TSX:AFN

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Ag Growth International

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Ag Growth International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

AFN

1.3%

CA Machinery

1.1%

CA Market


1 Year Return

-33.8%

AFN

-11.2%

CA Machinery

-5.6%

CA Market

Return vs Industry: AFN underperformed the Canadian Machinery industry which returned -12.5% over the past year.

Return vs Market: AFN underperformed the Canadian Market which returned -5.7% over the past year.


Shareholder returns

AFNIndustryMarket
7 Day-0.3%1.3%1.1%
30 Day-24.3%-5.1%-2.4%
90 Day-1.2%2.5%4.5%
1 Year-30.7%-33.8%-9.0%-11.2%-2.2%-5.6%
3 Year-40.4%-47.9%-26.7%-32.0%6.3%-4.0%
5 Year-6.7%-27.1%20.6%10.3%34.4%13.7%

Price Volatility Vs. Market

How volatile is Ag Growth International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFN (CA$27.05) is trading below our estimate of fair value (CA$28.98)

Significantly Below Fair Value: AFN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AFN is unprofitable, so we can't compare its PE Ratio to the CA Machinery industry average.

PE vs Market: AFN is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AFN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AFN is good value based on its PB Ratio (1.6x) compared to the CA Machinery industry average (2.8x).


Next Steps

Future Growth

How is Ag Growth International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

112.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AFN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AFN's is expected to become profitable in the next 3 years.

Revenue vs Market: AFN's revenue (7.7% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: AFN's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AFN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFN is currently unprofitable.

Growing Profit Margin: AFN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AFN is unprofitable, but has reduced losses over the past 5 years at a rate of 1.7% per year.

Accelerating Growth: Unable to compare AFN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AFN is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (53.6%).


Return on Equity

High ROE: AFN has a negative Return on Equity (-14.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ag Growth International's financial position?


Financial Position Analysis

Short Term Liabilities: AFN's short term assets (CA$472.5M) exceed its short term liabilities (CA$275.1M).

Long Term Liabilities: AFN's short term assets (CA$472.5M) do not cover its long term liabilities (CA$914.5M).


Debt to Equity History and Analysis

Debt Level: AFN's debt to equity ratio (267.8%) is considered high.

Reducing Debt: AFN's debt to equity ratio has increased from 128.9% to 267.8% over the past 5 years.

Debt Coverage: AFN's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: AFN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFN's dividend (2.22%) is higher than the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: AFN's dividend (2.22%) is low compared to the top 25% of dividend payers in the Canadian market (5.86%).


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.


Current Payout to Shareholders

Dividend Coverage: AFN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AFN's dividends in 3 years are forecast to be well covered by earnings (22.8% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Tim Close (46 yo)

4.67yrs

Tenure

CA$2,354,210

Compensation

Mr. Tim Close, CFA has been the President and Chief Executive Officer of Ag Growth International Inc. since March 2, 2015 and January 1, 2016 respectively. Mr. Close served as Senior Vice President of Stra ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD1.76M) is above average for companies of similar size in the Canadian market ($USD887.92K).

Compensation vs Earnings: Tim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Tim Close
President4.67yrsCA$2.35m0.94%
CA$ 4.8m
Gary Anderson
Special Advisor & Director14.5yrsCA$156.75k0.047%
CA$ 235.7k
George Vis
Executive Vice President of North America0.50yrCA$610.11k0.081%
CA$ 409.4k
James Vis
Executive Vice President of Global Engineering0.50yrCA$610.11k0.081%
CA$ 409.4k
Paul Householder
Executive Vice President of International1.25yrsCA$1.52m0.016%
CA$ 81.1k
James Rudyk
Chief Financial Officerno datano datano data
Ryan Kipp
Senior VP of Legal4.67yrsno data0.031%
CA$ 155.3k
David Postill
Senior Vice President of Marketing & Customer Experience3.67yrsCA$703.80k0.022%
CA$ 109.8k
Noam Silberstein
Senior Vice President of Corporate Development0.50yrno datano data
Craig Wilson
Senior Vice President of Human Resources3.5yrsCA$859.75kno data
Ron Braun
Senior Vice President of Farm4.83yrsCA$337.50kno data
Dan Donner
Senior Vice President of Commercial4.83yrsCA$345.94kno data

3.7yrs

Average Tenure

53yo

Average Age

Experienced Management: AFN's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tim Close
President4.67yrsCA$2.35m0.94%
CA$ 4.8m
Gary Anderson
Special Advisor & Director14.5yrsCA$156.75k0.047%
CA$ 235.7k
Malcolm Moore
Independent Director7.5yrsCA$239.99kno data
William Lambert
Independent Chairman of the Board13.75yrsCA$226.55k0.41%
CA$ 2.1m
William Maslechko
Independent Director13.83yrsCA$180.19k0.048%
CA$ 243.4k
Anne De Greef-Safft
Independent Director1.75yrsCA$215.79kno data
David White
Independent Director13.83yrsCA$272.78k0.013%
CA$ 67.8k
Janet Giesselman
Independent Director7.5yrsCA$259.07kno data
Claudia Roessler
Independent Director0.50yrno datano data

7.5yrs

Average Tenure

65yo

Average Age

Experienced Board: AFN's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AFN insiders have only sold shares 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 company bio, 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
  • Market Cap: CA$505.884m
  • Shares outstanding: 18.71m
  • Website: https://www.aggrowth.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFNTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2004
AGGZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2004
7AGDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2004

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 00:14
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.