Agilent Technologies

Capital allocation is one of Agilent’s strengths. The company consistently returns cash to shareholders: it repurchased $1.15B of stock in FY2024 (nearly 4% of shares) and pays a modest dividend (1% yield). Buybacks roughly doubled year-over-year, reflecting management’s discipline when it believes the stock is undervalued.

The firm’s CAGR in share count is negative (shares outstanding down) despite some share-based compensation. Agilent does make strategic acquisitions: the Biovectra deal ($925M for contract-drug manufacturing) was financed with cash/debt and is aimed at expanding the services offering).

While slightly dilutive ($0.05 EPS dilution guidance), it fits the biotech growth strategy. Capital expenditures are moderate (5-6% of revenue, mainly for R&D and new capacity). Overall, the firm prioritizes reinvestment in high-ROIC projects, accretive M&A, and shareholder returns. Stock-based comp is present but contained.

These practices earn a high score (~85) for efficient capital allocation.