Agilent Technologies Inc (A, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $149.45, Agilent Technologies Inc has enjoyed a daily gain of 1.85% and an impressive three-month increase of 14.49%. A detailed analysis, supported by the GF Score, indicates that Agilent Technologies Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For Agilent Technologies Inc, the GF Score is an impressive 94 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 8/10
- GF Value rank: 6/10
- Momentum rank: 8/10
Understanding Agilent Technologies Inc's Business
Agilent Technologies Inc, with a market cap of $42.94 billion and annual sales of $6.497 billion, operates with a robust operating margin of 22.9%. Originally part of Hewlett-Packard, Agilent was spun off in 1999 and has since become a leader in life sciences and diagnostics. The company's technologies are crucial across various sectors, including biopharmaceuticals, environmental testing, and food safety, with significant operations in the U.S. and China.
Financial Strength Breakdown
Agilent Technologies Inc's financial resilience is evident in its Interest Coverage ratio of 17.3 and an Altman Z-Score of 6.35, indicating low risk of financial distress. The company's strategic debt management is reflected in its Debt-to-Revenue ratio of 0.45, showcasing a prudent approach to leveraging growth opportunities while maintaining financial stability.
Profitability and Growth Metrics
Agilent Technologies Inc stands out with a Profitability Rank of 10/10. The company's operating margin has shown consistent improvement over the past five years, highlighting its efficiency in converting sales into actual profits. This trend is complemented by a 3-Year Revenue Growth Rate of 10.5%, which is superior to 62.37% of its industry peers. The growth trajectory is further evidenced by a strong increase in EBITDA, underscoring Agilent's capability to expand its operations effectively.
Conclusion
Considering Agilent Technologies Inc's robust financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
