AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to AFN. AFN was compared to 21 industry peers in the Machinery industry. Both the profitability and the financial health of AFN get a neutral evaluation. Nothing too spectacular is happening here. AFN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year AFN was profitable.
In the past year AFN had a positive cash flow from operations.
In multiple years AFN reported negative net income over the last 5 years.
In the past 5 years AFN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of -2.25%, AFN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AFN's Return On Equity of -13.49% is in line compared to the rest of the industry. AFN outperforms 52.38% of its industry peers.
The Return On Invested Capital of AFN (10.08%) is better than 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFN is above the industry average of 8.62%.
| 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
With an excellent Operating Margin value of 11.84%, AFN belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
AFN's Operating Margin has improved in the last couple of years.
AFN has a Gross Margin of 30.98%. This is in the better half of the industry: AFN outperforms 71.43% 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.
AFN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFN has more shares outstanding
The debt/assets ratio for AFN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that AFN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.36, AFN is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
The Debt to FCF ratio of AFN is 23.52, which is on the high side as it means it would take AFN, 23.52 years of fcf income to pay off all of its debts.
AFN's Debt to FCF ratio of 23.52 is fine compared to the rest of the industry. AFN outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 3.32 is on the high side and indicates that AFN has dependencies on debt 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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.08
WACC9.36%
2.3 Liquidity
AFN has a Current Ratio of 1.61. This is a normal value and indicates that AFN is financially healthy and should not expect problems in meeting 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.
With an excellent Quick ratio value of 1.10, AFN belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for AFN have decreased strongly by -34.62% in the last year.
AFN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.02% yearly.
AFN shows a decrease in Revenue. In the last year, the revenue decreased by -7.86%.
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)-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
AFN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 10.41, the valuation of AFN can be described as very reasonable.
Based on the Price/Earnings ratio, AFN is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AFN to the average of the S&P500 Index (26.31), we can say AFN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.37, the valuation of AFN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFN indicates a rather cheap valuation: AFN is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AFN to the average of the S&P500 Index (22.13), we can say AFN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFN indicates a rather cheap valuation: AFN is cheaper than 100.00% of the companies listed in the same industry.
85.71% of the companies in the same industry are more expensive than AFN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 7.11 |
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)0.65
EPS Next 2Y3.24%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
AFN has a Yearly Dividend Yield of 1.46%.
AFN's Dividend Yield is a higher than the industry average which is at 9.25.
Compared to the average S&P500 Dividend Yield of 2.40, AFN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 (6/13/2025, 7:00:00 PM)
40.5
-0.48 (-1.17%)
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 Cap755.73M
Analysts78.18
Price Target49.98 (23.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)1.42%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)6.21%
Revenue beat(4)1
Avg Revenue beat(4)-5.62%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)6.21%
Revenue beat(8)1
Avg Revenue beat(8)-7.32%
Revenue beat(12)5
Avg Revenue beat(12)-3.05%
Revenue beat(16)6
Avg Revenue beat(16)-2.34%
PT rev (1m)2.89%
PT rev (3m)-11.71%
EPS NQ rev (1m)-10.26%
EPS NQ rev (3m)-10.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.58%
Revenue NQ rev (1m)-1.35%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.37 | ||
| P/S | 0.55 | ||
| P/FCF | 18.34 | ||
| P/OCF | 10.29 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)3.89
EY9.6%
EPS(NY)4.84
Fwd EY11.95%
FCF(TTM)2.21
FCFY5.45%
OCF(TTM)3.93
OCFY9.71%
SpS73.79
BVpS15.42
TBVpS-13.53
PEG (NY)N/A
PEG (5Y)0.65
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 | 1.36 |
F-Score3
WACC9.36%
ROIC/WACC1.08
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%