Agilent Technologies Return On Equity vs. Current Valuation

A Stock  USD 147.37  2.96  2.05%   
Based on Agilent Technologies' profitability indicators, Agilent Technologies' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Agilent Technologies' ability to earn profits and add value for shareholders.

Agilent Technologies Return On Equity

0.1

The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.25, whereas Price To Sales Ratio is forecasted to decline to 2.14. At present, Agilent Technologies' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 1.6 B, whereas Accumulated Other Comprehensive Income is forecasted to decline to (309 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.40.46
Fairly Down
Slightly volatile
Net Profit Margin0.170.16
Notably Up
Slightly volatile
Operating Profit Margin0.190.18
Notably Up
Slightly volatile
Pretax Profit Margin0.190.18
Notably Up
Slightly volatile
Return On Assets0.0520.1
Way Down
Slightly volatile
Return On Equity0.10.19
Way Down
Slightly volatile
For Agilent Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Agilent Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Agilent Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Agilent Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Agilent Technologies over time as well as its relative position and ranking within its peers.
  
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Is Agilent Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Agilent Technologies. If investors know Agilent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Agilent Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
0.911
Earnings Share
4.19
Revenue Per Share
22.967
Quarterly Revenue Growth
(0.06)
The market value of Agilent Technologies is measured differently than its book value, which is the value of Agilent that is recorded on the company's balance sheet. Investors also form their own opinion of Agilent Technologies' value that differs from its market value or its book value, called intrinsic value, which is Agilent Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Agilent Technologies' market value can be influenced by many factors that don't directly affect Agilent Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Agilent Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Agilent Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agilent Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Agilent Technologies Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Agilent Technologies's current stock value. Our valuation model uses many indicators to compare Agilent Technologies value to that of its competitors to determine the firm's financial worth.
Agilent Technologies is number one stock in return on equity category among related companies. It is the top company in current valuation category among related companies reporting about  209,997,886,410  of Current Valuation per Return On Equity. At present, Agilent Technologies' Return On Equity is projected to increase slightly based on the last few years of reporting.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Agilent Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Agilent Technologies' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Agilent Technologies' earnings, one of the primary drivers of an investment's value.

Agilent Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Agilent Technologies

Return On Equity

 = 

Net Income

Total Equity

 = 
0.21
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Agilent Technologies

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
43.99 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Agilent Current Valuation vs Competition

Agilent Technologies is the top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Health Care industry is presently estimated at about 48.99 Billion. Agilent Technologies totals roughly 43.99 Billion in current valuation claiming about 90% of equities under Health Care industry.

Agilent Technologies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Agilent Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Agilent Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Agilent Technologies' change in net profit over the period of time. It can combine multiple indicators of Agilent Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-294.3 M-309 M
Operating Income1.6 B1.6 B
Income Before Tax1.5 B1.6 B
Total Other Income Expense Net29.7 M28.2 M
Net Income1.4 B1.5 B
Income Tax Expense89.1 M106.6 M
Net Income Applicable To Common Shares1.4 B807.6 M
Net Income From Continuing Ops1.4 B838.9 M
Non Operating Income Net Other-27 M-25.6 M
Interest Income45.9 M41.2 M
Net Interest Income-39.6 M-41.6 M
Change To Netincome433.6 M455.2 M
Net Income Per E B T 1.06  0.94 

Agilent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Agilent Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Agilent Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Agilent Technologies' important profitability drivers and their relationship over time.

Use Agilent Technologies in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Agilent Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agilent Technologies will appreciate offsetting losses from the drop in the long position's value.

Agilent Technologies Pair Trading

Agilent Technologies Pair Trading Analysis

The ability to find closely correlated positions to Agilent Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Agilent Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Agilent Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Agilent Technologies to buy it.
The correlation of Agilent Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Agilent Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Agilent Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Agilent Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Agilent Technologies position

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When determining whether Agilent Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Agilent Technologies' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Agilent Technologies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Agilent Technologies Stock:
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For information on how to trade Agilent Stock refer to our How to Trade Agilent Stock guide.
Note that the Agilent Technologies information on this page should be used as a complementary analysis to other Agilent Technologies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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When running Agilent Technologies' price analysis, check to measure Agilent Technologies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Agilent Technologies is operating at the current time. Most of Agilent Technologies' value examination focuses on studying past and present price action to predict the probability of Agilent Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Agilent Technologies' price. Additionally, you may evaluate how the addition of Agilent Technologies to your portfolios can decrease your overall portfolio volatility.
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To fully project Agilent Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Agilent Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Agilent Technologies' income statement, its balance sheet, and the statement of cash flows.
Potential Agilent Technologies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Agilent Technologies investors may work on each financial statement separately, they are all related. The changes in Agilent Technologies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Agilent Technologies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.