AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - CA0011811068 - Common Stock
41.85 CAD
-0.15 (-0.36%)
We assign a fundamental rating of 5 out of 10 to AFN. AFN was compared to 22 industry peers in the Machinery industry. AFN has an average financial health and profitability rating. AFN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AFN had positive earnings in the past year.
In the past year AFN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AFN reported negative net income in multiple years.
AFN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of -0.42%, AFN is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Equity value of -2.39%, AFN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Return On Invested Capital of AFN (9.43%) is better than 95.45% of its industry peers.
AFN had an Average Return On Invested Capital over the past 3 years of 10.97%. This is above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -2.39% | ||
| ROIC | 9.43% |
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
With an excellent Operating Margin value of 10.96%, AFN belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of AFN has grown nicely.
AFN's Gross Margin of 29.74% is fine compared to the rest of the industry. AFN outperforms 72.73% of its industry peers.
AFN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 29.74% |
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
AFN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AFN has been reduced compared to 1 year ago.
The number of shares outstanding for AFN has been increased compared to 5 years ago.
The debt/assets ratio for AFN has been reduced compared to a year ago.
2.2 Solvency
AFN has an Altman-Z score of 1.41. This is a bad value and indicates that AFN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.41, AFN is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
The Debt to FCF ratio of AFN is 2850.57, which is on the high side as it means it would take AFN, 2850.57 years of fcf income to pay off all of its debts.
AFN has a Debt to FCF ratio of 2850.57. This is in the better half of the industry: AFN outperforms 68.18% of its industry peers.
A Debt/Equity ratio of 3.26 is on the high side and indicates that AFN has dependencies on debt financing.
With a Debt to Equity ratio value of 3.26, AFN is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 2850.57 | ||
| Altman-Z | 1.41 |
ROIC/WACC1
WACC9.45%
2.3 Liquidity
AFN has a Current Ratio of 1.64. This is a normal value and indicates that AFN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.64, AFN is in line with its industry, outperforming 59.09% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that AFN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, AFN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
AFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.78%.
The Earnings Per Share has been growing by 16.02% on average over the past years. This is quite good.
The Revenue has decreased by -5.64% in the past year.
Measured over the past years, AFN shows a small growth in Revenue. The Revenue has been growing by 7.12% on average per year.
EPS 1Y (TTM)-46.78%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-81.69%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-0.92%
3.2 Future
AFN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.73% yearly.
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-38.06%
EPS Next 2Y0.26%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year-2.11%
Revenue Next 2Y1.99%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.33 indicates a correct valuation of AFN.
Based on the Price/Earnings ratio, AFN is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, AFN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.17, the valuation of AFN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AFN is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
AFN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 9.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
AFN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AFN is cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2338.08 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The decent profitability rating of AFN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y0.26%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
AFN has a Yearly Dividend Yield of 1.45%.
AFN's Dividend Yield is a higher than the industry average which is at 9.01.
AFN's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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-164.52%
EPS Next 2Y0.26%
EPS Next 3Y7.73%
TSX:AFN (8/26/2025, 7:00:00 PM)
41.85
-0.15 (-0.36%)
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 Cap780.92M
Analysts78.33
Price Target54.7 (30.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.6
Dividend Growth(5Y)-24.17%
DP-164.52%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.37%
Min EPS beat(2)-63.22%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)-18.43%
Min EPS beat(4)-63.22%
Max EPS beat(4)16.28%
EPS beat(8)3
Avg EPS beat(8)-12.79%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)9
Avg EPS beat(16)4.13%
Revenue beat(2)2
Avg Revenue beat(2)9.19%
Min Revenue beat(2)6.21%
Max Revenue beat(2)12.16%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)12.16%
Revenue beat(8)2
Avg Revenue beat(8)-4.57%
Revenue beat(12)5
Avg Revenue beat(12)-2.66%
Revenue beat(16)7
Avg Revenue beat(16)-1.36%
PT rev (1m)6.98%
PT rev (3m)12.6%
EPS NQ rev (1m)-11.76%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-20.84%
EPS NY rev (3m)-20.84%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 9.17 | ||
| P/S | 0.57 | ||
| P/FCF | 2338.08 | ||
| P/OCF | 25.41 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.76 |
EPS(TTM)2.73
EY6.52%
EPS(NY)4.56
Fwd EY10.91%
FCF(TTM)0.02
FCFY0.04%
OCF(TTM)1.65
OCFY3.94%
SpS73.61
BVpS15.49
TBVpS-12.83
PEG (NY)N/A
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -2.39% | ||
| ROCE | 11.78% | ||
| ROIC | 9.43% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 17.16% | ||
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 29.74% | ||
| FCFM | 0.02% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 2850.57 | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 14.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.41 |
F-Score3
WACC9.45%
ROIC/WACC1
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)-46.78%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-81.69%
EPS Next Y-38.06%
EPS Next 2Y0.26%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-0.92%
Revenue Next Year-2.11%
Revenue Next 2Y1.99%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
EBIT growth 1Y-14.76%
EBIT growth 3Y38.42%
EBIT growth 5Y19.52%
EBIT Next Year89.18%
EBIT Next 3Y34.58%
EBIT Next 5YN/A
FCF growth 1Y-99.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.15%
OCF growth 3Y41.5%
OCF growth 5Y22.35%