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AFN

Ag Growth International TSX:AFN Stock Report

Last Price

CA$33.16

Market Cap

CA$604.0m

7D

-9.5%

1Y

-21.0%

Updated

17 May, 2022

Data

Company Financials +
AFN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health1/6
Dividends1/6

AFN Stock Overview

Ag Growth International Inc., together with its subsidiaries, manufactures and distributes grain and rice handling, storage, and conditioning equipment in Canada, the United States, and internationally.

Ag Growth International Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Ag Growth International
Historical stock prices
Current Share PriceCA$33.16
52 Week HighCA$44.24
52 Week LowCA$25.85
Beta2.35
1 Month Change-18.02%
3 Month Change-13.74%
1 Year Change-21.05%
3 Year Change-37.88%
5 Year Change-42.79%
Change since IPO228.97%

Recent News & Updates

Shareholder Returns

AFNCA MachineryCA Market
7D-9.5%1.6%2.8%
1Y-21.0%-40.0%5.9%

Return vs Industry: AFN exceeded the Canadian Machinery industry which returned -39.9% over the past year.

Return vs Market: AFN underperformed the Canadian Market which returned 4.3% over the past year.

Price Volatility

Is AFN's price volatile compared to industry and market?
AFN volatility
AFN Average Weekly Movement6.9%
Machinery Industry Average Movement9.8%
Market Average Movement9.8%
10% most volatile stocks in CA Market16.7%
10% least volatile stocks in CA Market4.2%

Stable Share Price: AFN is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AFN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aTim Closehttps://www.aggrowth.com

Ag Growth International Inc., together with its subsidiaries, manufactures and distributes grain and rice handling, storage, and conditioning equipment in Canada, the United States, and internationally. The company offers storage equipment comprising grain and bolted bins, hopper bins, smooth wall bins, temporary storage equipment, unloads and sweeps, water tanks, fuel tanks; and conditioning equipment, such as mixed flow dryers, fans and heaters, aerations, airaugers, aeration floors, vents and exhausters, stirrings, and accessories. It also provides portable handling equipment, such as portable augers, conveyors, grain vacs, post pounders, seed treaters, and accessories; and permanent handling equipment, including bucket elevators, chain and belt conveyors, enclosed belt conveyors, distributors, feed handling equipment, screw feeders and conveyors, and spouts and connections.

Ag Growth International Fundamentals Summary

How do Ag Growth International's earnings and revenue compare to its market cap?
AFN fundamental statistics
Market CapCA$604.03m
Earnings (TTM)CA$13.03m
Revenue (TTM)CA$1.23b

48.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFN income statement (TTM)
RevenueCA$1.23b
Cost of RevenueCA$924.25m
Gross ProfitCA$310.32m
Other ExpensesCA$297.30m
EarningsCA$13.03m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.69
Gross Margin25.14%
Net Profit Margin1.06%
Debt/Equity Ratio336.5%

How did AFN perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

87%

Payout Ratio

Valuation

Is Ag Growth International undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AFN (CA$33.16) is trading below our estimate of fair value (CA$107.32)

Significantly Below Fair Value: AFN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AFN is poor value based on its PE Ratio (48.1x) compared to the Canadian Machinery industry average (28.5x).

PE vs Market: AFN is poor value based on its PE Ratio (48.1x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: AFN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: AFN's PB Ratio (2.2x) is in line with the CA Machinery industry average.


Future Growth

How is Ag Growth International forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFN's forecast earnings growth (35.2% per year) is above the savings rate (1.6%).

Earnings vs Market: AFN's earnings (35.2% per year) are forecast to grow faster than the Canadian market (7.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFN's revenue (6.1% per year) is forecast to grow slower than the Canadian market (6.3% per year).

High Growth Revenue: AFN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFN's Return on Equity is forecast to be high in 3 years time (23%)


Past Performance

How has Ag Growth International performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-38.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AFN has a large one-off loss of CA$16.2M impacting its March 31 2022 financial results.

Growing Profit Margin: AFN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AFN's earnings have declined by 38.5% per year over the past 5 years.

Accelerating Growth: AFN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AFN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (32.5%).


Return on Equity

High ROE: AFN's Return on Equity (4.5%) is considered low.


Financial Health

How is Ag Growth International's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AFN's short term assets (CA$652.6M) exceed its short term liabilities (CA$465.6M).

Long Term Liabilities: AFN's short term assets (CA$652.6M) do not cover its long term liabilities (CA$961.6M).


Debt to Equity History and Analysis

Debt Level: AFN's net debt to equity ratio (315.5%) is considered high.

Reducing Debt: AFN's debt to equity ratio has increased from 135.7% to 336.5% over the past 5 years.

Debt Coverage: AFN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AFN's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

What is Ag Growth International current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AFN's dividend (1.81%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: AFN's dividend (1.81%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).


Stability and Growth of Payments

Stable Dividend: AFN's dividend payments have been volatile in the past 10 years.

Growing Dividend: AFN's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (86.6%), AFN's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: AFN is paying a dividend but the company has no free cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Tim Close (47 yo)

7.17yrs

Tenure

CA$3,888,616

Compensation

Mr. Tim Close, CFA has been the President and Chief Executive Officer of Ag Growth International Inc. since March 02, 2015 and January 1, 2016 respectively. Mr. Close served as Senior Vice President of Str...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD3.03M) is above average for companies of similar size in the Canadian market ($USD987.80K).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AFN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: AFN's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AFN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ag Growth International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ag Growth International Inc.
  • Ticker: AFN
  • Exchange: TSX
  • Founded: 1996
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Implied Market Cap: CA$604.030m
  • Shares outstanding: 18.88m
  • Website: https://www.aggrowth.com

Number of Employees


Location

  • Ag Growth International Inc.
  • 198 Commerce Drive
  • Winnipeg
  • Manitoba
  • R3P 0Z6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.