Agilent Technologies, Inc. (NYSE: A)

Sector: Healthcare Industry: Diagnostics & Research CIK: 0001090872
Market Cap 43.58 Bn
P/B 8.01
P/E 58.11
P/S 13.53
ROIC (Qtr) 14.61
Div Yield % 0.57
Rev 1y % (Qtr) 9.41
Total Debt (Qtr) 3.35 Bn
Debt/Equity (Qtr) 0.50

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.56B provides robust 0.46x coverage of total debt 3.35B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.79B provide 5.88x coverage of short-term debt 304M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.56B provides strong 12.18x coverage of stock compensation 128M, indicating sustainable incentive practices.
  • Operating cash flow of 1.56B provides exceptional 13.92x coverage of interest expenses 112M, showing strong debt service capability.
  • Robust free cash flow of 1.15B exceeds capital expenditure of 407M by 2.83x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 1.56B barely covers its investment activities of (394M), with a coverage ratio of -3.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.56B provides thin coverage of dividend payments of (282M) with a -5.53 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (394M) provide weak support for R&D spending of 455M, which is -0.87x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 1.15B represents just -28.10x of debt issuance (41M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 1.39B provide limited buffer against comprehensive income items of (226M), which is -6.15x, indicating elevated exposure to market risks.

Business Segments Breakdown of Revenue (2025)

Business Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Diagnostics & Research
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMO Thermo Fisher Scientific Inc. 217.82 Bn 68.63 8.84 35.68 Bn
2 DHR Danaher Corp /De/ 152.30 Bn 63.15 9.19 16.86 Bn
3 IDXX Idexx Laboratories Inc /De 52.07 Bn 50.68 12.49 1.09 Bn
4 A Agilent Technologies, Inc. 43.58 Bn 58.11 13.53 3.35 Bn
5 IQV Iqvia Holdings Inc. 32.77 Bn 25.54 2.06 15.19 Bn
6 DGX Quest Diagnostics Inc 30.26 Bn 44.25 4.05 6.38 Bn
7 LH Labcorp Holdings Inc. 28.36 Bn 23.29 2.64 6.53 Bn
8 MTD Mettler Toledo International Inc/ 28.31 Bn 32.57 7.03 2.15 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.43 2.61
EV to Cash from Ops. EV/CFO 39.60 17.76
EV to Debt EV to Debt 13.00 46.77
EV to EBIT EV/EBIT 49.05 15.40
EV to EBITDA EV/EBITDA 65.37 5.16
EV to Free Cash Flow [EV/FCF] EV/FCF 47.34 15.58
EV to Market Cap EV to Market Cap 1.00 1.76
EV to Revenue EV/Rev 13.53 5.14
Price to Book Value [P/B] P/B 8.01 -21.17
Price to Earnings [P/E] P/E 58.11 12.08
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.62 -1.84
Dividend Payout Ratio % Div Payout % (Qtr) 21.60 2.86
Dividend per Basic Share Div per Share (Qtr) 0.99 0.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 24.46 1.94
Interest Coverage Int. cover (Qtr) 13.81 -139.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -7.67 -36.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 34.61 23.63
Dividend Growth (1y) % Div 1y % (Qtr) 5.08 0.25
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.51 10.94
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.26 -444.99
EBIT Growth (1y) % EBIT 1y % (Qtr) -4.33 7.67
EBT Growth (1y) % EBT 1y % (Qtr) -5.65 -7.01
EPS Growth (1y) % EPS 1y % (Qtr) 3.38 16.69
FCF Growth (1y) % FCF 1y % (Qtr) -16.10 55.89
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.06 185.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.01
Cash Ratio Cash Ratio (Qtr) 0.76 1.24
Current Ratio Curr Ratio (Qtr) 1.96 2.73
Debt to Equity Ratio Debt/Equity (Qtr) 0.50 -2.52
Interest Cover Ratio Int Coverage (Qtr) 13.81 -139.68
Times Interest Earned Times Interest Earned (Qtr) 13.81 -139.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.40 -97.23
EBIT Margin % EBIT Margin % (Qtr) 22.27 -115.64
EBT Margin % EBT Margin % (Qtr) 20.65 -114.24
Gross Margin % Gross Margin % (Qtr) 52.40 44.75
Net Profit Margin % Net Margin % (Qtr) 18.80 -113.07