TSX:AJX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with questionable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

AJX

1.0%

CA Communications

1.4%

CA Market


1 Year Return

-59.8%

AJX

0.1%

CA Communications

10.1%

CA Market

Return vs Industry: AJX underperformed the Canadian Communications industry which returned -1.5% over the past year.

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


Shareholder returns

AJXIndustryMarket
7 Day-2.9%1.0%1.4%
30 Day-12.0%2.5%2.6%
90 Day-33.3%3.7%6.5%
1 Year-59.8%-59.8%0.7%0.1%13.7%10.1%
3 Year-33.3%-33.3%-8.3%-10.1%17.8%7.1%
5 Year-37.7%-37.7%-34.2%-36.5%36.3%16.3%

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?

501.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJX (CA$0.34) is trading above our estimate of fair value (CA$0.19)

Significantly Below Fair Value: AJX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AJX is poor value based on its PE Ratio (516.3x) compared to the Communications industry average (40x).

PE vs Market: AJX is poor value based on its PE Ratio (516.3x) compared to the Canadian market (15.8x).


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 (1x) compared to the CA Communications industry average (1.3x).


Next Steps

Future Growth

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

84.9%

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?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJX has a large one-off gain of $2.2M impacting its September 30 2019 financial results.

Growing Profit Margin: AJX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AJX has become profitable over the past 5 years, growing earnings by 33.5% per year.

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

Earnings vs Industry: AJX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (12.6%).


Return on Equity

High ROE: AJX's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AgJunction's financial position?


Financial Position Analysis

Short Term Liabilities: AJX's short term assets ($29.7M) exceed its short term liabilities ($6.9M).

Long Term Liabilities: AJX's short term assets ($29.7M) exceed its long term liabilities ($4.5M).


Debt to Equity History and Analysis

Debt Level: AJX is debt free.

Reducing Debt: AJX had no debt 5 years ago.

Debt Coverage: AJX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AJX has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AJX has a low level of unsold assets or inventory.

Debt Coverage by Assets: AJX's debt is covered by short term assets (assets are 1.3382446292732E+17x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.4%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate AJX'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 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

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

2.6yrs

Average management tenure


CEO

Lori Ell 0

0.08yrs

Tenure

US$77,026

Compensation

Ms. Lori S. Ell, CMA has been Interim President and Chief Executive Officer of AgJunction Inc. since December 2019. Ms. Ell is a founder and President of Growing Ideas and consults with business leaders wh ...


Management Age and Tenure

2.6yrs

Average Tenure

58yo

Average Age

Experienced Management: AJX's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: AJX's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$3,10819 Dec 19
Scott Edmonds
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,400
Max PriceCA$0.42
BuyCA$3,11718 Dec 19
Lori Ell
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares8,000
Max PriceCA$0.40
BuyCA$3,89313 Sep 19
Lori Ell
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,700
Max PriceCA$0.52
BuyCA$3,90012 Sep 19
Scott Edmonds
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares7,800
Max PriceCA$0.50
BuyCA$2,64021 Jun 19
Lori Ell
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares4,000
Max PriceCA$0.66
BuyCA$20120 Jun 19
Scott Edmonds
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares300
Max PriceCA$0.67
BuyCA$2,47910 Jun 19
Scott Edmonds
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,700
Max PriceCA$0.67

Ownership Breakdown

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


Management Team

  • Jon Ladd (63yo)

    Director & Senior Strategic Advisor

    • Tenure: 4.3yrs
    • Compensation: US$143.60k
  • Doug Marinaro (58yo)

    Vice President of Strategy

    • Tenure: 2.1yrs
    • Compensation: US$420.21k
  • Mark Bittner

    Senior Vice President of Global Sales & Customer Care

    • Tenure: 4.3yrs
    • Compensation: US$389.57k
  • Lori Ell

    Chairman

    • Tenure: 0.08yrs
    • Compensation: US$77.03k
  • Husam Kal (50yo)

    Senior Vice President of Global Operations

    • Compensation: US$269.30k
  • Karen Beckett

    Director of Human Resources

    • bob Barjesteh

      VP of Mergers & Acquisition

      • Tenure: 4yrs
      • Compensation: US$225.00k
    • Jeff Morris

      Senior VP & Chief Marketing Officer

      • Tenure: 2.6yrs
    • M. McMickell

      Chief Operating Officer

      • Compensation: US$390.35k
    • Scott Steinman

      Chief Financial Officer

      • Tenure: 0.3yrs

    Board Members

    • Jon Ladd (63yo)

      Director & Senior Strategic Advisor

      • Tenure: 4.3yrs
      • Compensation: US$143.60k
    • Scott Edmonds (58yo)

      Lead Independent Director

      • Tenure: 1yrs
      • Compensation: US$60.07k
    • Jose Suarez (50yo)

      Independent Director

      • Tenure: 4.3yrs
    • Lori Ell

      Chairman

      • Tenure: 0.08yrs
      • Compensation: US$77.03k

    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$38.904m
    • Shares outstanding: 117.89m
    • 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 control systems for the agriculture markets and are used throughout a farming operation during tilling, planting, spraying, and harvesting. These products enable a farmer’s machine to precisely reach a pre-planned path and then ‘steer’ the path with input from the farmer. 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 (Wheelman Pro and Wheelman Flex) and Whirl software for farmers to steer farm equipment directly to farmers online. It also provides Wheelman white-label solutions for autosteering for original equipment manufacturers (OEM)/value-added resellers (VAR); ECU-S1 hardware controller family of autosteering for OEM/VAR; and Soft-ECU software controller for autosteering for steering-enabled OEM/VAR. The company markets its solutions under the Novariant, Wheelman, and Whirl brand names. 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 Analysis2020/01/21 00:09
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.