tiprankstipranks
Trending News
More News >
Ag Growth Int'l Inc. (TSE:AFN)
TSX:AFN
Advertisement

Ag Growth International (AFN) AI Stock Analysis

Compare
133 Followers

Top Page

TSE:AFN

Ag Growth International

(TSX:AFN)

Rating:70Outperform
Price Target:
C$45.00
▲(5.78%Upside)
AGI's overall score is driven by strong technical momentum and positive aspects of the earnings call, offset by financial performance challenges and valuation concerns. The company's ability to generate cash flow and capitalize on international growth opportunities are key strengths, while high leverage and profitability issues require careful monitoring.
Positive Factors
Growth Outlook
Strong medium to long-term growth outlook for Ag Growth International is expected.
Stock Recommendation
Analyst recommends buying the stock with a target price set at C$66.00.
Negative Factors
Farm Sector Performance
Farm sector remains weak, impacting performance.
Regulatory Challenges
Regulatory friction undermines near-term outlook.

Ag Growth International (AFN) vs. iShares MSCI Canada ETF (EWC)

Ag Growth International Business Overview & Revenue Model

Company DescriptionAg Growth International Inc., together with its subsidiaries, manufactures and distributes grain and rice handling, storage, and conditioning equipment in Canada, the United States, and internationally. The company offers storage equipment comprising grain and bolted bins, hopper bins, smooth wall bins, temporary storage equipment, unloads and sweeps, water tanks, fuel tanks; and conditioning equipment, such as mixed flow dryers, fans and heaters, aerations, airaugers, aeration floors, vents and exhausters, stirrings, and accessories. It also provides portable handling equipment, such as portable augers, conveyors, grain vacs, post pounders, seed treaters, and accessories; and permanent handling equipment, including bucket elevators, chain and belt conveyors, enclosed belt conveyors, distributors, feed handling equipment, screw feeders and conveyors, and spouts and connections. In addition, the company offers towers, catwalks, ladders, all-steel buildings, flat storage buildings; batch blenders, bulk scales, declining weight blenders, vertical blenders, micro-dosing systems, mixers, milling equipment; and controllers, hazard monitoring equipment, monitoring and automation equipment, sampling solutions. Further, it provides cleaning and destoners, rice milling and processing equipment, bin unloads, blending and control systems, Liquid and dry fertilizer blending and conveying equipment, turnkey design and build construction solutions for seed and fertilizer facilities, and farm management software. The company markets its products under the AGI, Airlanco, Batco, Brownie, CMC, Compass, Danmare, Ezee-dry, Frame, Grain Guard, Grainmaxx, Hi Roller, Hutchinson, Improtech, Junge, Keho, Mayrath, Milltec, MMS, Neco, PTM, REM, Sabe, Sentinel, Storm, Suretrack, Tramco, Twister, Westeel, Westfield, Wheatheart, and Yargus brand names. It provides its equipment for agricultural commodities. The company was founded in 1996 and is headquartered in Winnipeg, Canada.
How the Company Makes MoneyAg Growth International generates revenue primarily through the sale of its agricultural equipment and systems. The company's key revenue streams include the manufacturing and distribution of grain handling, storage, and conditioning products. AFN's earnings are supported by its broad product portfolio, which caters to both the commercial and farming sectors, and its strong global distribution network. Additionally, strategic partnerships with dealers and distributors help expand its market reach and drive sales. The company's focus on innovation and adaptation to market needs also plays a significant role in maintaining its competitive edge and profitability.

Ag Growth International Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 30.81%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in the Commercial segment, particularly in international markets like Brazil and EMEA. However, the call also acknowledged challenges in the North America Farm segment, which impacted overall revenue and margins. Despite these challenges, the company's strong order book and cash flow generation are positive indicators. The sentiment is balanced, with both positive growth in certain areas and significant challenges in others.
Q1-2025 Updates
Positive Updates
Exceptional Commercial Segment Growth
First quarter revenue for the Commercial segment increased by 53% year-over-year to $192 million, driven by large-scale turnkey projects in Brazil and EMEA.
Near Record Order Book
Consolidated order book stands at $725 million, up 5% year-over-year, with the Commercial segment order book up 26% year-over-year.
Strong Performance in International Markets
Commercial revenue from Brazil and EMEA increased significantly, with Brazil's order book up over 200%, demonstrating solid momentum.
Positive Cash Flow Generation
Despite temporary working capital needs, free cash flow was approximately $41 million, indicating good financial management amidst challenges.
Negative Updates
Decline in Consolidated Revenue
Consolidated revenue for Q1 2025 was $287 million, a decrease of 9% compared to Q1 2024, primarily due to challenges in the North America Farm business.
North America Farm Segment Challenges
The Farm segment faced market headwinds due to low crop prices, high dealer inventory, and volatile tariff policies impacting farmer sentiment.
Adjusted EBITDA Margin Decline
Adjusted EBITDA margins declined to 10.9% from 15.9% in Q1 2024, primarily due to a higher weighting of Commercial revenue relative to Farm.
Increased Other Segment Expenses
Other segment expenses increased to $12 million from $8 million year-over-year, largely due to the timing of certain expenses and legal costs.
Company Guidance
In the first quarter of 2025, AGI reported an adjusted EBITDA of $31 million, surpassing the high-end of their expectations. The company achieved consolidated revenue of $287 million, marking a 9% decrease from Q1 2024. Despite challenges in the North American farm business, the commercial segment showed significant strength, with revenue increasing 53% year-over-year to $192 million. This growth was notably driven by large-scale projects in Brazil and EMEA. The commercial segment also saw an expansion in its adjusted EBITDA margin to 12.8%. AGI's consolidated order book reached nearly $725 million, a 5% increase year-over-year, with the commercial segment's order book up 26%. For 2025, AGI maintained its full-year adjusted EBITDA guidance of at least $225 million and projected Q2 adjusted EBITDA between $50 million and $55 million.

Ag Growth International Financial Statement Overview

Summary
Ag Growth International shows mixed financial performance. The income statement reveals declining revenues and negative profitability, while the balance sheet indicates high leverage. Despite these challenges, the company demonstrates strong cash flow generation relative to its earnings, though sustainability is uncertain.
Income Statement
65
Positive
Ag Growth International displays a mixed performance in its income statement. The company has a declining revenue trend with a -2.0% revenue growth rate TTM, and a significant drop from 2023. The gross profit margin of 30.2% and EBIT margin of 10.9% are reasonable, indicating some operational efficiency. However, the net profit margin is concerning at -2.8% due to negative net income, highlighting profitability challenges.
Balance Sheet
60
Neutral
The balance sheet of Ag Growth International shows high leverage with a debt-to-equity ratio of 3.37, posing potential financial risk. The return on equity is negative due to net losses, impacting overall performance. However, the equity ratio stands at a moderate 16.7%, indicating a reasonable proportion of assets funded by equity.
Cash Flow
75
Positive
The cash flow statement suggests a strong operating cash flow to net income ratio of -1.96, showing robust cash generation relative to earnings. The free cash flow to net income ratio is also strong at -1.19, despite the negative net income. However, the free cash flow growth rate has declined sharply by -41.4% over the past year, indicating potential challenges in sustaining free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.40B1.53B1.46B1.20B994.03M
Gross Profit447.99M479.13M420.60M304.01M206.69M
EBITDA135.60M223.07M91.18M116.11M25.31M
Net Income-20.08M68.89M-50.58M10.56M-61.65M
Balance Sheet
Total Assets1.67B1.65B1.65B1.59B1.48B
Cash, Cash Equivalents and Short-Term Investments79.89M88.04M59.64M61.31M62.46M
Total Debt895.16M906.95M916.32M887.23M842.61M
Total Liabilities1.37B1.34B1.38B1.32B1.22B
Stockholders Equity298.44M317.98M265.67M268.75M263.14M
Cash Flow
Free Cash Flow79.15M48.95M49.87M-6.45M34.04M
Operating Cash Flow110.82M105.63M102.17M39.12M74.17M
Investing Cash Flow-36.54M-43.12M-85.77M-75.32M-62.70M
Financing Cash Flow-82.43M-34.11M-18.07M35.05M2.56M

Ag Growth International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.54
Price Trends
50DMA
40.69
Positive
100DMA
37.54
Positive
200DMA
41.90
Positive
Market Momentum
MACD
0.62
Positive
RSI
59.25
Neutral
STOCH
78.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AFN, the sentiment is Positive. The current price of 42.54 is below the 20-day moving average (MA) of 42.57, above the 50-day MA of 40.69, and above the 200-day MA of 41.90, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 78.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AFN.

Ag Growth International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$667.34M7.6810.37%4.74%-2.42%-4.60%
74
Outperform
C$771.65M20.277.93%1.49%152.09%
73
Outperform
C$504.13M12.338.09%6.01%-2.65%-47.65%
73
Outperform
C$1.16B12.219.99%6.25%5.52%-18.01%
70
Outperform
C$799.35M26.96-12.61%1.41%-7.86%-171.51%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
50
Neutral
C$1.20B-9.26%4.00%1.70%-154.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AFN
Ag Growth International
43.04
-13.93
-24.45%
TSE:ALC
Algoma Central
16.35
2.33
16.62%
TSE:ARE
Aecon Group Inc.
19.14
4.07
27.01%
TSE:GDI
GDI Integrated
31.86
-3.58
-10.10%
TSE:MTL
Mullen Group
13.73
-0.12
-0.87%
TSE:WJX
Wajax Corporation
23.30
-1.75
-6.99%

Ag Growth International Corporate Events

Financial Disclosures
AGI Announces Q2 2025 Results Release and Conference Call
Neutral
Jul 9, 2025

Ag Growth International Inc. (AGI) has scheduled a conference call for August 1, 2025, to discuss its second quarter results, which will be released after market close on July 31, 2025. This announcement is significant for stakeholders as it provides insights into AGI’s operational performance and market positioning, potentially impacting investor decisions and industry dynamics.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Dividends
AGI Declares Q2 2025 Dividend of $0.15 Per Share
Positive
Jun 16, 2025

Ag Growth International Inc. has announced a cash dividend of $0.15 per common share for the second quarter of 2025, payable on July 15, 2025. This announcement reflects AGI’s ongoing commitment to delivering shareholder value and maintaining its position in the global food equipment and solutions market.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
AGI Expands Debenture Offering to Enhance Financial Flexibility
Positive
Jun 12, 2025

Ag Growth International Inc. announced the full exercise of the over-allotment option in its offering of convertible unsecured subordinated debentures, increasing the total offering to $97.75 million. The proceeds are intended to repay existing debt, enhancing the company’s financial flexibility for general corporate purposes. This move, supported by a syndicate of major financial institutions, is expected to strengthen AGI’s operational capabilities and market positioning.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
AGI Files Final Prospectus for $85 Million Debenture Offering
Positive
Jun 4, 2025

Ag Growth International Inc. (AGI) has announced the filing of a final short form prospectus for an $85 million offering of senior subordinated unsecured debentures, with an option for underwriters to purchase an additional $12.75 million. This move is expected to enhance AGI’s financial flexibility and support its global operations, with the offering set to close on June 9, 2025, subject to customary conditions.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Business Operations and Strategy
AGI Highlights Sustainability Achievements in 2024 Report
Positive
Jun 2, 2025

Ag Growth International Inc. (AGI) has released its 2024 Sustainability Report, highlighting significant achievements in sustainability, including a strong commitment to global food security, improved safety performance, and a reduction in greenhouse gas emissions intensity. The report outlines AGI’s progress in reducing its environmental impact, fostering a safe and inclusive culture, and maintaining high standards of governance and ethics. Key achievements include a 46% reduction in Lost Time Incident Rate, a 49% reduction in Total Recordable Incident Rate, a 16% reduction in Scope 1 and 2 GHG emissions intensity, and high levels of employee engagement and ethics compliance.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
AGI Announces New Board Chair and Strategic Leadership Appointments
Positive
Jun 2, 2025

Ag Growth International Inc. (AGI) has appointed Daniel Halyk as the new Chair of the Board of Directors, succeeding Janet Giesselman. This leadership change is part of AGI’s strategic plan to enhance governance and shareholder returns, with additional appointments made to strengthen board oversight. The company is focused on executing global growth plans and delivering positive business outcomes.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
AGI Expands Debenture Offering to $85 Million Amid Strong Demand
Positive
May 22, 2025

Ag Growth International Inc. (AGI) has announced an increase in its offering of senior subordinated unsecured debentures to $85 million due to strong demand. The proceeds from this offering are intended to repay the company’s senior operating credit lines, enhancing its financial flexibility for general corporate purposes. The debentures, which will mature in 2030, are expected to bolster AGI’s market positioning by providing additional capital resources.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
AGI Announces $75 Million Debenture Offering and Reaffirms 2025 Outlook
Positive
May 22, 2025

Ag Growth International Inc. (AGI) has announced a $75 million offering of senior subordinated unsecured debentures, with the potential to increase to $86.25 million if the over-allotment option is fully exercised. The proceeds will be used to repay existing debt, enhancing AGI’s financial flexibility and supporting its international commercial growth strategy. This move is part of AGI’s commitment to responsible debt management and maintaining its strong market position. Additionally, AGI has reaffirmed its 2025 financial outlook, including an Adjusted EBITDA guidance of at least $225 million for the full year.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
AGI Announces $75 Million Debenture Offering and Reaffirms 2025 Outlook
Positive
May 22, 2025

Ag Growth International (AGI) has announced a $75 million offering of senior subordinated unsecured debentures, with potential gross proceeds of $86.25 million if the over-allotment option is fully exercised. The proceeds are intended to repay existing debt, enhancing AGI’s financial flexibility to pursue growth opportunities in international markets, while maintaining its commitment to responsible debt management. The company has reaffirmed its 2025 financial outlook, including an Adjusted EBITDA guidance of at least $225 million for the full year, signaling confidence in its strategic direction and market position.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
AGI Secures Shareholder Approval for All Resolutions at Annual Meeting
Positive
May 21, 2025

Ag Growth International Inc. announced the successful approval of all resolutions at its annual shareholders’ meeting, with approximately 63% of outstanding shares represented. The meeting saw the election of directors and approval of resolutions including the appointment of auditors and executive compensation strategy, indicating strong shareholder support and potentially reinforcing AGI’s strategic direction.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
AGI Announces Board Changes Ahead of AGM
Neutral
May 21, 2025

Ag Growth International Inc. announced that Janet Giesselman, the Chair of the Board of Directors, and Anne De Greef-Safft, Chair of the Human Resources and Compensation Committee, will not seek re-election at the upcoming Annual General Meeting. Seven new candidates are standing for election, and a new Chair will be selected in due course. The Board expressed gratitude for the contributions of the departing directors, highlighting their service to AGI and its shareholders.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$47.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Ag Growth International Exceeds Q1 EBITDA Expectations Amid Revenue Decline
Neutral
May 5, 2025

Ag Growth International reported a 9% year-over-year decline in revenue for the first quarter of 2025, totaling $287 million, but exceeded its adjusted EBITDA expectations with $31 million. The company is experiencing strong growth in its international Commercial segment, which helped offset challenges in the Farm segment due to difficult market conditions. Despite a higher commercial revenue weighting impacting margins, AGI maintains a positive outlook for 2025, with a robust order book and strategic focus on international diversification. The company is also addressing tariff impacts and managing its debt levels as it navigates current market dynamics.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 17, 2025