AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
Taking everything into account, AFN scores 5 out of 10 in our fundamental rating. AFN was compared to 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.
AFN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFN has a better Return On Assets (-1.20%) than 65.00% of its industry peers.
AFN's Return On Equity of -6.73% is in line compared to the rest of the industry. AFN outperforms 60.00% of its industry peers.
AFN's Return On Invested Capital of 11.66% is amongst the best of the industry. AFN outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFN is in line with the industry average of 10.00%.
The 3 year average ROIC (10.97%) for AFN is below the current ROIC(11.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.2% | ||
| ROE | -6.73% | ||
| ROIC | 11.66% |
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
AFN's Operating Margin of 12.80% is amongst the best of the industry. AFN outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of AFN has grown nicely.
Looking at the Gross Margin, with a value of 31.89%, AFN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AFN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.8% | ||
| PM (TTM) | N/A | ||
| GM | 31.89% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AFN is creating some value.
Compared to 1 year ago, AFN has less shares outstanding
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
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.
AFN has a Altman-Z score of 1.41. This is in the lower half of the industry: AFN underperforms 60.00% of its industry peers.
The Debt to FCF ratio of AFN is 11.31, which is on the high side as it means it would take AFN, 11.31 years of fcf income to pay off all of its debts.
AFN has a better Debt to FCF ratio (11.31) than 75.00% of its industry peers.
A Debt/Equity ratio of 2.96 is on the high side and indicates that AFN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.96, AFN is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | 11.31 | ||
| Altman-Z | 1.41 |
ROIC/WACC1.29
WACC9.01%
2.3 Liquidity
AFN has a Current Ratio of 1.54. 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 (1.54) 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 has a Quick ratio of 1.10. This is in the better half of the industry: AFN outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for AFN have decreased strongly by -21.86% in the last year.
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 -7.99% 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)-21.86%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-13.53%
Revenue 1Y (TTM)-7.99%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%0.49%
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.
Based on estimates for the next years, AFN will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y-21.76%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
EPS Next 5YN/A
Revenue Next Year-4.86%
Revenue Next 2Y1.05%
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
With a Price/Earnings ratio of 7.22, the valuation of AFN can be described as very cheap.
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.
AFN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
A Price/Forward Earnings ratio of 9.23 indicates a reasonable valuation of AFN.
Based on the Price/Forward Earnings ratio, AFN is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AFN to the average of the S&P500 Index (20.86), we can say AFN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AFN is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.73 | ||
| EV/EBITDA | 5.74 |
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)0.45
EPS Next 2Y3.24%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, AFN has a reasonable but not impressive dividend return.
AFN's Dividend Yield is a higher than the industry average which is at 1.89.
Compared to the average S&P500 Dividend Yield of 2.44, AFN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of AFN decreases each year by -24.17%.
AFN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AFN decreased in the last 3 years.
Dividend Growth(5Y)-24.17%
Div Incr Years0
Div Non Decr Years2
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-56.93%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
TSX:AFN (5/1/2025, 7:00:00 PM)
32.78
-0.44 (-1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners26.76%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap611.67M
Analysts76.67
Price Target48.58 (48.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.6
Dividend Growth(5Y)-24.17%
DP-56.93%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.49%
Min EPS beat(2)-29.25%
Max EPS beat(2)16.28%
EPS beat(4)1
Avg EPS beat(4)-19.26%
Min EPS beat(4)-45.74%
Max EPS beat(4)16.28%
EPS beat(8)3
Avg EPS beat(8)-5.55%
EPS beat(12)6
Avg EPS beat(12)2.72%
EPS beat(16)10
Avg EPS beat(16)16.82%
Revenue beat(2)0
Avg Revenue beat(2)-8.37%
Min Revenue beat(2)-13.37%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-10.36%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-3.37%
Revenue beat(8)1
Avg Revenue beat(8)-7.43%
Revenue beat(12)4
Avg Revenue beat(12)-3.89%
Revenue beat(16)5
Avg Revenue beat(16)-2.82%
PT rev (1m)-14.19%
PT rev (3m)-34.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-119.06%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-41.88%
Revenue NQ rev (1m)2.9%
Revenue NQ rev (3m)-31.17%
Revenue NY rev (1m)-5.52%
Revenue NY rev (3m)-7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 9.23 | ||
| P/S | 0.44 | ||
| P/FCF | 7.73 | ||
| P/OCF | 5.52 | ||
| P/B | 2.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)4.54
EY13.85%
EPS(NY)3.55
Fwd EY10.84%
FCF(TTM)4.24
FCFY12.94%
OCF(TTM)5.94
OCFY18.12%
SpS75.28
BVpS15.99
TBVpS-13.08
PEG (NY)N/A
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.2% | ||
| ROE | -6.73% | ||
| ROCE | 14.57% | ||
| ROIC | 11.66% | ||
| ROICexc | 12.47% | ||
| ROICexgc | 23.53% | ||
| OM | 12.8% | ||
| PM (TTM) | N/A | ||
| GM | 31.89% | ||
| FCFM | 5.63% |
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-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.96 | ||
| Debt/FCF | 11.31 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 46.1% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 3.06 | ||
| Cash Conversion | 44.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.41 |
F-Score5
WACC9.01%
ROIC/WACC1.29
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)-21.86%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-13.53%
EPS Next Y-21.76%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.99%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%0.49%
Revenue Next Year-4.86%
Revenue Next 2Y1.05%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
EBIT growth 1Y1.99%
EBIT growth 3Y38.42%
EBIT growth 5Y19.52%
EBIT Next Year90.31%
EBIT Next 3Y36.62%
EBIT Next 5YN/A
FCF growth 1Y61.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.92%
OCF growth 3Y41.5%
OCF growth 5Y22.35%