OTCPK:AJXG.F

Stock Analysis Report

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: AJXG.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

40.9%

AJXG.F

10.3%

US Communications

9.9%

US Market


1 Year Return

-87.3%

AJXG.F

-27.6%

US Communications

-11.9%

US Market

Return vs Industry: AJXG.F underperformed the US Communications industry which returned -27.6% over the past year.

Return vs Market: AJXG.F underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

AJXG.FIndustryMarket
7 Day40.9%10.3%9.9%
30 Day-67.5%-4.5%-15.0%
90 Day-73.4%-18.4%-21.5%
1 Year-87.3%-87.3%-26.0%-27.6%-10.0%-11.9%
3 Year-85.9%-85.9%8.8%1.9%12.3%5.1%
5 Year-89.4%-89.4%40.4%25.3%32.5%18.1%

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

No news available

Valuation

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

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: AJXG.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AJXG.F is good value based on its PB Ratio (0.2x) compared to the US 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?

13.2%

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

  • Examine AgJunction's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access AgJunction's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has AgJunction performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJXG.F is currently unprofitable.

Growing Profit Margin: AJXG.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AJXG.F is unprofitable, but has reduced losses over the past 5 years at a rate of 38.9% per year.

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

Earnings vs Industry: AJXG.F is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-13.2%).


Return on Equity

High ROE: AJXG.F has a negative Return on Equity (-21.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is AgJunction's financial position?


Financial Position Analysis

Short Term Liabilities: AJXG.F's short term assets ($24.9M) exceed its short term liabilities ($5.7M).

Long Term Liabilities: AJXG.F's short term assets ($24.9M) exceed its long term liabilities ($4.0M).


Debt to Equity History and Analysis

Debt Level: AJXG.F is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AJXG.F's debt is covered by short term assets.


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

Forecast Cash Runway: AJXG.F has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 17.1% 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 AJXG.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AJXG.F'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 AJXG.F's dividends per share have been stable in the past.

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

M. McMickell

0.17

Tenure

US$390,345

Compensation

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


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD390.35K) is below average for companies of similar size in the US market ($USD602.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
M. McMickell
President0.17yrUS$390.35k0.23% $14.5k
Mark Bittner
Senior Vice President of Global Sales & Customer Care4.42yrsUS$389.57k0.36% $22.3k
Douglas Marinaro
Vice President of Strategy2.25yrsUS$420.21k0.21% $13.3k
Deborah Mack
Interim Chief Financial Officer0.17yrno datano data
Bobac Barjesteh
VP of Mergers & Acquisition4.17yrsUS$225.00k0.099% $6.2k
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

2.3yrs

Average Tenure

Experienced Management: AJXG.F's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
M. McMickell
President0.17yrUS$390.35k0.23% $14.5k
Jonathan Ladd
Director4.42yrsUS$143.60k0.74% $45.9k
Scott Edmonds
Lead Independent Director1.17yrsUS$60.07k0.080% $5.0k
Jose Suarez
Independent Director4.42yrsno datano data
Lori Ell
Chairman2.17yrsUS$77.03k0.14% $8.7k

2.2yrs

Average Tenure

58yo

Average Age

Experienced Board: AJXG.F's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if 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: AJXG.F
  • Exchange: OTCPK
  • Founded: 1990
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$8.780m
  • Listing Market Cap: CA$6.239m
  • Shares outstanding: 117.07m
  • 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 Analysis2020/03/29 03:45
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.