Ag Growth International (AFN) AI Stock Analysis

• Market Cap: C$799.35M
• Dividend Yield: 1.41%
• Average Volume (3M): 38.75K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.86
• Revenue Growth: -7.86%
• EPS Growth: -171.51%
• Country: CA
• Employees: 3,679
• Sector: Industrials
• Sector Strength: 94
• Industry: Agricultural - Machinery
• EPS (TTM): -0.26
• Shares Outstanding: 18,790,550
• 10 Day Avg. Volume: 38,996
• 30 Day Avg. Volume: 38,751
• PEG Ratio: 0.22
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.27
• 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$49.71
• Price Target Upside: 16.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• 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 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 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 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

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

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

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.

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
EBITDA	135.60M	223.07M	91.18M	116.11M	25.31M
Net Income	-20.08M	68.89M	-50.58M	10.56M	-61.65M
Balance Sheet
Total Assets	1.67B	1.65B	1.65B	1.59B	1.48B
Cash, Cash Equivalents and Short-Term Investments	79.89M	88.04M	59.64M	61.31M	62.46M
Total Debt	895.16M	906.95M	916.32M	887.23M	842.61M
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

• Technical Analysis Sentiment: Positive
• Last Price: 42.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALC	75 Outperform	C$667.34M	7.68	10.37%	4.74%	-2.42%	-4.60%
GDI	74 Outperform	C$771.65M	20.27	7.93%	―	1.49%	152.09%
WJX	73 Outperform	C$504.13M	12.33	8.09%	6.01%	-2.65%	-47.65%
MTL	73 Outperform	C$1.16B	12.21	9.99%	6.25%	5.52%	-18.01%
AFN	70 Outperform	C$799.35M	26.96	-12.61%	1.41%	-7.86%	-171.51%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
ARE	50 Neutral	C$1.20B	―	-9.26%	4.00%	1.70%	-154.73%

Ag Growth International Corporate Events

AGI Announces Q2 2025 Results Release and Conference Call

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.

AGI Declares Q2 2025 Dividend of $0.15 Per Share

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.

AGI Expands Debenture Offering to Enhance Financial Flexibility

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.

AGI Files Final Prospectus for $85 Million Debenture Offering

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.

AGI Highlights Sustainability Achievements in 2024 Report

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.

AGI Announces New Board Chair and Strategic Leadership Appointments

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.

AGI Expands Debenture Offering to $85 Million Amid Strong Demand

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.

AGI Announces $75 Million Debenture Offering and Reaffirms 2025 Outlook

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.

AGI Announces $75 Million Debenture Offering and Reaffirms 2025 Outlook

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.

AGI Secures Shareholder Approval for All Resolutions at Annual Meeting

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.

AGI Announces Board Changes Ahead of AGM

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.

Ag Growth International Exceeds Q1 EBITDA Expectations Amid Revenue Decline

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.