.2%	0.5%	0.5%	0.5%	0.4%	0.2%	0.3%	0.3%	0.2%	0.3%	0.3%	Stock comp / revenueSBC/rev
—	—	—	$174M	$20M	—	—	—	$354M	—	$354M	Goodwill written downGW imp.
											Per share
81.7M	80.2M	79.7M	77.0M	75.6M	75.7M	74.9M	74.9M	74.7M	74.5M	72.7M	Shares out (diluted)Shares
$90.70	$103.57	$117.34	$117.42	$121.03	$147.14	$168.91	$192.42	$156.12	$135.33	$142.70	Revenue / shareRev/sh
$1.96	$2.32	$3.58	$1.63	$5.65	$11.85	$11.88	$15.64	$-5.69	$9.75	$10.61	EPS (diluted)EPS
$2.06	$4.66	$4.93	$6.30	$9.05	$5.16	$8.39	$11.65	$5.87	$9.94	$7.50	Owner earnings / shareOE/sh
$2.06	$4.66	$4.93	$5.49	$8.29	$5.16	$6.01	$7.81	$3.97	$9.94	$7.50	Free cash flow / shareFCF/sh
$0.52	$0.55	$0.59	$0.62	$0.63	$4.74	$5.40	$6.11	$3.66	$1.16	$1.18	Dividends / shareDiv/sh
$2.46	$2.54	$2.55	$3.55	$3.57	$3.56	$5.18	$6.92	$5.27	$3.33	$3.36	Cap. spending / shareCapex/sh
$33.98	$37.78	$36.80	$37.06	$39.42	$45.12	$51.83	$62.17	$50.10	$57.36	$59.10	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+4.5%/yr	+2.3%/yr
Owner earnings / share	+19.1%/yr	+1.9%/yr
EPS	+19.5%/yr	+11.5%/yr
Dividends / share	+9.3%/yr	+12.8%/yr
Capital spending / share	+3.4%/yr	−1.4%/yr
Book value / share	+6.0%/yr	+7.8%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue-13.5%
“Net sales for 2025 were $10,082.0 million, or 13.5% lower than 2024, primarily due to lower sales volumes resulting from softer industry sales reflecting lower end market demand and the divestiture of the majority of the Company's G&P business on November 1, 2024, partially offset by favorable currency impacts.”
✓ figure matches the filed record
North America-27.5%
“North America Years Ended December 31, Change 2025 2024 $ Net sales $ 1,665.5 $ 2,298.3 $ (632.8) Income (loss) from operations (112.0) 84.0 (196.0) Net sales in North America decreased in 2025 compared to 2024, primarily due to sales volume declines, most significantly in high-horsepower tractors, sprayers, hay tools and combines.”
✓ direction matches the filed record
South America-7.7%
“South America Years Ended December 31, Change 2025 2024 $ Net sales $ 1,115.6 $ 1,208.5 $ (92.9) Income from operations 51.4 87.0 (35.6) Net sales decreased in South America in 2025 compared to 2024, primarily due to sales volume declines, most significantly in tractors and implements, negative pricing impacts and unfavorable foreign currency translation.”
✓ direction matches the filed record

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

75Mpeak FY2016

ROIC

10%low FY2024

Gross margin

25%low FY2016

Net debt ÷ owner earnings

2.1×peak FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$740Mowner earningsvs.$727Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $727M of profit into $740M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$727M

Owner earnings$740M · 7% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$727M	($425M)	$1.2B	$890M	$897M
Depreciation & amortizationnon-cash charge added back	+$257M	+$251M	+$230M	+$210M	+$221M
Stock-based compensationreal costnon-cash, but a real cost	+$28M	+$18M	+$46M	+$34M	+$27M
Working capital & othertiming of cash in and out, other non-cash items	−$23M	+$845M	−$345M	−$295M	−$485M
Cash from operations	$988M	$690M	$1.1B	$838M	$660M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$248M	−$251M	−$230M	−$210M	−$270M
Owner earnings	$740M	$439M	$873M	$629M	$390M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	−$142M	−$288M	−$179M	—
Free cash flow	$740M	$297M	$585M	$450M	$390M
Owner-earnings marginowner earnings ÷ revenue	7%	4%	6%	5%	4%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $28M), owner earnings is nearer $712M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 8.7×

Comfortable

Operating income $596M ÷ interest expense $69M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $1.6B · 2.7× operating profit

Meaningful net debt

Cash $862M − debt $2.4B

What this means
Netting $862M of cash and short-term investments against $2.4B of debt leaves $1.6B owed, about 2.7× a year's operating profit (4.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 9%

Solid through the cycle

10-yr median, range -2%–26%; 10% latest = NOPAT $596M ÷ invested capital $5.9B

Industry peers: median 9%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 10% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 4%

Thin through the cycle

10-yr median margin, range 2%–7%; latest $740M = operating cash $988M − maintenance capex $248M

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 4% median across 10 years. Treating stock comp as the real expense it is (less $28M of SBC) leaves $712M.
Are earnings backed by cash? 1.36×

Cash-backed

Cash from ops $988M ÷ net income $727M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 45%

Returns about half

Dividends + buybacks $337M ÷ Owner Earnings $740M

What this means
Of $740M Owner Earnings, $337M (45%) went back to shareholders, $87M dividends, $250M buybacks. Net of $28M stock comp, the real buyback was about $222M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.97×

Maintaining

Capex $248M ÷ depreciation $257M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $10.1B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.39×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $2.4B vs $1.5B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +133%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $6.78/share (latest year $10.03), the averaged base the calculator's gate runs on, and book value is $59.02/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 3 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 5% → 6% (3-yr avg ends)

In the filing’s words The filing claims pricing power in its strongest form — price raised, volume held — yet the margin here has not widened to match. The claim leads the record; weigh them together.

What this means
Through the cycle the operating margin held roughly steady — about 5% early, 6% lately, median 5%.
Reinvestment, incremental ROIC 24%

What this means
Every extra dollar the business reinvested came back at a high incremental return — the lens GBM read for a moat that reinvests rather than merely harvests. The record and the 10-K are where you check whether the rate holds.
Owner earnings growth +9%/yr

What this means
Owner earnings grew about 9% a year over the record.
Worst year 2024 · −1.0% op. margin

What this means
Operations went underwater in 2024, understand why before trusting the good years.
Share count −1.0%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Our competitors and other third parties may incorporate artificial intelligence into their operations and processes more quickly or more successfully than us, which could impair our ability to compete effectively.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$5.3B

Cash & short-term investments$515M
Inventory$3.0B
Other current assets$1.8B

Current liabilities$4.1B

Debt due within a year$556M
Accounts payable$1.1B
Other current liabilities$2.5B

Current ratio1.29×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.57×stricter: inventory excluded

Cash ratio0.12×strictest: cash alone against what's due

Working capital$1.2Bthe cushion left after near-term bills

Debt due this year vs. cash$556M due · $515M cash cash alone won't cover the maturities; it leans on refinancing or operating cash · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+14.3%the freshest read on whether the business is still growing

Current ratio, recent quarters1.5× → 1.3×

Deeper floors

Tangible book value$1.7Bequity stripped of goodwill & intangibles

Net current asset value($2.1B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$2.7B$164M of it operating leases

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'27$397M

'28$739M

'29$293M

'30$199M

later$695M

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$397Mthe first rung: what must be repaid or rolled over within the year

Within two years$1.1Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$739Min 2028the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$2.3Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Mar 31, 2026$515M

One year of owner earnings (FY2025)$740M

Together, against $397M due next year3.2×

Cash on hand as of Mar 31, 2026 plus a year’s owner earnings comes to $1.3B against the $397M due in the twelve months after the Dec 31, 2025 schedule: 3.2 times it.

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the balance-sheet debt.

How the cash was used, 2016–2025

Over the record, the business generated $7.4B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$3.0B · 40%
Dividends$1.8B · 24%
Buybacks$1.0B · 14%
Retained (debt / cash)$1.6B · 22%

Returned to owners$2.9B
55% of the owner earnings the business produced over the span, $1.8B as dividends and $1.0B as buybacks.
Average price paid for buybacks—
Buybacks ran $1.0B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−11.0%
The diluted count fell from 82M to 73M, so the buybacks outran the stock issued to staff.
Dividend record$1.16/sh
Paid in 10 of the years on record, the per-share dividend growing about 9% a year. It was cut at least once along the way.
Return on what it retained23%
Of the earnings it kept rather than paid out ($1.6B over the span), annual owner earnings (first three years vs last three) grew $372M, so each retained $1 added about 0.23 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$2.6B22% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity44%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$2.7Bover 10 years buying other businesses, against $3.0B of capital spent building

$548M written down across 3 years (2019, 2020, 2024): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 20% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Eric P. Hansotia	$11.2M	$11.6M	$390M
2022	Eric P. Hansotia	$13.4M	$25.1M	$629M
2023	Eric P. Hansotia	$17.3M	$17.7M	$873M
2024	Eric P. Hansotia	$14.7M	−$7.6M	$439M
2025	Eric P. Hansotia	$19.7M	$23.9M	$740M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio313:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$28M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 5% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Agco Corp /de is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid receivables and inventory outpace sales?20% → 29% of sales
Receivables and inventory grew from $1.5B to $3.0B while revenue grew 40%: working capital is climbing faster than sales (20% of revenue then, 29% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?6 of 10 years
Management took an impairment or write-down in 6 of the last 10 years, $593M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Pension & retirement, Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Farm & Heavy Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
DEDeere & Company	$45.7B	56%	12.9%	11%	12%
AGCOAgco Corp /de	$10.1B	23%	5.6%	10%	5%
FTITechnipFMC plc Ordinary Share	$9.9B	16%	7.0%	4%	6%
XYLXylem Inc. Common Stock New	$9.0B	38%	11.3%	9%	10%
NOVNOV Inc.	$8.7B	16%	0.0%	-1%	7%
DOVDover Corporation	$8.1B	37%	14.8%	13%	11%
IRIngersoll Rand Inc.	$7.7B	39%	12.4%	6%	15%
TTCToro	$4.5B	34%	12.7%	23%	11%
Group median	—	36%	11.8%	9%	11%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Agco Corp /de has delivered.

Agco Corp /de’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Agco Corp /de earns about $477M on its 4.7% median owner-earnings margin. This year’s 7.3% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($477M) Net of stock comp (−$32M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+4%/yr

Owner-earnings growth · ’16→’25+7%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $546M on 72M shares outstanding, per the 10-Q cover, as of 2026-04-30; net debt $2.1B. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh AGCO against another business →

The owners of AGCO: the meeting and the votes →

Cite: Owner Scorecard, "Agco Corp /de (AGCO), the owner's record," https://ownerscorecard.com/c/AGCO, data as of 2026-07-09.

Manual order: ← AFRM its page in the Manual AGIO →

Industry order: ← AEBI the Farm & Heavy Equipment chapter ALG →