TSX:AJX

Stock Analysis Report

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Executive Summary

AgJunction Inc. provides guidance and autosteering solutions for precision agriculture applications worldwide.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has AgJunction's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

AJX

2.1%

CA Communications

2.2%

CA Market


1 Year Return

-68.4%

AJX

-10.5%

CA Communications

-10.1%

CA Market

Return vs Industry: AJX underperformed the Canadian Communications industry which returned -10.5% over the past year.

Return vs Market: AJX underperformed the Canadian Market which returned -10.1% over the past year.


Shareholder returns

AJXIndustryMarket
7 Day-2.3%2.1%2.2%
30 Day13.2%3.8%5.8%
90 Day7.5%-1.4%-5.3%
1 Year-68.4%-68.4%-6.6%-10.5%-7.1%-10.1%
3 Year-66.4%-66.4%-25.4%-30.0%1.8%-7.7%
5 Year-64.2%-64.2%-10.3%-21.2%19.1%1.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AgJunction undervalued compared to its fair value and its price relative to the market?

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AJX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AJX's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AJX is good value based on its PB Ratio (0.7x) compared to the CA Communications industry average (1.2x).


Next Steps

Future Growth

How is AgJunction forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

45.7%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AgJunction has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AgJunction performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJX is currently unprofitable.

Growing Profit Margin: AJX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AJX is unprofitable, but has reduced losses over the past 5 years at a rate of 37.5% per year.

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

Earnings vs Industry: AJX is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (40.3%).


Return on Equity

High ROE: AJX has a negative Return on Equity (-24.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is AgJunction's financial position?


Financial Position Analysis

Short Term Liabilities: AJX's short term assets ($24.2M) exceed its short term liabilities ($5.6M).

Long Term Liabilities: AJX's short term assets ($24.2M) exceed its long term liabilities ($3.7M).


Debt to Equity History and Analysis

Debt Level: AJX is debt free.

Reducing Debt: AJX currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


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: AJX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AJX has sufficient cash runway for 2 years if free cash flow continues to grow at historical rates of 7.8% each year.


Next Steps

Dividend

What is AgJunction's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if AJX'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 AJX's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

M. McMickell

0.42

Tenure

US$260,375

Compensation

Dr. M. Brett McMickell, Ph.D. serves as President, Chief Executive Officer and Director at AgJunction Inc. since January 31, 2020. Dr. McMickell served as Chief Operating Officer at AgJunction Inc. from Se ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD260.38K) is above average for companies of similar size in the Canadian market ($USD165.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
M. McMickell
President0.42yrUS$260.38k0.80% $201.2k
Bobac Barjesteh
Executive VP & General Counsel4.42yrsUS$245.30k0.099% $25.0k
Peter Newton
Interim Chief Financial Officer0.083yrno datano data
Mark Bittner
Senior Vice President of Global Sales & Customer Care4.67yrsUS$389.57k0.36% $90.1k
Karen Beckett
Director of Human Resourcesno datano datano data
Husam Kal
Senior Vice President of Global Operationsno dataUS$269.30kno data
Stacy Monier
Controllerno datano datano data
Douglas Marinaro
Vice President of Strategy2.5yrsUS$420.21k0.21% $53.7k

2.5yrs

Average Tenure

Experienced Management: AJX's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. McMickell
President0.42yrUS$260.38k0.80% $201.2k
Jonathan Ladd
Director4.67yrsUS$120.60k0.92% $230.8k
Scott Edmonds
Lead Independent Director1.42yrsUS$37.52k0.13% $32.7k
Jose Suarez
Independent Director4.67yrsno datano data
Lori Ell
Independent Chairman2.42yrsUS$262.80k0.12% $29.2k

2.4yrs

Average Tenure

58yo

Average Age

Experienced Board: AJX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: AJX 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

AgJunction Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AgJunction Inc.
  • Ticker: AJX
  • Exchange: TSX
  • Founded: 1990
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$25.180m
  • Shares outstanding: 117.12m
  • Website: https://www.agjunction.com

Number of Employees


Location

  • AgJunction Inc.
  • 9150 East Del Camino Drive
  • Suite 115
  • Scottsdale
  • Arizona
  • 85258
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJXTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1997
5TKDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1997
AJXG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 1997

Biography

AgJunction Inc. provides guidance and autosteering solutions for precision agriculture applications worldwide. Its products and solutions offer accurate guidance and positioning, autosteering, and machine automation for the agriculture markets and used in various farming operation, including tilling, planting, spraying, and harvesting. The company offers RANGER guidance solution, a GPS guidance solution, which shows visual cues in advance affording farmers the time to focus on farming instead of focusing on a map display; and Wheelman autosteering systems, such as Wheelman Pro and Wheelman Flex, and Whirl software for farmers to steer farm equipment directly to farmers through online. It also provides Wheelman white-label solutions; ECU-S1 hardware controller family; and MDU-G4 and MDU-G5 electronic steering, as well as software modules for integration into manufacturer and supplier systems. The company markets its solutions under the Novariant, Wheelman, Whirl, and Handsfreefarm brands. The company was formerly known as Hemisphere GPS Inc. and changed its name to AgJunction Inc. in May 2013. AgJunction Inc. was incorporated in 1990 and is headquartered in Scottsdale, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 12:18
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.