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Ag Growth Int'l Inc. (TSE:AFN)
TSX:AFN
RESEARCH TOOLSreports
Top Page
Ag Growth International
(TSX:AFN)
61Neutral
Positive Factors
Dividends
Credit trends and special dividend are well received.
Operational Efficiency
Operational excellence should sustain EBITDA margin at approximately 19% or more, despite the mix shift to lower-margin Commercial.
Project Performance
Project wins should bode well for future performance, with several large projects recently secured in International markets.
Negative Factors
Agricultural Sector Performance
US Farm has been weaker than expected, with elevated input costs leading to weaker farmers’ income.
Guidance
Q4/24 guidance is below consensus.
Regulatory Challenges
Regulatory friction undermines near-term outlook.
Ag Growth International (AFN) vs. S&P 500 (SPY)
Market Cap
C$687.47M
Dividend Yield1.63%
Average Volume (3M)112.81K
Price to Earnings (P/E)27.0
Beta (1Y)0.79
Revenue Growth-7.99%
EPS Growth-128.98%
CountryCA
Employees5,000
SectorIndustrials
Sector Strength73
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)-1.05
Shares Outstanding18,656,025
10 Day Avg. Volume114,749
30 Day Avg. Volume112,807
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.48
Price to Cash Flow (P/CF)2.90
P/FCF Ratio2.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$46.71Price Target Upside34.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Ag Growth International Business Overview & Revenue Model
Company DescriptionAg Growth International (AFN) is a leading provider of equipment solutions for the agricultural sector, focusing on the storage, handling, and conditioning of grains. The company offers a comprehensive range of products including grain handling systems, storage bins, conditioning equipment, and fertilizer handling solutions. AFN serves a diverse clientele ranging from individual farmers to large agricultural enterprises, supporting their needs across various stages of the agricultural supply chain.
How the Company Makes MoneyAg Growth International makes money primarily through the sale of its agricultural equipment and systems. Its key revenue streams include the sales of grain handling and storage systems, which are essential for the efficient management of agricultural commodities. Additionally, the company generates income from the sale of conditioning equipment, which helps maintain the quality of stored grains. AFN's extensive distribution network and strategic partnerships with agricultural producers and distributors play a significant role in expanding its market reach and driving sales. The company's earnings are also supported by after-sales services, including maintenance and support, which provide ongoing revenue opportunities and strengthen customer relationships.
Ag Growth International Financial Statement Overview
Summary
Ag Growth International demonstrates strong cash flow management and maintains a steady gross profit margin. However, revenue decline and high leverage present challenges. The company should focus on improving profitability and reducing debt to enhance financial health.Income Statement
Ag Growth International's revenue has fluctuated over the years, with a decline from 2023 to 2024. The gross profit margin was approximately 31.9% in 2024, and a concerning net loss was recorded, leading to a negative net profit margin. Despite these challenges, the company had a relatively healthy gross profit margin.65
Positive
Balance Sheet
The company had a relatively high debt-to-equity ratio in 2024, indicating significant leverage, which poses a risk in volatile markets. Stockholders' equity has decreased, affecting the equity ratio. However, total assets have shown stability over the years, reflecting some balance sheet strength.58
Neutral
Cash Flow
Free cash flow improved in 2024 compared to the previous year, and the operating cash flow to net income ratio was strong, indicating efficient cash generation despite net losses. The company has improved its free cash flow position, which is a positive sign amidst revenue challenges.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.40B | 1.53B | 1.46B | 1.20B | 994.03M |
| Gross Profit | ||||
| 447.99M | 479.13M | 420.60M | 304.01M | 206.69M |
| EBIT | ||||
| 0.00 | 187.83M | 131.51M | 73.87M | -2.79M |
| EBITDA | ||||
| 133.62M | 223.07M | 91.18M | 116.11M | 25.31M |
| Net Income Common Stockholders | ||||
| -20.08M | 68.89M | -50.58M | 10.56M | -61.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 79.89M | 88.04M | 59.64M | 61.31M | 62.46M |
| Total Assets | ||||
| 1.67B | 1.65B | 1.65B | 1.59B | 1.48B |
| Total Debt | ||||
| 895.16M | 906.95M | 916.32M | 887.23M | 842.61M |
| Net Debt | ||||
| 815.26M | 818.91M | 856.67M | 825.92M | 780.16M |
| Total Liabilities | ||||
| 1.37B | 1.34B | 1.38B | 1.32B | 1.22B |
| Stockholders Equity | ||||
| 298.44M | 317.98M | 265.67M | 268.75M | 263.14M |
| Cash Flow | Free Cash Flow | |||
| 79.15M | 48.95M | 49.87M | -6.45M | 34.04M |
| Operating Cash Flow | ||||
| 110.82M | 105.63M | 102.17M | 39.12M | 74.17M |
| Investing Cash Flow | ||||
| -36.54M | -43.12M | -85.77M | -75.32M | -62.70M |
| Financing Cash Flow | ||||
| -82.43M | -34.11M | -18.07M | 35.05M | 2.56M |
Ag Growth International Technical Analysis
Negative
34.81
Price Trends
38.11
Negative
44.90
Negative
48.92
Negative
Market Momentum
-0.76
Negative
36.50
Neutral
39.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AFN, the sentiment is Negative. The current price of 34.81 is below the 20-day moving average (MA) of 35.89, below the 50-day MA of 38.11, and below the 200-day MA of 48.92, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AFN.
Ag Growth International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $87.49B | 19.90 | 21.72% | 2.53% | 1.30% | -18.15% | |
71 Outperform | C$1.53B | 13.00 | 6.37% | 4.92% | -4.34% | 42.86% | |
71 Outperform | C$2.41B | 12.12 | 11.45% | 0.41% | 0.56% | 4.94% | |
69 Neutral | C$2.23B | 17.05 | 18.50% | 3.39% | 3.28% | 1.42% | |
68 Neutral | C$983.15M | 42.05 | 3.10% | 2.93% | -0.83% | -77.91% | |
62 Neutral | $8.24B | 13.35 | 1.72% | 3.06% | 3.81% | -14.27% | |
61 Neutral | C$687.47M | 26.96 | -6.52% | 1.63% | -7.99% | -128.98% |
* Industrials Sector Average
Performance Comparison
TSE:AFN
Ag Growth International
34.81
-26.56
-43.28%
TSE:CNR
Canadian National Railway
139.90
-35.48
-20.23%
TSE:MTY
MTY Food Group
42.37
-8.44
-16.60%
TSE:TCL.A
Transcontinental
18.54
4.61
33.09%
TSE:NWC
North West
47.76
10.02
26.55%
TSE:WPK
Winpak Limited
39.00
0.89
2.34%
Ag Growth International Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: 1.02% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
AGI's earnings call presented a mix of strong performance in the commercial segment and record order book, contrasted by significant challenges in the North America farm market and uncertainties related to tariffs. While the commercial segment shows robust growth and operational efficiency, the farm segment faces considerable headwinds and uncertain recovery timelines.Highlights
Record Q4 Adjusted EBITDA
AGI reported a record fourth quarter adjusted EBITDA of $78 million, up 7% year-over-year, highlighting the resilience and strength of their diversified business model.
Strong Commercial Segment Performance
Fourth quarter revenue in the commercial segment increased by 30% year-over-year to $248 million, driven by large-scale projects, particularly in Brazil and EMEA.
Record Consolidated Order Book
AGI's consolidated order book reached a record level of $737 million, up 4% year-over-year and up 11% sequentially from Q3, with the commercial segment showing a 46% year-over-year increase.
Operational Efficiency and Cost Control
Adjusted EBITDA margin expanded to 20.5% for Q4, reflecting improved operational efficiency and cost control measures.
Lowlights
Challenges in North America Farm Market
The farm segment faced significant headwinds with revenue declining by 29% year-over-year to $134 million due to elevated dealer inventories, lower commodity prices, and cautious farmer sentiment.
Uncertain Recovery in Farm Segment
The North America farm market shows limited visibility for recovery, with continued challenging conditions expected through at least the first half of 2025.
Impact of Tariffs and Trade-Related Actions
The potential impact of tariffs and trade-related actions remains uncertain and could affect AGI's business, particularly in the North America farm segment.
Increased Debt Level and Leverage Ratio
Net debt leverage ratio may temporarily expand towards 3.5 times in 2025 due to increasing working capital needs in the commercial segment.
Company Guidance
During the AGI Fourth Quarter 2024 Results Conference Call, President and CEO Paul Householder reported a record fourth quarter adjusted EBITDA of $78 million, marking a 7% increase year-over-year, with consolidated revenue slightly rising to $381 million. The company achieved an adjusted EBITDA margin of 20.5% for the quarter and 18.9% for the full year. The commercial segment, particularly in international regions like Brazil and EMEA, drove a significant 30% increase in fourth-quarter revenue to $248 million, contributing to a record order book of $737 million, up 4% year-over-year. However, the farm segment faced challenges, with a 29% revenue decline due to market headwinds. The guidance for 2025 includes a full-year adjusted EBITDA of at least $225 million and first-quarter adjusted EBITDA between $25 million and $30 million, factoring in ongoing softness in the North America farm market.Ag Growth International Corporate Events
Business Operations and StrategyFinancial Disclosures
AGI Reports Record Q4 2024 Results and Prepares for 2025 Challenges
Positive
Mar 5, 2025
Ag Growth International Inc. reported record fourth-quarter results for 2024, with a 7% increase in adjusted EBITDA to $78 million, despite flat revenue growth. The company also announced a 62% rise in free cash flow and a stable net debt leverage ratio. For 2025, AGI anticipates strong revenue visibility in its Commercial segment but expects weaker conditions in the Farm segment. The company is also preparing to mitigate potential impacts from new tariffs affecting its portable grain handling equipment, which is primarily manufactured in Canada.
Financial Disclosures
AGI to Release Q4 2024 Financial Results and Host Conference Call
Neutral
Feb 5, 2025
Ag Growth International (AGI) has announced the release date for its fourth quarter and full year 2024 financial results, scheduled for March 5, 2025, after market close. The company will host a conference call on March 6, 2025, to discuss these results. The announcement is expected to provide insights into the company’s financial performance and could impact stakeholder perception and market positioning.
AGI Revises 2024 Financial Outlook Amid Market Challenges
Jan 13, 2025
AG Growth International Inc. has updated its financial outlook for 2024, projecting an Adjusted EBITDA of approximately $260 million with margins of around 18.5%. The company attributes this revised guidance to a soft North American farm market and delays in engineering and procurement in Brazil, which have affected early order programs and commercial segment projects. AGI acknowledges these challenges and is cautious about a significant rebound in 2025, but remains focused on maintaining a strong margin profile through tactical adjustments.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.