Ag Growth International (AFN) AI Stock Analysis

• Market Cap: C$651.24M
• Dividend Yield: 2.9%
• Average Volume (3M): 56.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -5.64%
• EPS Growth: -121.91%
• Country: CA
• Employees: 3,679
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.04
• Shares Outstanding: 18,800,190
• 10 Day Avg. Volume: 59,727
• 30 Day Avg. Volume: 56,245
• PEG Ratio: 0.38
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 12.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$38.80
• Price Target Upside: 87.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: C$21.00 ▲(1.45% Upside)

Ag Growth International's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage and declining revenues are significant concerns, although there is some optimism from the strong performance in the Commercial segment and strategic initiatives to improve financial metrics. The valuation remains challenging with a negative P/E ratio, but the dividend yield offers some investor return.

Positive Factors

Strong Commercial Segment Performance

The significant growth in the Commercial segment's EBITDA contribution indicates robust demand and effective execution, enhancing long-term revenue stability.

International Market Successes

Success in international markets like Brazil and EMEA diversifies revenue sources and reduces dependency on domestic markets, supporting sustainable growth.

Order Book Stability

A stable and growing order book provides visibility into future revenues, supporting long-term planning and financial stability.

Negative Factors

High Leverage

Elevated leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth opportunities.

ERP Implementation Costs

Prolonged ERP costs will strain financials, potentially impacting profitability and diverting resources from other strategic initiatives.

Farm Segment Challenges

Ongoing difficulties in the Farm segment could hinder overall revenue growth and profitability, affecting the company's market position.

Ag Growth International Business Overview & Revenue Model

Company Description

Ag 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 Money

Ag Growth International generates revenue through the sale of its core products, which include grain handling and storage systems, as well as equipment for feed and fertilizer handling. The company's revenue model is primarily based on direct sales to farmers, agricultural cooperatives, and commercial grain handling operations. Key revenue streams include equipment sales, aftermarket services, and parts sales. Additionally, AFN benefits from strategic partnerships with other agricultural businesses, enhancing its market reach and product offerings. The company also engages in international markets, which contributes to diversified revenue sources and reduces dependency on any single market.

Ag Growth International Financial Statement Overview

Summary

Ag Growth International faces significant financial challenges, with declining revenues, high leverage, and weak cash flow metrics. While there are some operational efficiencies, the overall financial health is concerning, requiring strategic improvements in revenue generation and debt management to enhance stability and profitability.

Income Statement

Ag Growth International's income statement shows a challenging period with declining revenues and negative net profit margins in the TTM. The gross profit margin remains relatively stable, but the significant drop in revenue growth rate and negative net income indicate financial stress. EBIT and EBITDA margins have improved slightly, suggesting some operational efficiency gains.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio exceeding 3, indicating potential financial risk. The return on equity is negative, highlighting profitability challenges. The equity ratio is relatively low, suggesting limited financial stability. These factors point to a need for improved capital management.

Cash Flow

Cash flow analysis reveals a sharp decline in free cash flow growth, raising concerns about liquidity. The operating cash flow to net income ratio is low, indicating potential cash flow issues. The free cash flow to net income ratio is also weak, suggesting limited cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.40B	1.53B	1.46B	1.20B	994.03M
Gross Profit	402.67M	447.99M	479.13M	420.60M	304.01M	206.69M
EBITDA	210.27M	133.62M	223.07M	91.18M	116.11M	25.31M
Net Income	-6.91M	-20.08M	68.89M	-50.58M	10.56M	-61.65M
Balance Sheet
Total Assets	1.66B	1.67B	1.65B	1.65B	1.59B	1.48B
Cash, Cash Equivalents and Short-Term Investments	47.53M	79.89M	88.04M	59.64M	61.31M	62.46M
Total Debt	952.09M	895.16M	906.95M	916.32M	887.23M	842.61M
Total Liabilities	1.37B	1.37B	1.34B	1.38B	1.32B	1.22B
Stockholders Equity	288.95M	298.44M	317.98M	265.67M	268.75M	263.14M
Cash Flow
Free Cash Flow	1.21M	79.15M	48.95M	49.87M	-6.45M	34.04M
Operating Cash Flow	30.74M	110.82M	105.63M	102.17M	39.12M	74.17M
Investing Cash Flow	-38.90M	-36.54M	-43.12M	-85.77M	-75.32M	-62.70M
Financing Cash Flow	-30.22M	-82.43M	-34.11M	-18.07M	35.05M	2.56M

Ag Growth International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 20.7 is below the 20-day moving average (MA) of 24.78, below the 50-day MA of 31.49, and below the 200-day MA of 36.51, indicating a bearish trend. The MACD of -3.50 indicates Negative momentum. The RSI at 29.61 is Positive, neither overbought nor oversold. The STOCH value of 69.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	78 Outperform	C$1.22B	12.83	9.33%	5.76%	5.53%	-21.87%
ALC	77 Outperform	C$710.75M	7.04	11.43%	4.23%	8.54%	33.89%
WJX	73 Outperform	C$541.89M	11.76	8.84%	5.11%	3.71%	-12.70%
GDI	67 Neutral	C$700.56M	20.01	8.55%	―	-2.83%	179.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARE	62 Neutral	C$1.83B	222.05	0.92%	2.73%	25.68%	―
AFN	42 Neutral	C$651.24M	-96.90	-2.30%	2.90%	-5.64%	-121.91%

Ag Growth International Corporate Events

AGI Delays Q3 2025 Financial Results Amid Brazilian Operations Review

Ag Growth International Inc. has announced a delay in filing its third-quarter 2025 financial results due to the need for additional time to finalize accounting treatments related to its operations in Brazil. The company is working closely with auditors and has applied for a management cease trade order to restrict trading by its executives until the filings are completed. This delay has also led to the withdrawal of its previously issued Adjusted EBITDA guidance for the full year 2025, indicating potential impacts on its financial outlook.

The most recent analyst rating on (TSE:AFN) stock is a Sell with a C$30.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

AGI Reschedules Q3 2025 Results Call Due to Increased International Revenue

Ag Growth International Inc. (AGI) has rescheduled its conference call to discuss third-quarter 2025 results to November 14, 2025, due to auditors needing more time for their review of increased international revenue. This change reflects AGI’s expanding global operations and highlights the company’s growing international market presence.

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.

AGI to Announce Q3 2025 Results and Host Conference Call

Ag Growth International Inc. (AGI) has scheduled a conference call on November 4, 2025, to discuss its third-quarter results for the period ending September 30, 2025. The announcement of these results, which will be released after markets close on November 3, 2025, could provide insights into AGI’s operational performance and market positioning, potentially impacting stakeholders’ perspectives.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

AGI Launches New Financing Structure for Brazilian Projects

Ag Growth International Inc. has announced the creation of a new financing structure to support large-scale grain storage and handling projects for commercial customers in Brazil. This investment fund aims to monetize long-term receivables from AGI Brazil’s projects, with an initial target capacity of BRL 1.2 billion (approximately CAD $300 million). The fund is expected to enhance AGI’s competitive advantage in the Brazilian market, streamline financing processes, and optimize working capital, thereby facilitating the development of crucial agricultural infrastructure in the region.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

AGI Declares Q3 2025 Dividend, Reinforcing Shareholder Value

Ag Growth International Inc. has declared a cash dividend of $0.15 per common share for the third quarter of 2025, payable on October 15 to shareholders of record as of September 30. This announcement reflects AGI’s ongoing commitment to delivering shareholder value and may positively impact investor confidence, reinforcing its stable financial position in the industry.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.