Education
About Us
Working with TipRanks
Follow Us
Ag Growth Int'l Inc. (TSE:AFN)
TSX:AFN
Top Page
Ag Growth International
(TSX:AFN)
Select Model
Select Model
Rating:38Underperform
Price Target:
C$30.00
▼(-7.15% Downside)
Ag Growth International's stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's high leverage and negative earnings contribute to a challenging valuation. While the earnings call provided some positive insights, the overall financial and technical outlook remains concerning.
Positive Factors
Strong Commercial Segment Performance
The strong performance in the Commercial segment, with significant EBITDA growth, indicates robust demand and operational efficiency, supporting long-term revenue stability.
International Market Successes
Success in international markets like Brazil and EMEA enhances market diversification, reducing dependence on domestic markets and providing growth opportunities.
Order Book Stability
A stable and growing order book reflects sustained demand and future revenue visibility, supporting long-term business planning and financial health.
Negative Factors
Farm Segment Challenges
Ongoing challenges in the Farm segment could hinder revenue growth and profitability, as external factors like commodity prices and tariffs impact demand.
Elevated Net Debt Leverage
High net debt leverage limits financial flexibility and increases risk, necessitating effective debt management to ensure long-term financial stability.
ERP Implementation Costs
Prolonged ERP implementation costs may strain financial resources, affecting profitability and cash flow, though they could improve operational efficiency long-term.
Ag Growth International (AFN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$651.24M
Dividend Yield1.86%
Average Volume (3M)56.24K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-5.64%
EPS Growth-121.91%
CountryCA
Employees3,679
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.26
Shares Outstanding18,800,190
10 Day Avg. Volume59,727
30 Day Avg. Volume56,245
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)3.24
Price to Sales (P/S)0.69
P/FCF Ratio12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.67Price Target Upside53.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ag Growth International Business Overview & Revenue Model
Company DescriptionAg Growth International (AFN) is a leading provider of grain handling, storage, and conditioning equipment, primarily serving the agricultural sector. With a diverse portfolio, the company operates in various segments, including grain handling, storage, and aeration systems, as well as equipment for feed and fertilizer handling. AFN is known for its innovative solutions that enhance productivity and efficiency in the agricultural supply chain, catering to both domestic and international markets.
How the Company Makes MoneyAg 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong performance in the Commercial segment, particularly in international markets like Brazil and EMEA, with a stable and growing order book. However, challenges in the Farm segment and increased debt leverage are notable concerns. The company's focus on monetizing receivables to improve financial metrics and the strong commercial pipeline provide confidence in future performance.Q2-2025 Updates
Positive Updates
Strong Commercial Segment Performance
Commercial segment revenue increased with EBITDA contribution of $37 million, up 58% year-over-year. The EBITDA margin for the overall commercial segment increased to 16.6% from 14.8% in Q2 2024.
International Market Successes
Significant project wins and execution in Brazil and EMEA, with Brazil's commercial order book up 15% year-over-year. The order book for the Commercial segment accounts for 85% of the total order book.
Order Book Stability
Consolidated order book stands at $660 million, up 4% year-over-year, with additional $100 million+ in commitments post-quarter.
Debt Reduction Strategy
Initiatives to monetize Brazilian receivables are expected to reduce net debt leverage ratio to low to mid-3x range by year-end.
SG&A Cost Improvements
Total company SG&A costs improved year-over-year as a percentage of revenue, with operational excellence initiatives optimizing spend.
Negative Updates
Farm Segment Challenges
Persistent challenges in the Farm segment due to soft commodity prices, shifting tariff policies, and high dealer channel inventories.
Increased Other Segment Expenses
Other segment expenses increased to $12 million from $8 million year-over-year, driven by reduced miscellaneous other income and variable compensation accruals.
Elevated Net Debt Leverage
Net debt leverage ratio increased to 3.9x, reflecting sizable but temporary working capital investments required for large-scale projects.
ERP Implementation Costs
Ongoing ERP implementation costs expected to persist through 2027, impacting financials over the coming years.
Company Guidance
In the AGI Second Quarter 2025 Results Conference Call, the company provided guidance for the year, maintaining its outlook for full year adjusted EBITDA of at least $225 million. This guidance reflects a shift in the mix, with stronger expectations for the Commercial segment offsetting tempered expectations for the Farm segment. In Q2 2025, AGI reported adjusted EBITDA of $54 million, aligning with the high end of their expectations, and consolidated revenue of $349 million, approximately flat compared to Q2 2024. The Commercial segment's strong performance was highlighted by a year-over-year increase in EBITDA contribution to $37 million, a 58% rise, with notable growth in regions like Brazil, EMEA, and North America. Despite challenges in the Farm segment, AGI's consolidated order book reached $660 million, up 4% year-over-year, with the Commercial segment accounting for approximately 85% of the overall order book. The company remains focused on maintaining a net debt leverage ratio in the low to mid-3x range by the end of 2025 through strategic financial arrangements and effective capital allocation.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.45
Neutral
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.40
Negative
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.35
Negative
| 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
Negative
32.31
Price Trends
37.07
Negative
39.52
Negative
37.77
Negative
Market Momentum
-0.87
Positive
26.45
Positive
2.54
Positive
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 32.31 is below the 20-day moving average (MA) of 35.08, below the 50-day MA of 37.07, and below the 200-day MA of 37.77, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 26.45 is Positive, neither overbought nor oversold. The STOCH value of 2.54 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$1.22B | 12.83 | 9.33% | 5.93% | 5.53% | -21.87% | |
73 Outperform | C$541.89M | 11.76 | 8.84% | 5.14% | 3.71% | -12.70% | |
68 Neutral | C$710.75M | 7.04 | 11.43% | 4.50% | 8.54% | 33.89% | |
67 Neutral | C$700.56M | 20.01 | 8.55% | ― | -2.83% | 179.03% | |
64 Neutral | C$1.83B | 222.05 | 0.92% | 2.61% | 25.68% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
38 Underperform | C$651.24M | -96.90 | -2.30% | 1.86% | -5.64% | -121.91% |
* Industrials Sector Average
TSE:AFN
Ag Growth International
32.31
-19.29
-37.38%
TSE:ALC
Algoma Central
18.00
3.76
26.40%
TSE:ARE
Aecon Group Inc.
29.12
1.82
6.67%
TSE:GDI
GDI Integrated
29.00
-7.80
-21.20%
TSE:MTL
Mullen Group
14.16
-0.49
-3.34%
TSE:WJX
Wajax Corporation
27.23
7.59
38.65%
Ag Growth International Corporate Events
Business Operations and StrategyFinancial Disclosures
AGI Reschedules Q3 2025 Results Call Due to Increased International Revenue
Positive
Oct 30, 2025
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.
Financial Disclosures
AGI to Announce Q3 2025 Results and Host Conference Call
Neutral
Oct 7, 2025
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.
Business Operations and StrategyPrivate Placements and Financing
AGI Launches New Financing Structure for Brazilian Projects
Positive
Sep 24, 2025
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.
Dividends
AGI Declares Q3 2025 Dividend, Reinforcing Shareholder Value
Positive
Sep 16, 2025
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.
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.