AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
Overall AFN gets a fundamental rating of 5 out of 10. We evaluated AFN against 20 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
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
AFN has a Return On Assets of -2.25%. This is comparable to the rest of the industry: AFN outperforms 55.00% of its industry peers.
AFN has a Return On Equity (-13.49%) which is comparable to the rest of the industry.
AFN has a better Return On Invested Capital (10.08%) than 95.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFN is above the industry average of 7.94%.
| 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 95.00% of the companies in the same industry.
AFN's Operating Margin has improved in the last couple of years.
AFN has a better Gross Margin (30.98%) than 70.00% 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.
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
AFN has an Altman-Z score of 1.38. This is a bad value and indicates that AFN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AFN (1.38) is worse than 60.00% of its industry peers.
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 75.00% 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.
With a Debt to Equity ratio value of 3.32, AFN is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.12
WACC9%
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.
AFN has a Current ratio of 1.61. This is comparable to the rest of the industry: AFN outperforms 55.00% of its industry peers.
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.
The Quick ratio of AFN (1.10) is better than 80.00% 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%.
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%.
The Revenue has been growing slightly by 7.12% on average over the past years.
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-3.94%
Revenue Next 2Y1.36%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.99, the valuation of AFN can be described as very reasonable.
AFN's Price/Earnings ratio is rather cheap when compared to the industry. AFN is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. AFN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.83, 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 95.00% of the companies are valued more expensively.
AFN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
AFN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFN is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
The decent profitability rating of AFN 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 1.43%.
AFN's Dividend Yield is a higher than the industry average which is at 1.85.
With a Dividend Yield of 1.43, AFN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
AFN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-29.4%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
TSX:AFN (8/1/2025, 7:00:00 PM)
42.75
+0.91 (+2.17%)
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 Cap797.72M
Analysts78.33
Price Target51.13 (19.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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)2.82%
PT rev (3m)5.25%
EPS NQ rev (1m)2.04%
EPS NQ rev (3m)-19.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 8.83 | ||
| P/S | 0.58 | ||
| P/FCF | 19.35 | ||
| P/OCF | 10.87 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)3.89
EY9.1%
EPS(NY)4.84
Fwd EY11.32%
FCF(TTM)2.21
FCFY5.17%
OCF(TTM)3.93
OCFY9.2%
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%
ROIC/WACC1.12
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-3.94%
Revenue Next 2Y1.36%
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%