AGCO Corp is a Georgia-based maker of agricultural equipment. This is a good play on increased demand for food in the world. Despite the large runup that it has enjoyed in the last year, it is still relatively cheap, compared to others in the sector. It has a P/S of 0.89 and a PEG of 1.34. The P/FCF is appromixately 16, less than the industry and the S & P 500. It has a double digit return on equity. On the negative side, margins have lagged its peers in recent years and it has done a poor job in reducing its tax burden(the rate has actually increased and is well above its peers).
$69.84 (04/18/08)
