Is AGCO CORP /DE (AGCO) Halal?

NYSE Industrials United States $8.2B
✓ HALAL
Confidence: 95/100
AGCO CORP /DE (AGCO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 27.7% against the AAOIFI threshold of 30%, AGCO CORP /DE comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Farm & Heavy Construction Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 27.7%
/ 30%
9.3%
/ 30%
11.7%
/ 30%
0.56%
/ 5%
✓ HALAL
DJIM 27.7%
/ 33%
9.3%
/ 33%
11.7%
/ 33%
0.56%
/ 5%
✓ HALAL
MSCI 21.5%
/ 33%
7.2%
/ 33%
9.0%
/ 33%
0.56%
/ 5%
✓ HALAL
S&P 27.7%
/ 33%
9.3%
/ 33%
11.7%
/ 33%
0.56%
/ 5%
✓ HALAL
FTSE 21.5%
/ 33%
7.2%
/ 33%
9.0%
/ 50%
0.56%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
11.6
Forward: 14.0
EPS
$9.75
Dividend Yield
102.0%
Payout: 11.9%
P/B Ratio
1.9
EV/EBITDA
10.1
EV: $10.3B
Revenue
$10.1B
Growth: 1.1%
Beta
1.1
Average volatility
Current Ratio
1.4

Profitability

Gross Margin 25.5%
Operating Margin 9.4%
Net Margin 7.2%
Return on Equity (ROE) 16.7%
Return on Assets (ROA) 3.7%

Cash Flow & Balance Sheet

Operating Cash Flow$988M
Free Cash Flow$740M
Total Debt$2.6B
Debt-to-Equity57.2
Current Ratio1.4
Total Assets$11.9B

Price & Trading

Last Close$115.94
50-Day MA$123.53
200-Day MA$111.82
Avg Volume796K
Beta1.1
52-Week Range
$73.79
$143.78

About AGCO CORP /DE (AGCO)

CEO
Mr. Eric P. Hansotia
Employees
22,000
Sector
Industrials
Industry
Farm & Heavy Construction Machinery
Country
United States
Exchange
NYSE
Market Cap
$8.2B
Currency
USD

AGCO Corporation manufactures and distributes agricultural equipment and replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery systems; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, including self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Fendt, Massey Ferguson, PTx, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

Purification Calculator

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Frequently Asked Questions

Is AGCO CORP /DE (AGCO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), AGCO CORP /DE is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is AGCO CORP /DE's debt ratio?

AGCO CORP /DE's debt ratio is 27.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 21.5%.

Does AGCO CORP /DE require dividend purification?

Yes, AGCO CORP /DE has an impermissible income ratio of 0.56%, which means 0.56% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are AGCO CORP /DE's key financial metrics?

AGCO CORP /DE has a market capitalization of $8.2B, trailing P/E ratio of 11.6, and revenue of $10.1B. The company maintains a gross margin of 25.5% and a net margin of 7.2%. Return on equity stands at 16.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.