Ag Growth International (AFN) AI Stock Analysis

• Market Cap: C$589.16M
• Dividend Yield: 1.9%
• Average Volume (3M): 131.32K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.80
• Revenue Growth: -7.99%
• EPS Growth: -128.98%
• Country: CA
• Employees: 3,679
• Sector: Industrials
• Sector Strength: 69
• Industry: Agricultural - Machinery
• EPS (TTM): -1.05
• Shares Outstanding: 18,656,025
• 10 Day Avg. Volume: 145,879
• 30 Day Avg. Volume: 131,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.47
• Price to Cash Flow (P/CF): 4.30
• P/FCF Ratio: 1.80
• 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$46.43
• Price Target Upside: 47.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Ag Growth International's overall stock score of 55 reflects a mix of strong cash flow management and operational efficiency, offset by declining revenues, high leverage, and challenges in the North America farm market. The technical analysis indicates bearish trends, and the negative P/E ratio further weighs on the stock's attractiveness. Despite strong performance in the commercial segment, uncertainties in the farm market and potential impacts from tariffs are significant concerns.

Positive Factors

Dividends and Credit Trends

Credit trends and special dividend are well received.

Project Wins

Project wins should bode well for future performance, with several large projects recently secured in International markets.

Negative Factors

Agricultural Sector Challenges

US Farm has been weaker than expected, with elevated input costs leading to weaker farmers’ income.

Guidance and Expectations

Q4/24 guidance is below consensus.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 31.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 31.58 is below the 20-day moving average (MA) of 34.19, below the 50-day MA of 35.67, and below the 200-day MA of 47.33, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 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
NWC	80 Outperform	C$2.51B	18.23	18.85%	3.02%	4.23%	6.08%
CNR	71 Outperform	$86.90B	19.76	21.72%	2.47%	1.30%	-18.15%
TCL.A	71 Outperform	C$1.44B	9.02	8.50%	5.21%	-4.75%	68.04%
WPK	71 Outperform	C$2.48B	12.47	11.45%	0.40%	0.56%	4.94%
MTY	68 Neutral	$910.32M	128.56	1.11%	2.98%	0.33%	-92.77%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
AFN	55 Neutral	C$589.16M	26.96	-6.52%	1.90%	-7.99%	-128.98%

Ag Growth International Corporate Events

AGI Announces Board Refreshment with New Independent Directors

Ag Growth International Inc. has announced the nomination of three new independent directors, Jean-Philippe Choquette, Daniel Halyk, and Corrine Ricard, to its board. This move follows a thorough search process and aims to bring diverse expertise to the company as it continues to advance its strategic goals. The board will also see the retirement of directors Bill Maslechko and David White, and current Board Chair Janet Giesselman plans to retire in 2026, allowing for a smooth transition. These changes are expected to strengthen AGI’s governance and support its growth trajectory.

Spark’s Take on TSE:AFN Stock

According to Spark, TipRanks’ AI Analyst, (TSE:AFN) is a Neutral.

Ag Growth International’s stock score reflects a mix of strong cash flow management and operational efficiency, offset by revenue decline, high leverage, and challenges in the North America farm market. The bearish technical indicators and negative P/E ratio further weigh on the stock’s attractiveness.

To see Spark’s full report on (TSE:AFN) stock, click here.

AGI Schedules Q1 2025 Results Conference Call

Ag Growth International Inc. (AGI) has announced a conference call scheduled for May 6, 2025, to discuss its first-quarter results for the period ending March 31, 2025. The results will be released after market close on May 5, 2025, and stakeholders can access the call via webcast or dial-in options. This announcement highlights AGI’s commitment to transparency and engagement with its stakeholders, potentially impacting investor confidence and market positioning.

AGI Reports Record Q4 2024 Results and Prepares for 2025 Challenges

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.

AGI to Release Q4 2024 Financial Results and Host Conference Call

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.