Agilent Technologies Inc (A, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $137.81, Agilent Technologies Inc has witnessed a daily loss of 1.27%, marked against a three-month change of -2.18%. A thorough analysis, underlined by the GF Score, suggests that Agilent Technologies Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high GF Score of 95 out of 100, Agilent Technologies Inc signals the highest outperformance potential.
Understanding Agilent Technologies Inc Business
Originally spun out of Hewlett-Packard in 1999, Agilent Technologies Inc has evolved into a leading life science and diagnostic firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab consisting of consumables and services related to life science and applied tools, and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, which are considered the stickiest end markets. The company also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. Agilent Technologies Inc is geographically diverse, with operations in the US and China representing the largest country concentrations.
Financial Strength Breakdown
According to the Financial Strength rating, Agilent Technologies Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Agilent Technologies Inc stands impressively at 15.5, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5.
With an Altman Z-Score of 5.31, Agilent Technologies Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.52, Agilent Technologies Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Agilent Technologies Inc's impressive standing among its peers in generating profit. Agilent Technologies Inc's Operating Margin has increased (25.41%) over the past five years, as shown by the following data: 2020: 15.85; 2021: 21.32; 2022: 23.63; 2023: 19.76; 2024: 22.86.
Agilent Technologies Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Agilent Technologies Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 2.8%, which outperforms worse than 58% of 200 companies in the Medical Diagnostics & Research industry.
Moreover, Agilent Technologies Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 3.9, and the rate over the past five years is 11.4. This trend accentuates the company's continued capability to drive growth.
Conclusion
Agilent Technologies Inc's financial strength, profitability, and growth metrics, as highlighted by the GF Score, underscore the firm's unparalleled position for potential outperformance. With a strong balance sheet, impressive profitability, and a commitment to growth, Agilent Technologies Inc is well-positioned to continue its trajectory of success. For investors seeking companies with strong GF Scores, Agilent Technologies Inc presents a compelling case for consideration.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
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.
