AGROFRESH SOLUTIONS INC (AGFS)
US00856G1094 - Common Stock
Overall AGFS gets a fundamental rating of 3 out of 10. We evaluated AGFS against 84 industry peers in the Chemicals industry. While AGFS seems to be doing ok healthwise, there are quite some concerns on its profitability. AGFS does not seem to be growing, but still is valued expensively.
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.
AGFS had negative earnings in each of the past 5 years.
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.
The Return On Invested Capital of AGFS (0.78%) is worse than 77.17% of its industry peers.
AGFS had an Average Return On Invested Capital over the past 3 years of 9.75%. This is above the industry average of 7.50%.
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
The Operating Margin of AGFS (3.85%) is worse than 75.00% of its industry peers.
In the last couple of years the Operating Margin of AGFS has declined.
AGFS's Gross Margin of 67.00% is amongst the best of the industry. AGFS outperforms 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.
The number of shares outstanding for AGFS has been increased compared to 5 years ago.
AGFS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that AGFS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.12, AGFS is not doing good in the industry: 80.43% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 21.23, AGFS perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that AGFS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, AGFS perfoms like the industry average, outperforming 42.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 21.23 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.1
WACC8.16%
2.3 Liquidity
AGFS has a Current Ratio of 2.39. This indicates that AGFS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AGFS (2.39) is better than 61.96% of its industry peers.
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.
With a decent Quick ratio value of 2.01, AGFS is doing good in the industry, outperforming 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The earnings per share for AGFS have decreased strongly by -134.69% in the last year.
AGFS shows a decrease in Revenue. In the last year, the revenue decreased by -2.44%.
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 growth Q2Q-680%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y-0.25%
Revenue growth 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.
AGFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AGFS. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AGFS. No positive earnings are expected for the next year.
| 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 68.48% of the companies in the same industry.
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
With a Yearly Dividend Yield of 1.26%, AGFS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.31, AGFS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, AGFS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
AGFS is new to the dividend game and has less than 3 years of track record.
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%
AGROFRESH SOLUTIONS INC
NASDAQ:AGFS (3/30/2023, 7:00:00 PM)
After market: 3 0 (0%)3
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap161.15M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y43.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y