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AGRO Adecoagro S.A. - Fundamental Analysis

BEARISH
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AGRO Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Defensive Farm Products
Current Price Live
$8.93
Analyst Target
$10.25
+14.8% Upside
52W High
$11.79
52W Low
$6.89

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Confidence Score
85%
Analysis Accuracy
The deterministic health scores paint a concerning picture, with a Piotroski F-Score of 4/9 indicating marginal financial stability and no available Altman Z-Score to confirm safety from distress. Despite trading above the Graham Number of $8.42 at $8.93, the company faces severe profitability and growth headwinds, including a -35.5% YoY revenue decline and -65.6% earnings drop. Margins are thin, ROE and ROA are below sector averages, and the dividend is unsustainable with a 149% payout ratio. While the technical trend shows a short-term bounce, fundamental deterioration dominates the outlook.

Key Strengths

Current ratio of 2.80 indicates strong short-term liquidity
Stock trades close to Graham Number ($8.42) suggesting limited downside in defensive valuation terms
Recent 1-month price appreciation of +12.5% shows potential short-term momentum
Dividend yield of 3.92% is attractive relative to sector peers
Price/Book of 0.65 suggests shares trade below book value, implying possible asset-based margin of safety

Key Risks

Piotroski F-Score of 4/9 signals weak financial health with risk of further deterioration
Severe revenue and earnings contraction: -35.5% YoY revenue growth and -65.6% YoY earnings growth
Unsustainable dividend payout ratio of 149.15%, threatening future distributions
High debt/equity ratio of 1.12, above peer average of 0.63, increasing financial risk
Extreme earnings volatility and negative surprises in recent quarters, including -168% miss in Aug 2025
AI Fair Value Estimate
Based on comprehensive analysis
$7.5
-16.0% below current price

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