AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
AFN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Machinery industry. AFN has an average financial health and profitability rating. AFN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AFN had positive earnings in the past year.
AFN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AFN reported negative net income in multiple years.
In the past 5 years AFN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -2.25%, AFN perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
AFN has a Return On Equity (-13.49%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 10.08%, AFN belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
AFN had an Average Return On Invested Capital over the past 3 years of 10.97%. This is above the industry average of 8.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -13.49% | ||
| ROIC | 10.08% |
ROA(3y)-0.04%
ROA(5y)-0.72%
ROE(3y)-1.37%
ROE(5y)-4.72%
ROIC(3y)10.97%
ROIC(5y)7.56%
1.3 Margins
Looking at the Operating Margin, with a value of 11.84%, AFN belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of AFN has grown nicely.
AFN has a Gross Margin of 30.98%. This is in the better half of the industry: AFN outperforms 73.68% of its industry peers.
AFN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 30.98% |
OM growth 3Y31.28%
OM growth 5Y11.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.93%
GM growth 5Y3.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AFN is still creating some value.
The number of shares outstanding for AFN has been reduced compared to 1 year ago.
AFN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AFN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that AFN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, AFN is in line with its industry, outperforming 42.11% of the companies in the same industry.
AFN has a debt to FCF ratio of 23.52. This is a negative value and a sign of low solvency as AFN would need 23.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.52, AFN is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
AFN has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
AFN's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. AFN is outperformed by 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.09
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AFN should not have too much problems paying its short term obligations.
The Current ratio of AFN (1.61) is comparable to the rest of the industry.
AFN has a Quick Ratio of 1.10. This is a normal value and indicates that AFN is financially healthy and should not expect problems in meeting its short term obligations.
AFN's Quick ratio of 1.10 is fine compared to the rest of the industry. AFN outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
AFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.62%.
The Earnings Per Share has been growing by 16.02% on average over the past years. This is quite good.
Looking at the last year, AFN shows a decrease in Revenue. The Revenue has decreased by -7.86% in the last year.
AFN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.12% yearly.
EPS 1Y (TTM)-34.62%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-8.85%
3.2 Future
Based on estimates for the next years, AFN will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
AFN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.54% yearly.
EPS Next Y-21.76%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
EPS Next 5YN/A
Revenue Next Year-4.15%
Revenue Next 2Y1.05%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.05 indicates a reasonable valuation of AFN.
Based on the Price/Earnings ratio, AFN is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. AFN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.88, the valuation of AFN can be described as reasonable.
Based on the Price/Forward Earnings ratio, AFN is valued cheaper than 94.74% of the companies in the same industry.
AFN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
94.74% of the companies in the same industry are more expensive than AFN, based on the Enterprise Value to EBITDA ratio.
AFN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFN is cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.46 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
AFN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y3.24%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
AFN has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.56, AFN pays a better dividend. On top of this AFN pays more dividend than 84.21% of the companies listed in the same industry.
With a Dividend Yield of 1.39, AFN pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of AFN decreases each year by -24.17%.
AFN has been paying a dividend for at least 10 years, so it has a reliable track record.
AFN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-24.17%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of AFN are negative and hence is the payout ratio. AFN will probably not be able to sustain this dividend level.
DP-29.4%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
TSX:AFN (7/11/2025, 7:00:00 PM)
42.99
-0.08 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners23.51%
Inst Owner ChangeN/A
Ins Owners5.88%
Ins Owner ChangeN/A
Market Cap802.19M
Analysts78.33
Price Target49.73 (15.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend0.6
Dividend Growth(5Y)-24.17%
DP-29.4%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.39%
Min EPS beat(2)2.49%
Max EPS beat(2)16.28%
EPS beat(4)2
Avg EPS beat(4)-7.2%
Min EPS beat(4)-29.25%
Max EPS beat(4)16.28%
EPS beat(8)4
Avg EPS beat(8)2.34%
EPS beat(12)7
Avg EPS beat(12)9.17%
EPS beat(16)10
Avg EPS beat(16)11.14%
Revenue beat(2)1
Avg Revenue beat(2)4.4%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)12.16%
Revenue beat(4)1
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)12.16%
Revenue beat(8)1
Avg Revenue beat(8)-6.57%
Revenue beat(12)5
Avg Revenue beat(12)-2.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.96%
PT rev (1m)2.36%
PT rev (3m)2.09%
EPS NQ rev (1m)-12.33%
EPS NQ rev (3m)-21.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.05 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.58 | ||
| P/FCF | 19.46 | ||
| P/OCF | 10.93 | ||
| P/B | 2.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.32 |
EPS(TTM)3.89
EY9.05%
EPS(NY)4.84
Fwd EY11.26%
FCF(TTM)2.21
FCFY5.14%
OCF(TTM)3.93
OCFY9.15%
SpS73.79
BVpS15.42
TBVpS-13.53
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -13.49% | ||
| ROCE | 12.59% | ||
| ROIC | 10.08% | ||
| ROICexc | 10.72% | ||
| ROICexgc | 19.25% | ||
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 30.98% | ||
| FCFM | 2.99% |
ROA(3y)-0.04%
ROA(5y)-0.72%
ROE(3y)-1.37%
ROE(5y)-4.72%
ROIC(3y)10.97%
ROIC(5y)7.56%
ROICexc(3y)11.75%
ROICexc(5y)8.08%
ROICexgc(3y)23.67%
ROICexgc(5y)16.62%
ROCE(3y)13.71%
ROCE(5y)9.44%
ROICexcg growth 3Y25.51%
ROICexcg growth 5Y16.69%
ROICexc growth 3Y34.87%
ROICexc growth 5Y19.62%
OM growth 3Y31.28%
OM growth 5Y11.58%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.93%
GM growth 5Y3.48%
F-Score3
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 46.82% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 31.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.38 |
F-Score3
WACC9.26%
ROIC/WACC1.09
Cap/Depr(3y)68.31%
Cap/Depr(5y)70.19%
Cap/Sales(3y)3.18%
Cap/Sales(5y)3.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.62%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-166.67%
EPS Next Y-21.76%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-8.85%
Revenue Next Year-4.15%
Revenue Next 2Y1.05%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
EBIT growth 1Y-7.95%
EBIT growth 3Y38.42%
EBIT growth 5Y19.52%
EBIT Next Year89.18%
EBIT Next 3Y34.58%
EBIT Next 5YN/A
FCF growth 1Y-53.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.44%
OCF growth 3Y41.5%
OCF growth 5Y22.35%