AGROFRESH SOLUTIONS INC (AGFS) Stock Fundamental Analysis
NASDAQ:AGFS - Nasdaq - US00856G1094 - Common Stock - Currency: USD
Overall AGFS gets a fundamental rating of 3 out of 10. We evaluated AGFS against 85 industry peers in the Chemicals industry. AGFS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AGFS has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AGFS has reported negative net income.
AGFS had a positive operating cash flow in the past year.
In the past 5 years AGFS always reported negative net income.
In the past 5 years AGFS always reported a positive cash flow from operatings.
1.2 Ratios
The profitability ratios for AGFS are negative, so there is not much use analyzing them.
Looking at the Return On Invested Capital, with a value of 0.78%, AGFS is doing worse than 77.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGFS is above the industry average of 7.00%.
The 3 year average ROIC (9.75%) for AGFS is well above the current ROIC(0.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 0.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.75%
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 3.85%, AGFS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
AGFS's Operating Margin has declined in the last couple of years.
The Gross Margin of AGFS (67.00%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of AGFS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% |
OM growth 3YN/A
OM growth 5Y-31.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.03%
GM growth 5Y-3.51%
2. Health
2.1 Basic Checks
AGFS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AGFS has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, AGFS has a worse debt to assets ratio.
2.2 Solvency
AGFS has an Altman-Z score of 0.12. This is a bad value and indicates that AGFS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AGFS (0.12) is worse than 80.43% of its industry peers.
AGFS has a debt to FCF ratio of 21.23. This is a negative value and a sign of low solvency as AGFS would need 21.23 years to pay back of all of its debts.
The Debt to FCF ratio of AGFS (21.23) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.75 indicates that AGFS is somewhat dependend on debt financing.
AGFS has a Debt to Equity ratio of 0.75. This is comparable to the rest of the industry: AGFS outperforms 42.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 21.23 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.1
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.39 indicates that AGFS has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.39, AGFS is doing good in the industry, outperforming 61.96% of the companies in the same industry.
AGFS has a Quick Ratio of 2.01. This indicates that AGFS is financially healthy and has no problem in meeting its short term obligations.
AGFS's Quick ratio of 2.01 is fine compared to the rest of the industry. AGFS outperforms 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
AGFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -134.69%.
The Revenue has decreased by -2.44% in the past year.
AGFS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.25% yearly.
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-680%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y-0.25%
Sales Q2Q%-13.17%
3.2 Future
The Earnings Per Share is expected to grow by 14.46% on average over the next years. This is quite good.
Based on estimates for the next years, AGFS will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y43.23%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
EPS Next 5Y14.46%
Revenue Next Year7.81%
Revenue Next 2Y13.33%
Revenue Next 3Y11.67%
Revenue Next 5Y10.18%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AGFS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year AGFS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGFS is valued a bit cheaper than the industry average as 68.48% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGFS indicates a somewhat cheap valuation: AGFS is cheaper than 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AGFS's earnings are expected to grow with 18.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.82%
EPS Next 3Y18.69%
5. Dividend
5.1 Amount
AGFS has a Yearly Dividend Yield of 1.26%.
AGFS's Dividend Yield is comparable with the industry average which is at 3.80.
With a Dividend Yield of 1.26, AGFS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
AGFS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AGFS are negative and hence is the payout ratio. AGFS will probably not be able to sustain this dividend level.
DP-17.77%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
3
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners70.48%
Inst Owner ChangeN/A
Ins Owners13.49%
Ins Owner Change0%
Market Cap161.15M
Analysts77.78
Price Target3.06 (2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP-17.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-295.53%
Min EPS beat(2)-375.15%
Max EPS beat(2)-215.9%
EPS beat(4)1
Avg EPS beat(4)-147.1%
Min EPS beat(4)-375.15%
Max EPS beat(4)19.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-10.68%
Min Revenue beat(2)-12.85%
Max Revenue beat(2)-8.5%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-12.85%
Max Revenue beat(4)13.56%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1 | ||
| P/FCF | 13.28 | ||
| P/OCF | 9.96 | ||
| P/B | 0.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7 |
EPS(TTM)-1.15
EYN/A
EPS(NY)-0.65
Fwd EYN/A
FCF(TTM)0.23
FCFY7.53%
OCF(TTM)0.3
OCFY10.04%
SpS3.01
BVpS6.25
TBVpS-3.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | 0.78% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 6.66% | ||
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.75%
ROIC(5y)N/A
ROICexc(3y)1.21%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-33.84%
ROICexc growth 3YN/A
ROICexc growth 5Y-26.31%
OM growth 3YN/A
OM growth 5Y-31.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.03%
GM growth 5Y-3.51%
F-Score3
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 21.23 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 8.84% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 0.12 |
F-Score3
WACC8.16%
ROIC/WACC0.1
Cap/Depr(3y)7.58%
Cap/Depr(5y)7.3%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-680%
EPS Next Y43.23%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
EPS Next 5Y14.46%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y-0.25%
Sales Q2Q%-13.17%
Revenue Next Year7.81%
Revenue Next 2Y13.33%
Revenue Next 3Y11.67%
Revenue Next 5Y10.18%
EBIT growth 1Y-52.16%
EBIT growth 3YN/A
EBIT growth 5Y-31.43%
EBIT Next Year378.79%
EBIT Next 3Y93.66%
EBIT Next 5Y57%
FCF growth 1Y-74.7%
FCF growth 3Y-8.57%
FCF growth 5Y-15.19%
OCF growth 1Y-68.9%
OCF growth 3Y-6.93%
OCF growth 5Y-14.5%