AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
TSX:AFN - Toronto Stock Exchange - CA0011811068 - Common Stock - Currency: CAD
AFN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 19 industry peers in the Machinery industry. AFN has an average financial health and profitability rating. AFN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
AFN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFN has a Return On Assets (-2.25%) which is comparable to the rest of the industry.
With a Return On Equity value of -13.49%, AFN perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
AFN has a better Return On Invested Capital (10.08%) than 89.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFN is above the industry average of 8.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -13.49% | ||
| ROIC | 10.08% |
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 11.84% is amongst the best of the industry. AFN outperforms 94.74% of its industry peers.
AFN's Operating Margin has improved in the last couple of years.
AFN has a better Gross Margin (30.98%) than 73.68% of its industry peers.
In the last couple of years the Gross Margin of AFN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 30.98% |
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
The number of shares outstanding for AFN has been increased compared to 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 1.38. This is a bad value and indicates that AFN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, AFN is in line with its industry, outperforming 42.11% of the companies in the same industry.
AFN has a debt to FCF ratio of 23.52. This is a negative value and a sign of low solvency as AFN would need 23.52 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.52, AFN is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
AFN has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
AFN has a Debt to Equity ratio of 3.32. This is in the lower half of the industry: AFN underperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.09
WACC9.23%
2.3 Liquidity
AFN has a Current Ratio of 1.61. This is a normal value and indicates that AFN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.61, AFN perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that AFN should not have too much problems paying its short term obligations.
The Quick ratio of AFN (1.10) is better than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for AFN have decreased strongly by -34.62% in the last year.
AFN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.02% yearly.
AFN shows a decrease in Revenue. In the last year, the revenue decreased by -7.86%.
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)-34.62%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-8.85%
3.2 Future
Based on estimates for the next years, AFN will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
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-4.15%
Revenue Next 2Y1.05%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.98 indicates a reasonable valuation of AFN.
Compared to the rest of the industry, the Price/Earnings ratio of AFN indicates a rather cheap valuation: AFN is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AFN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.83, the valuation of AFN can be described as reasonable.
Based on the Price/Forward Earnings ratio, AFN is valued cheaper than 94.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AFN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaper than 100.00% of the companies in the same industry.
84.21% 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 | 19.34 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
The decent profitability rating of AFN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y3.24%
EPS Next 3Y6.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, AFN has a reasonable but not impressive dividend return.
AFN's Dividend Yield is rather good when compared to the industry average which is at 1.56. AFN pays more dividend than 84.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, AFN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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.
AFN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-24.17%
Div Incr Years0
Div Non Decr Years3
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-29.4%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
TSX:AFN (7/8/2025, 7:00:00 PM)
42.72
+0.29 (+0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners23.51%
Inst Owner ChangeN/A
Ins Owners5.88%
Ins Owner ChangeN/A
Market Cap797.16M
Analysts78.33
Price Target49.73 (16.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.6
Dividend Growth(5Y)-24.17%
DP-29.4%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.39%
Min EPS beat(2)2.49%
Max EPS beat(2)16.28%
EPS beat(4)2
Avg EPS beat(4)-7.2%
Min EPS beat(4)-29.25%
Max EPS beat(4)16.28%
EPS beat(8)4
Avg EPS beat(8)2.34%
EPS beat(12)7
Avg EPS beat(12)9.17%
EPS beat(16)10
Avg EPS beat(16)11.14%
Revenue beat(2)1
Avg Revenue beat(2)4.4%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)12.16%
Revenue beat(4)1
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)12.16%
Revenue beat(8)1
Avg Revenue beat(8)-6.57%
Revenue beat(12)5
Avg Revenue beat(12)-2.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.96%
PT rev (1m)2.36%
PT rev (3m)2.09%
EPS NQ rev (1m)-12.33%
EPS NQ rev (3m)-21.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.12%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 8.83 | ||
| P/S | 0.58 | ||
| P/FCF | 19.34 | ||
| P/OCF | 10.86 | ||
| P/B | 2.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)3.89
EY9.11%
EPS(NY)4.84
Fwd EY11.33%
FCF(TTM)2.21
FCFY5.17%
OCF(TTM)3.93
OCFY9.21%
SpS73.79
BVpS15.42
TBVpS-13.53
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.25% | ||
| ROE | -13.49% | ||
| ROCE | 12.59% | ||
| ROIC | 10.08% | ||
| ROICexc | 10.72% | ||
| ROICexgc | 19.25% | ||
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 30.98% | ||
| FCFM | 2.99% |
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-Score3
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 23.52 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 46.82% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 31.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.38 |
F-Score3
WACC9.23%
ROIC/WACC1.09
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)-34.62%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-166.67%
EPS Next Y-21.76%
EPS Next 2Y3.24%
EPS Next 3Y6.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-8.85%
Revenue Next Year-4.15%
Revenue Next 2Y1.05%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
EBIT growth 1Y-7.95%
EBIT growth 3Y38.42%
EBIT growth 5Y19.52%
EBIT Next Year89.18%
EBIT Next 3Y34.58%
EBIT Next 5YN/A
FCF growth 1Y-53.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.44%
OCF growth 3Y41.5%
OCF growth 5Y22.35%