Agilent Technologies Inc.A

Morningstar Rating

Stock Research and Analysis

by Stephen Simko, CFA

Agilent is a well-run company whose results we expect will continue to improve as global economic conditions strengthen. While near-term growth will be muted, we believe the company's bioanalytical measurement business offers attractive growth prospects Read more

Bulls Say

Agilent is the largest and most diversified measurement company in the world, boasting the largest installed base of any firm in the industry.

Agilent continues to generate very strong returns on capital from its bioanalytical segment. Strong industry growth rates should allow this profitable area to comprise a larger portion of its business going forward.

An increasingly variable cost structure has reduced operating leverage, which should make the company's results less susceptible to demand fluctuations going forward. Read more

Bears Say

Demand for several Agilent products remains volatile and dependent on customer R&D expenditures and technology cycles.

Expanding into emerging market segments dominated by entrenched competitors will be both expensive and time-consuming.

The company missed a valuable window during 2009 to acquire other companies on the cheap and enhance its product portfolio. Read more

Strategy

Agilent seeks to leverage its size, technological leadership, and global distribution to expand share in the major test and measurement markets. The company attempts to add to its sizable customer base Read more

Management

William P. Sullivan has been CEO since 2005; before that, he had been COO since 2002. Sullivan is an Agilent veteran who has been with the company since its spin-off from Hewlett-Packard HPQ in 1999. Adrian Dillon has served as CFO since 2001, after Read more

Profile

Agilent is the world's largest test and measurement company both in terms of size and product offerings. The company's electronic measurement segment (46% of sales) serves Read more

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