CNSX:AGRO

Stock Analysis Report

Executive Summary

Agrios Global Holdings Ltd. operates as a data analytics driven agriculture technology and services company.

Rewards

Trading at 89.9% below its fair value

Revenue is forecast to grow 35.77% per year

Revenue grew by 196.8% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Has less than 1 year of cash runway

Does not have meaningful revenue ($5M)

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has Agrios Global Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGRO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

19.5%

AGRO

1.5%

CA Food

1.6%

CA Market


1 Year Return

-38.8%

AGRO

-1.3%

CA Food

10.0%

CA Market

Return vs Industry: AGRO underperformed the Canadian Food industry which returned -1.3% over the past year.

Return vs Market: AGRO underperformed the Canadian Market which returned 10.4% over the past year.


Shareholder returns

AGROIndustryMarket
7 Day19.5%1.5%1.6%
30 Day-2.0%0.5%2.7%
90 Day-18.3%-1.1%6.4%
1 Year-38.8%-38.8%0.5%-1.3%13.5%10.0%
3 Yearn/a-10.7%-15.2%17.5%6.8%
5 Yearn/a25.2%15.2%36.6%16.5%

Price Volatility Vs. Market

How volatile is Agrios Global Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Agrios Global Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGRO (CA$0.23) is trading below our estimate of fair value (CA$2.29)

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


Price To Earnings Ratio

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

PE vs Market: AGRO 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 AGRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGRO is good value based on its PB Ratio (0.7x) compared to the CA Food industry average (1.6x).


Next Steps

Future Growth

How is Agrios Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AGRO's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if AGRO's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: AGRO's revenue (35.8% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: AGRO's revenue (35.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Agrios Global Holdings performed over the past 5 years?

-4.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AGRO is currently unprofitable.

Growing Profit Margin: AGRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AGRO's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: AGRO is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-21.8%).


Return on Equity

High ROE: AGRO has a negative Return on Equity (-14.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Agrios Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AGRO's short term assets ($9.9M) exceed its short term liabilities ($5.5M).

Long Term Liabilities: AGRO's short term assets ($9.9M) exceed its long term liabilities ($4.8M).


Debt to Equity History and Analysis

Debt Level: AGRO's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AGRO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AGRO has a high level of physical assets or inventory.

Debt Coverage by Assets: AGRO's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AGRO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AGRO has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of -97.9% each year.


Next Steps

Dividend

What is Agrios Global Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AGRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AGRO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AGRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AGRO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AGRO's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Agrios Global Holdings's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Chris Kennedy 0

0yrs

Tenure

US$209,583

Compensation

Mr. Chris Kennedy serves as President & CEO of Agrios Global Holdings Ltd and has been its Director since June 8, 2018. 


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD160.41K) is about average for companies of similar size in the Canadian market ($USD165.67K).

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


Management Age and Tenure

0.7yrs

Average Tenure

Experienced Management: AGRO's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.0yrs

Average Tenure

Experienced Board: AGRO's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 86.4%.


Management Team

  • James Foster

    Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$229.28k
  • Larry Ellison

    Interim CFO

    • Tenure: 1.6yrs
    • Compensation: US$261.99k
  • Chris Kennedy

    President

    • Compensation: US$209.58k
  • Andrew Lange

    Chief Technical Officer & Director

    • Tenure: 0.3yrs
    • Compensation: US$338.33k
  • Stephanie Wong

    Managing Director – Agrios Asia

    • Vania Gaudia (34yo)

      VP of Operations & Corporate Secretary

      • Tenure: 1.5yrs
      • Compensation: US$150.03k

    Board Members

    • Brad Wasson

      Director

      • Michael Hammer

        Strategic Advisor

        • Tenure: 0.8yrs
      • Curtis Livesay

        Director of Agronomy Services

        • Compensation: US$97.50k
      • James Foster

        Executive Chairman

        • Tenure: 0.3yrs
        • Compensation: US$229.28k
      • Larry Ellison

        Interim CFO

        • Tenure: 1.6yrs
        • Compensation: US$261.99k
      • Ray Lok

        Technical Advisor

        • Tenure: 1.2yrs
      • Chris Kennedy

        President

        • Compensation: US$209.58k
      • Andrew Lange

        Chief Technical Officer & Director

        • Tenure: 0.3yrs
        • Compensation: US$338.33k
      • Jill Clapperton

        Technical Advisor

        • Tenure: 1yrs
      • Douglas Bouldin

        Director

        Company Information

        Agrios Global Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Agrios Global Holdings Ltd.
        • Ticker: AGRO
        • Exchange: CNSX
        • Founded:
        • Industry: Agricultural Products
        • Sector: Food, Beverage & Tobacco
        • Market Cap: CA$19.076m
        • Shares outstanding: 90.84m
        • Website: https://www.agriosglobal.com

        Number of Employees


        Location

        • Agrios Global Holdings Ltd.
        • 1055 West Hastings Street
        • Suite 2250
        • Vancouver
        • British Columbia
        • V6E 2E9
        • Canada

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        AGROCNSX (Canadian National Stock Exchange)YesCommon SharesCACADNov 2018
        0SADB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2018
        AGGH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2018

        Biography

        Agrios Global Holdings Ltd. operates as a data analytics driven agriculture technology and services company. The company leases and manages properties and equipment for eco-sustainable agronomy and provides advisory services to support various aspects of aeroponic cultivation in the cannabis sector in the state of Washington. Agrios Global Holdings Ltd. is headquartered in Vancouver, Canada. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/20 00:46
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        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.