AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to AFN. AFN was compared to 20 industry peers in the Machinery industry. While AFN has a great profitability rating, there are quite some concerns on its financial health. AFN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year AFN was profitable.
AFN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AFN reported negative net income in multiple years.
In the past 5 years AFN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.46%, AFN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
AFN has a Return On Equity of 7.43%. This is amongst the best in the industry. AFN outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.86%, AFN belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFN is in line with the industry average of 9.56%.
The 3 year average ROIC (8.69%) for AFN is below the current ROIC(10.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 7.43% | ||
| ROIC | 10.86% |
ROA(3y)0.58%
ROA(5y)-0.28%
ROE(3y)2.18%
ROE(5y)-2.59%
ROIC(3y)8.69%
ROIC(5y)6.2%
1.3 Margins
The Profit Margin of AFN (1.71%) is better than 71.43% of its industry peers.
AFN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.36%, AFN belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of AFN has remained more or less at the same level.
AFN has a Gross Margin of 32.05%. This is amongst the best in the industry. AFN outperforms 80.95% of its industry peers.
AFN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.36% | ||
| PM (TTM) | 1.71% | ||
| GM | 32.05% |
OM growth 3Y370.76%
OM growth 5Y0.79%
PM growth 3YN/A
PM growth 5Y9.59%
GM growth 3Y14.71%
GM growth 5Y1.74%
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.
The number of shares outstanding for AFN has been increased compared to 1 year ago.
The number of shares outstanding for AFN has been increased compared to 5 years ago.
AFN has a better debt/assets ratio than last year.
2.2 Solvency
AFN has an Altman-Z score of 1.44. 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 1.44. This is comparable to the rest of the industry: AFN outperforms 42.86% of its industry peers.
AFN has a debt to FCF ratio of 8.04. This is a slightly negative value and a sign of low solvency as AFN would need 8.04 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.04, AFN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 2.48 is on the high side and indicates that AFN has dependencies on debt financing.
AFN has a Debt to Equity ratio of 2.48. This is in the lower half of the industry: AFN underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.13
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.41 indicates that AFN should not have too much problems paying its short term obligations.
AFN has a worse Current ratio (1.41) than 66.67% of its industry peers.
A Quick Ratio of 0.97 indicates that AFN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, AFN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
AFN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.17%.
The Earnings Per Share has been growing by 11.91% on average over the past years. This is quite good.
Looking at the last year, AFN shows a decrease in Revenue. The Revenue has decreased by -7.79% in the last year.
Measured over the past years, AFN shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)-5.17%
EPS 3Y23.43%
EPS 5Y11.91%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-7.79%
Revenue growth 3Y15.38%
Revenue growth 5Y10.38%
Sales Q2Q%-12.9%
3.2 Future
The Earnings Per Share is expected to decrease by -6.02% on average over the next years.
AFN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y-22.33%
EPS Next 2Y-15.89%
EPS Next 3Y-6.02%
EPS Next 5YN/A
Revenue Next Year-9.67%
Revenue Next 2Y-4.62%
Revenue Next 3Y-0.99%
Revenue Next 5Y5.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.59 indicates a rather cheap valuation of AFN.
Based on the Price/Earnings ratio, AFN is valued cheaper than 95.24% of the companies in the same industry.
AFN is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.81 indicates a reasonable valuation of AFN.
95.24% of the companies in the same industry are more expensive than AFN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. AFN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
95.24% of the companies in the same industry are more expensive than AFN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.22 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
AFN has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AFN's earnings are expected to decrease with -6.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-15.89%
EPS Next 3Y-6.02%
5. Dividend
5.1 Amount
AFN has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of AFN has falen by -32.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AFN's Dividend Yield is a higher than the industry average which is at 1.85.
AFN's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of AFN decreases each year by -23.35%.
AFN has been paying a dividend for at least 10 years, so it has a reliable track record.
AFN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-23.35%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
47.72% of the earnings are spent on dividend by AFN. This is a bit on the high side, but may be sustainable.
The Dividend Rate of AFN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP47.72%
EPS Next 2Y-15.89%
EPS Next 3Y-6.02%
TSX:AFN (3/7/2025, 7:00:00 PM)
36.2
+1 (+2.84%)
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 Cap690.33M
Analysts75
Price Target56.61 (56.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.6
Dividend Growth(5Y)-23.35%
DP47.72%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.8%
Min EPS beat(2)-29.25%
Max EPS beat(2)-18.34%
EPS beat(4)1
Avg EPS beat(4)-13.43%
Min EPS beat(4)-45.74%
Max EPS beat(4)39.6%
EPS beat(8)3
Avg EPS beat(8)4.07%
EPS beat(12)6
Avg EPS beat(12)7.72%
EPS beat(16)10
Avg EPS beat(16)436.32%
Revenue beat(2)0
Avg Revenue beat(2)-12.66%
Min Revenue beat(2)-13.37%
Max Revenue beat(2)-11.94%
Revenue beat(4)0
Avg Revenue beat(4)-11.81%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-9.15%
Revenue beat(8)2
Avg Revenue beat(8)-6.14%
Revenue beat(12)5
Avg Revenue beat(12)-2.59%
Revenue beat(16)5
Avg Revenue beat(16)-2.74%
PT rev (1m)-6.72%
PT rev (3m)-22.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.57%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-15.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.92%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.49 | ||
| P/FCF | 6.22 | ||
| P/OCF | 4.42 | ||
| P/B | 2.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.57 |
EPS(TTM)4.77
EY13.18%
EPS(NY)4.11
Fwd EY11.36%
FCF(TTM)5.82
FCFY16.09%
OCF(TTM)8.18
OCFY22.61%
SpS73.56
BVpS16.88
TBVpS-11.31
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 7.43% | ||
| ROCE | 13.57% | ||
| ROIC | 10.86% | ||
| ROICexc | 11.8% | ||
| ROICexgc | 23.49% | ||
| OM | 11.36% | ||
| PM (TTM) | 1.71% | ||
| GM | 32.05% | ||
| FCFM | 7.92% |
ROA(3y)0.58%
ROA(5y)-0.28%
ROE(3y)2.18%
ROE(5y)-2.59%
ROIC(3y)8.69%
ROIC(5y)6.2%
ROICexc(3y)9.29%
ROICexc(5y)6.61%
ROICexgc(3y)19.79%
ROICexgc(5y)14.08%
ROCE(3y)10.85%
ROCE(5y)7.75%
ROICexcg growth 3Y457.17%
ROICexcg growth 5Y11.88%
ROICexc growth 3Y458.14%
ROICexc growth 5Y10.2%
OM growth 3Y370.76%
OM growth 5Y0.79%
PM growth 3YN/A
PM growth 5Y9.59%
GM growth 3Y14.71%
GM growth 5Y1.74%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 8.04 | ||
| Debt/EBITDA | 3.52 | ||
| Cap/Depr | 67.02% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 68.88% | ||
| Profit Quality | 463.98% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.44 |
F-Score6
WACC9.59%
ROIC/WACC1.13
Cap/Depr(3y)77.42%
Cap/Depr(5y)86.62%
Cap/Sales(3y)3.7%
Cap/Sales(5y)4.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.17%
EPS 3Y23.43%
EPS 5Y11.91%
EPS Q2Q%-22.22%
EPS Next Y-22.33%
EPS Next 2Y-15.89%
EPS Next 3Y-6.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.79%
Revenue growth 3Y15.38%
Revenue growth 5Y10.38%
Sales Q2Q%-12.9%
Revenue Next Year-9.67%
Revenue Next 2Y-4.62%
Revenue Next 3Y-0.99%
Revenue Next 5Y5.28%
EBIT growth 1Y-0.81%
EBIT growth 3Y443.15%
EBIT growth 5Y11.26%
EBIT Next Year82.14%
EBIT Next 3Y28.92%
EBIT Next 5YN/A
FCF growth 1Y2058.97%
FCF growth 3Y12.87%
FCF growth 5YN/A
OCF growth 1Y286.54%
OCF growth 3Y12.51%
OCF growth 5Y20.72%