AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AFN - CA0011811068 - Common Stock
30.6 CAD
+0.63 (+2.1%)
Overall AFN gets a fundamental rating of 5 out of 10. We evaluated AFN against 23 industry peers in the Machinery industry. AFN has a medium profitability rating, but doesn't score so well on its financial health evaluation. AFN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year AFN was profitable.
- AFN had a negative operating cash flow in the past year.
- In multiple years AFN reported negative net income over the last 5 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 -0.53%, AFN is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- With a decent Return On Equity value of -2.89%, AFN is doing good in the industry, outperforming 60.87% of the companies in the same industry.
- AFN's Return On Invested Capital of 9.24% is amongst the best of the industry. AFN outperforms 86.96% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFN 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
- With an excellent Operating Margin value of 11.10%, AFN belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- AFN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 28.91%, AFN is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
- In the last couple of years the Gross Margin of AFN 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AFN is still 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
- Based on the Altman-Z score of 1.32, we must say that AFN is in the distress zone and has some risk of bankruptcy.
- AFN has a Altman-Z score (1.32) which is in line with its industry peers.
- AFN has a Debt/Equity ratio of 3.04. This is a high value indicating a heavy dependency on external financing.
- AFN's Debt to Equity ratio of 3.04 is on the low side compared to the rest of the industry. AFN is outperformed by 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC1.02
WACC9.02%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that AFN should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.69, AFN is doing good in the industry, outperforming 65.22% of the companies in the same industry.
- A Quick Ratio of 1.16 indicates that AFN should not have too much problems paying its short term obligations.
- AFN has a Quick ratio of 1.16. This is in the better half of the industry: AFN outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- AFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.72%.
- Measured over the past years, AFN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.02% on average per year.
- AFN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.22%.
- The Revenue has been growing slightly by 7.12% on average over the past years.
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 will show a decrease in Earnings Per Share. The EPS will decrease by -4.39% on average per year.
- AFN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.54% yearly.
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
- 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
- The Price/Earnings ratio is 11.01, which indicates a very decent valuation of AFN.
- Based on the Price/Earnings ratio, AFN is valued cheaper than 91.30% of the companies in the same industry.
- AFN is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- AFN is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
- Based on the Price/Forward Earnings ratio, AFN is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
- AFN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.01 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AFN is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
- The decent profitability rating of AFN may justify a higher PE ratio.
- AFN's earnings are expected to decrease with -4.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-14.69%
EPS Next 3Y-4.39%
5. Dividend
5.1 Amount
- AFN has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.91, AFN pays a bit more dividend than its industry peers.
- AFN's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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.
- AFN's earnings and Dividend Rate are 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 INC / AFN.CA FAQ
What is the fundamental rating for AFN stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFN.CA.
What is the valuation status of AG GROWTH INTERNATIONAL INC (AFN.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to AG GROWTH INTERNATIONAL INC (AFN.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for AG GROWTH INTERNATIONAL INC?
AG GROWTH INTERNATIONAL INC (AFN.CA) has a profitability rating of 6 / 10.
What is the valuation of AG GROWTH INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AG GROWTH INTERNATIONAL INC (AFN.CA) is 11.01 and the Price/Book (PB) ratio is 1.78.
How sustainable is the dividend of AG GROWTH INTERNATIONAL INC (AFN.CA) stock?
The dividend rating of AG GROWTH INTERNATIONAL INC (AFN.CA) is 3 / 10 and the dividend payout ratio is -121.49%.