AG GROWTH INTERNATIONAL (AFN-DB-H.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AFN-DB-H - CA001181AM88
100.06 CAD
-0.67 (-0.67%)
Overall AFN-DB-H gets a fundamental rating of 4 out of 10. We evaluated AFN-DB-H against 23 industry peers in the Machinery industry. AFN-DB-H has an average financial health and profitability rating. AFN-DB-H is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AFN-DB-H had positive earnings in the past year.
- AFN-DB-H had a negative operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: AFN-DB-H reported negative net income in multiple years.
- Each year in the past 5 years AFN-DB-H had a positive operating cash flow.
1.2 Ratios
- AFN-DB-H has a Return On Assets of -0.53%. This is in the better half of the industry: AFN-DB-H outperforms 65.22% of its industry peers.
- The Return On Equity of AFN-DB-H (-2.89%) is comparable to the rest of the industry.
- With an excellent Return On Invested Capital value of 9.24%, AFN-DB-H belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AFN-DB-H is above the industry average of 6.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.53% | ||
| ROE | -2.89% | ||
| ROIC | 9.24% |
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
- Looking at the Operating Margin, with a value of 11.10%, AFN-DB-H belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- AFN-DB-H's Operating Margin has improved in the last couple of years.
- AFN-DB-H's Gross Margin of 28.91% is fine compared to the rest of the industry. AFN-DB-H outperforms 60.87% of its industry peers.
- In the last couple of years the Gross Margin of AFN-DB-H has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.1% | ||
| PM (TTM) | N/A | ||
| GM | 28.91% |
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-DB-H is creating some value.
- The number of shares outstanding for AFN-DB-H has been reduced compared to 1 year ago.
- Compared to 5 years ago, AFN-DB-H has more shares outstanding
- The debt/assets ratio for AFN-DB-H has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.87 indicates that AFN-DB-H is not a great score, but indicates only limited risk for bankruptcy at the moment.
- AFN-DB-H has a Altman-Z score (1.87) which is in line with its industry peers.
- AFN-DB-H has a Debt/Equity ratio of 3.04. This is a high value indicating a heavy dependency on external financing.
- AFN-DB-H's Debt to Equity ratio of 3.04 is on the low side compared to the rest of the industry. AFN-DB-H is outperformed by 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC1.02
WACC9.02%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that AFN-DB-H should not have too much problems paying its short term obligations.
- AFN-DB-H has a better Current ratio (1.69) than 60.87% of its industry peers.
- A Quick Ratio of 1.16 indicates that AFN-DB-H should not have too much problems paying its short term obligations.
- AFN-DB-H has a Quick ratio of 1.16. This is in the better half of the industry: AFN-DB-H outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- AFN-DB-H shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.72%.
- The Earnings Per Share has been growing by 16.02% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 0.22% in the past year.
- Measured over the past years, AFN-DB-H shows a small growth in Revenue. The Revenue has been growing by 7.12% on average per year.
EPS 1Y (TTM)-41.72%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%3.97%
Revenue 1Y (TTM)0.22%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%9.03%
3.2 Future
- Based on estimates for the next years, AFN-DB-H will show a decrease in Earnings Per Share. The EPS will decrease by -4.39% on average per year.
- Based on estimates for the next years, AFN-DB-H will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y-41.94%
EPS Next 2Y-14.69%
EPS Next 3Y-4.39%
EPS Next 5YN/A
Revenue Next Year-1.69%
Revenue Next 2Y1.64%
Revenue Next 3Y2.7%
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
- The Price/Earnings ratio is 35.99, which means the current valuation is very expensive for AFN-DB-H.
- AFN-DB-H's Price/Earnings ratio is a bit cheaper when compared to the industry. AFN-DB-H is cheaper than 73.91% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. AFN-DB-H is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 30.28, AFN-DB-H can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, AFN-DB-H is valued a bit cheaper than 65.22% of the companies in the same industry.
- AFN-DB-H's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 30.28 |
4.2 Price Multiples
- 73.91% of the companies in the same industry are more expensive than AFN-DB-H, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.66 |
4.3 Compensation for Growth
- The decent profitability rating of AFN-DB-H may justify a higher PE ratio.
- A cheap valuation may be justified as AFN-DB-H's earnings are expected to decrease with -4.39% in the coming years.
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y-14.69%
EPS Next 3Y-4.39%
5. Dividend
5.1 Amount
- AFN-DB-H has a Yearly Dividend Yield of 1.92%.
- AFN-DB-H's Dividend Yield is a higher than the industry average which is at 0.91.
- Compared to an average S&P500 Dividend Yield of 1.82, AFN-DB-H has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
- The dividend of AFN-DB-H decreases each year by -24.17%.
- AFN-DB-H does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-24.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of AFN-DB-H are negative and hence is the payout ratio. AFN-DB-H will probably not be able to sustain this dividend level.
- The Dividend Rate of AFN-DB-H has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-121.49%
EPS Next 2Y-14.69%
EPS Next 3Y-4.39%
AG GROWTH INTERNATIONAL / AFN-DB-H.CA FAQ
What is the fundamental rating for AFN-DB-H stock?
ChartMill assigns a fundamental rating of 4 / 10 to AFN-DB-H.CA.
Can you provide the valuation status for AG GROWTH INTERNATIONAL?
ChartMill assigns a valuation rating of 2 / 10 to AG GROWTH INTERNATIONAL (AFN-DB-H.CA). This can be considered as Overvalued.
How profitable is AG GROWTH INTERNATIONAL (AFN-DB-H.CA) stock?
AG GROWTH INTERNATIONAL (AFN-DB-H.CA) has a profitability rating of 6 / 10.
Can you provide the financial health for AFN-DB-H stock?
The financial health rating of AG GROWTH INTERNATIONAL (AFN-DB-H.CA) is 4 / 10.
Can you provide the dividend sustainability for AFN-DB-H stock?
The dividend rating of AG GROWTH INTERNATIONAL (AFN-DB-H.CA) is 2 / 10 and the dividend payout ratio is -121.49%.