AGILENT TECH.

NYSE-A RECENT
PRICE 139.59 P/ERATIO 24.8(Trailing:
Median: 24.0) P/E RATIO 1.43 YLD 0.7%
26.0 RELATIVE DIV’D VALUE
LINE
TIMELINESS 3 Raised 10/13/23 High:
Low:
57.9
40.2
61.2
38.1
43.6
33.1
48.6
34.2
70.9
45.7
75.1
60.4
85.7
62.0
120.2
61.1
179.6
112.5
160.3
112.5
159.6
96.8
151.6
126.7
Target Price Range
2027 2028 2029
SAFETY 2 Raised 11/15/19 LEGENDS
20.0 x ″Cash Flow″ p sh 320
TECHNICAL 2 Raised 4/19/24 . . . . Relative Price Strength
Options: Yes
BETA .95 (1.00 = Market) Shaded area indicates recession 200
18-Month Target Price Range 160
Low-High Midpoint (% to Mid) 120
100
$95-$166 $131 (-5%) 80
2027-29 PROJECTIONS 60
Ann’l Total
Price Gain Return 40
High 225 (+60%) 13%
Low 165 (+20%) 5%
% TOT. RETURN 3/24
Institutional Decisions THIS VL ARITH.*
2Q2023 3Q2023 4Q2023 STOCK INDEX 18
Percent 30 1 yr. 5.9 16.9
to Buy 373 398 475 shares 20
to Sell 479 431 421 3 yr. 16.7 16.2
traded 10
Hld’s(000) 254106 258201 263472 5 yr. 87.6 71.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 © VALUE LINE PUB. LLC 27-29
16.50 12.95 15.29 19.06 19.82 20.37 20.84 12.18 12.99 13.89 15.45 16.71 17.45 20.91 23.19 23.39 23.60 25.65 Sales per sh A 32.60
2.55 .38 2.32 3.65 4.20 3.29 3.63 2.06 2.31 2.68 3.18 3.57 3.75 4.83 5.73 5.96 6.05 6.60 ‘‘Cash Flow’’ per sh 8.55
1.87 d.09 1.77 2.85 3.27 2.10 3.04 1.74 1.98 2.36 2.79 3.11 3.28 4.34 5.22 5.44 5.50 6.05 Earnings per sh A B 7.85
-- -- -- -- .30 .46 .53 .40 .46 .53 .60 .66 .72 .78 .84 .90 .94 1.00 Div’ds Decl’d per sh C 1.26
.44 .37 .34 .54 .56 .59 .61 .30 .43 .55 .56 .50 .39 .62 .99 1.02 1.35 1.25 Cap’l Spending per sh 1.40
7.31 7.24 9.07 12.42 14.98 15.87 15.82 12.57 13.12 15.00 14.36 15.37 15.92 17.83 17.97 20.01 22.10 24.65 Book Value per sh D 34.80
350.00 346.00 356.00 347.00 346.00 333.00 335.00 331.46 323.46 322.00 318.00 309.00 306.00 302.21 295.26 292.12 285.75 279.55 Common Shs Outst’g E 262.15
17.7 -- 17.5 14.7 12.1 21.0 18.5 22.8 21.4 23.5 24.1 23.4 26.5 31.6 25.7 24.3 Bold figures are Avg Ann’l P/E Ratio 25.0
1.07 -- 1.11 .92 .77 1.18 .97 1.15 1.12 1.18 1.30 1.25 1.36 1.71 1.48 1.41 Value Line Relative P/E Ratio 1.40
estimates
-- -- -- -- .8% 1.0% .9% 1.0% 1.1% 1.0% .9% .9% .8% .6% .6% .7% Avg Ann’l Div’d Yield .6%
CAPITAL STRUCTURE as of 1/31/24 6981.0 4038.0 4202.0 4472.0 4914.0 5163.0 5339.0 6319.0 6848.0 6833.0 6750 7170 Sales ($mill) A 8550
Total Debt $2555 mill. Due in 5 Yrs $900 mill. 21.7% 21.5% 23.1% 23.9% 24.3% 25.6% 25.0% 27.8% 29.5% 29.4% 29.5% 29.5% Operating Margin 30.0%
LT Debt $2555 mill. LT Interest $84 mill. 187.0 97.0 94.0 95.0 105.0 113.0 124.0 127.0 126.0 132.0 135 140 Depreciation ($mill) 150
(Tot. Interest covered 20.6x)
(32% of Cap’l) 1029.0 586.0 653.0 768.0 907.0 989.0 1023.0 1332.0 1565.0 1609.0 1590 1710 Net Profit ($mill) 2095
Leases, Uncapitalized Annual rentals $51 mill. 15.5% 19.6% 18.8% 18.0% 18.0% 16.8% 15.2% 14.2% 14.0% 13.8% 14.0% 14.0% Income Tax Rate 14.0%
14.7% 14.5% 15.5% 17.2% 18.5% 19.2% 19.2% 21.1% 22.9% 23.5% 23.6% 23.8% Net Profit Margin 24.5%
Pension Assets-10/23 $1.15 bill. Oblig. $1.03 bill. 3798.0 2710.0 2690.0 2906.0 2677.0 1109.0 1948.0 2091.0 1917.0 2583.0 2550 2690 Working Cap’l ($mill) 3100
2762.0 1655.0 1912.0 1801.0 1799.0 1791.0 2284.0 2729.0 2733.0 2735.0 2700 2700 Long-Term Debt ($mill) 2600
Pfd Stock None
Common Stock 293,055,284 shs. 5298.0 4167.0 4243.0 4831.0 4567.0 4748.0 4873.0 5389.0 5305.0 5845.0 6315 6890 Shr. Equity ($mill) D 9120
as of 2/27/24 13.5% 10.6% 11.2% 12.2% 14.8% 15.7% 14.8% 16.9% 20.0% 19.3% 18.5% 18.5% Return on Total Cap’l 18.5%
19.4% 14.1% 15.4% 15.9% 19.9% 20.8% 21.0% 24.7% 29.5% 27.5% 25.0% 25.0% Return on Shr. Equity 23.0%
MARKET CAP: $40.9 billion (Large Cap) 16.1% 10.9% 11.9% 12.4% 15.7% 16.5% 16.4% 20.3% 24.8% 23.0% 21.0% 20.5% Retained to Com Eq 19.5%
CURRENT POSITION 2022 2023 1/31/24 17% 23% 23% 22% 21% 21% 22% 18% 16% 16% 17% 17% All Div’ds to Net Prof 16%
($MILL.)
Cash Assets 1053 1590 1748 BUSINESS: Agilent Technologies, Inc. is a leading supplier of revenue), CrossLab (23%) and Diagnostics and Genomics (21%).
Receivables 1405 1291 1295 laboratory-workflow instruments, software, and services to the life R&D: 7.0% of 2023 sales. Had about 18,100 employees, as of
Inventory (FIFO) 1038 1031 1033 sciences, diagnostics, and applied chemical markets. Products in- 10/23. Offs./dirs. own less than 1% of common stock; BlackRock,
Other 282 274 262
Current Assets 3778 4186 4338 clude liquid and gas chromatography systems, mass spec- 10.9% (2/24 proxy). Chairman: James Cullen. CEO: Padraig
Accts Payable 580 418 488 trometers, and atomic absorption instruments. Has three reportable McDonnell. Inc.: DE. Addr.: 5301 Stevens Creek Blvd., Santa Clara,
Debt Due 36 -- -- segments: Life Sciences and Applied Markets (56% of fiscal ’23 CA 95051. Tele.: 877-424-4536. Internet: www.agilent.com.
Other 1245 1185 1129
Current Liab. 1861 1603 1617 Agilent Technologies has got a new to weigh on the bottom line, given that
CEO. Indeed, on February 21st, the lab country’s weak economy and pullbacks in
ANNUAL RATES Past Past Est’d ’21-’23 equipment maker announced that Mike spending by regional pharmaceutical com-
of change (per sh) 10 Yrs. 5 Yrs. to ’27-’29
Sales 1.5% 10.0% 6.5% McMullen was retiring after more than panies.
‘‘Cash Flow’’ 4.0% 15.0% 7.5% nine years on the job and that Padraig We remain generally positive about
Earnings 6.0% 16.0% 8.0% McDonnell, who most recently headed the Agilent’s long-term prospects. To wit,
Dividends 12.5% 9.5% 7.0%
Book Value 2.5% 5.5% 11.0% Silicon Valley-based company’s CrossLab we have share profits reaching $7.85 by
Group, would replace him effective May 2027–2029, up an average of roughly 8%
Fiscal QUARTERLY SALES ($ mill.) A Full
Year Fiscal 1st. The transition should be fairly smooth annually over the next few years. Un-
Ends Jan.31 Apr. 30 Jul. 31 Oct. 31 Year as Mr. McDonnell has worked at Agilent derpinning our favorable stance is, in part,
2021 1548 1525 1586 1660 6319 in various capacities for roughly 26 years. an expectation that business in China will
2022 1674 1607 1718 1849 6848 Furthermore, Mr. McMullen will serve as snap back, as the country, for example,
2023 1756 1717 1672 1688 6833 an advisor to the company until October. makes good on pledges to extend
2024 1658 1585 1715 1792 6750
2025 1760 1685 1820 1905 7170 During his nearly decade-long tenure, Mr. healthcare to the masses and to improve
Fiscal Full
McMullen had a pretty good run. Notably, food, water, and air quality. The company
EARNINGS PER SHARE AB
Year Fiscal over that time frame, Agilent’s revenues should also benefit from a push to remove
Ends Jan.31 Apr.30 Jul.31 Oct.31 Year have increased nearly 70% while its harmful (PFAS) ‘‘forever’’ chemicals from
2021 1.06 .97 1.10 1.21 4.34 shares have more than tripled in price America’s potable water systems.
2022 1.21 1.13 1.34 1.53 5.22 (+231%), easily outpacing the benchmark At the recent quotation, shares of
2023 1.37 1.27 1.43 1.38 5.44
2024 1.29 1.19 1.45 1.57 5.50 S&P 500’s 144% gain over the same Agilent Technologies should yield
2025 1.42 1.31 1.60 1.72 6.05 stretch. decent risk-adjusted returns for con-
The company is soon likely to post its servative, buy-and-hold investors. The
Cal- QUARTERLY DIVIDENDS PAID C
Full third-straight down quarter. At $1.19 a financial flexibility provided by the compa-
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
share, our earnings target for the April in- ny’s strong free cash flow is, in part, the
2020 .18 .18 .18 .18 .72 terim represents a 6% year-over-year basis of our bullish long-term stance. A
2021 .194 .194 .194 .194 .776 decline. What’s more, it would be the bounce back in China would help nicely, as
2022 .21 .21 .21 .21 .84
2023 .225 .225 .225 .225 .90 lowest quarterly tally for Agilent in two well.
2024 .236 .236 years. As we see it, China likely continued Nils C. Van Liew May 10, 2024
(A) Fiscal years end October 31st. Excludes Quarterly EPS may not sum to total due to ber. (D) Incl. intang. In ’23: $4,435 mill., Company’s Financial Strength B++
Electronic Measurement starting in fiscal 2015. rounding. Next earnings report due in late May. $15.18/sh. (E) In millions. Stock’s Price Stability 90
(B) Dil. earnings. Adjusted after 2013. Ex- (C) Initiated quarterly dividend on 4/25/12. Divi- Price Growth Persistence 85
cludes n/r gain/(loss): ’13, (78¢); ’14, ($1.55). dend is paid late January, April, July, and Octo- Earnings Predictability 100
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