AG GROWTH INTERNATIONAL INC (AFN.CA) Stock Fundamental Analysis
Canada - TSX:AFN - CA0011811068 - Common Stock
35.33 CAD
-0.61 (-1.7%)
AFN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Machinery industry. While AFN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AFN.
1. Profitability
1.1 Basic Checks
In the past year AFN was profitable.
In the past year AFN had a positive cash flow from operations.
In multiple years AFN reported negative net income over the last 5 years.
AFN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AFN (-0.42%) is better than 83.33% of its industry peers.
AFN's Return On Equity of -2.39% is fine compared to the rest of the industry. AFN outperforms 70.83% of its industry peers.
AFN has a Return On Invested Capital of 9.43%. This is amongst the best in the industry. AFN outperforms 95.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFN is above the industry average of 7.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -2.39% | ||
| ROIC | 9.43% |
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 10.96%, AFN belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
AFN's Operating Margin has improved in the last couple of years.
AFN's Gross Margin of 29.74% is fine compared to the rest of the industry. AFN outperforms 75.00% of its industry peers.
AFN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 29.74% |
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.
AFN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFN has more shares outstanding
Compared to 1 year ago, AFN has an improved debt to assets ratio.
2.2 Solvency
AFN has an Altman-Z score of 1.36. This is a bad value and indicates that AFN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.36, AFN is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
The Debt to FCF ratio of AFN is 2850.57, which is on the high side as it means it would take AFN, 2850.57 years of fcf income to pay off all of its debts.
AFN has a Debt to FCF ratio of 2850.57. This is in the better half of the industry: AFN outperforms 66.67% of its industry peers.
AFN has a Debt/Equity ratio of 3.26. This is a high value indicating a heavy dependency on external financing.
AFN has a Debt to Equity ratio of 3.26. This is in the lower half of the industry: AFN underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 2850.57 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.02
WACC9.24%
2.3 Liquidity
AFN has a Current Ratio of 1.64. This is a normal value and indicates that AFN is financially healthy and should not expect problems in meeting its short term obligations.
AFN's Current ratio of 1.64 is in line compared to the rest of the industry. AFN outperforms 58.33% of its industry peers.
A Quick Ratio of 1.08 indicates that AFN should not have too much problems paying its short term obligations.
AFN's Quick ratio of 1.08 is fine compared to the rest of the industry. AFN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
AFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.78%.
AFN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.02% yearly.
The Revenue has decreased by -5.64% in the past year.
The Revenue has been growing slightly by 7.12% on average over the past years.
EPS 1Y (TTM)-46.78%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-81.69%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-0.92%
3.2 Future
The Earnings Per Share is expected to grow by 7.73% on average over the next years.
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-39.27%
EPS Next 2Y0.64%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year-1.69%
Revenue Next 2Y2.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.94, AFN is valued correctly.
100.00% of the companies in the same industry are more expensive than AFN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AFN to the average of the S&P500 Index (27.34), we can say AFN is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.68, the valuation of AFN can be described as very cheap.
Based on the Price/Forward Earnings ratio, AFN is valued cheaper than 95.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AFN to the average of the S&P500 Index (22.86), we can say AFN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than AFN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AFN is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1988.63 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
AFN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y0.64%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, AFN has a reasonable but not impressive dividend return.
AFN's Dividend Yield is a higher than the industry average which is at 1.96.
AFN's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
AFN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-164.52%
EPS Next 2Y0.64%
EPS Next 3Y7.73%
TSX:AFN (10/10/2025, 7:00:00 PM)
35.33
-0.61 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners22.08%
Inst Owner ChangeN/A
Ins Owners5.83%
Ins Owner ChangeN/A
Market Cap664.20M
Analysts80
Price Target54.44 (54.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend0.6
Dividend Growth(5Y)-24.17%
DP-164.52%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.37%
Min EPS beat(2)-63.22%
Max EPS beat(2)2.49%
EPS beat(4)2
Avg EPS beat(4)-18.43%
Min EPS beat(4)-63.22%
Max EPS beat(4)16.28%
EPS beat(8)3
Avg EPS beat(8)-12.79%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)9
Avg EPS beat(16)4.13%
Revenue beat(2)2
Avg Revenue beat(2)9.19%
Min Revenue beat(2)6.21%
Max Revenue beat(2)12.16%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)12.16%
Revenue beat(8)2
Avg Revenue beat(8)-4.57%
Revenue beat(12)5
Avg Revenue beat(12)-2.66%
Revenue beat(16)7
Avg Revenue beat(16)-1.36%
PT rev (1m)0%
PT rev (3m)9.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.3%
EPS NY rev (1m)-1.95%
EPS NY rev (3m)-22.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.94 | ||
| Fwd PE | 7.68 | ||
| P/S | 0.48 | ||
| P/FCF | 1988.63 | ||
| P/OCF | 21.61 | ||
| P/B | 2.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.22 |
EPS(TTM)2.73
EY7.73%
EPS(NY)4.6
Fwd EY13.02%
FCF(TTM)0.02
FCFY0.05%
OCF(TTM)1.63
OCFY4.63%
SpS73.07
BVpS15.37
TBVpS-12.73
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.42% | ||
| ROE | -2.39% | ||
| ROCE | 11.78% | ||
| ROIC | 9.43% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 17.16% | ||
| OM | 10.96% | ||
| PM (TTM) | N/A | ||
| GM | 29.74% | ||
| FCFM | 0.02% |
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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.26 | ||
| Debt/FCF | 2850.57 | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 45.59% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 14.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.36 |
F-Score3
WACC9.24%
ROIC/WACC1.02
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)-46.78%
EPS 3Y12.72%
EPS 5Y16.02%
EPS Q2Q%-81.69%
EPS Next Y-39.27%
EPS Next 2Y0.64%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y5.43%
Revenue growth 5Y7.12%
Sales Q2Q%-0.92%
Revenue Next Year-1.69%
Revenue Next 2Y2.19%
Revenue Next 3Y10.83%
Revenue Next 5Y8.54%
EBIT growth 1Y-14.76%
EBIT growth 3Y38.42%
EBIT growth 5Y19.52%
EBIT Next Year90.52%
EBIT Next 3Y33.83%
EBIT Next 5YN/A
FCF growth 1Y-99.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.15%
OCF growth 3Y41.5%
OCF growth 5Y22.35%