AGROFRESH SOLUTIONS INC (AGFS)
US00856G1094 - Common Stock
We assign a fundamental rating of 3 out of 10 to AGFS. AGFS was compared to 84 industry peers in the Chemicals industry. While AGFS seems to be doing ok healthwise, there are quite some concerns on its profitability. AGFS is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AGFS has reported negative net income.
In the past year AGFS had a positive cash flow from operations.
In the past 5 years AGFS always reported negative net income.
In the past 5 years AGFS always reported a positive cash flow from operatings.
1.2 Ratios
The profitability ratios for AGFS are negative, so there is not much use analyzing them.
The Return On Invested Capital of AGFS (0.78%) is worse than 77.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGFS is above the industry average of 6.50%.
The last Return On Invested Capital (0.78%) for AGFS is well below the 3 year average (9.75%), which needs to be investigated, but indicates that AGFS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 0.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.75%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 3.85%, AGFS is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AGFS has declined.
AGFS has a better Gross Margin (67.00%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of AGFS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% |
OM growth 3YN/A
OM growth 5Y-31.26%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.03%
GM growth 5Y-3.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AGFS is still creating some value.
AGFS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AGFS has been increased compared to 5 years ago.
Compared to 1 year ago, AGFS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that AGFS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AGFS (0.12) is worse than 80.43% of its industry peers.
The Debt to FCF ratio of AGFS is 21.23, which is on the high side as it means it would take AGFS, 21.23 years of fcf income to pay off all of its debts.
AGFS has a Debt to FCF ratio (21.23) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.75 indicates that AGFS is somewhat dependend on debt financing.
The Debt to Equity ratio of AGFS (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 21.23 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.1
WACC8.16%
2.3 Liquidity
AGFS has a Current Ratio of 2.39. This indicates that AGFS is financially healthy and has no problem in meeting its short term obligations.
AGFS has a Current ratio of 2.39. This is in the better half of the industry: AGFS outperforms 61.96% of its industry peers.
A Quick Ratio of 2.01 indicates that AGFS has no problem at all paying its short term obligations.
The Quick ratio of AGFS (2.01) is better than 77.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
AGFS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -134.69%.
The Revenue has decreased by -2.44% in the past year.
Measured over the past years, AGFS shows a decrease in Revenue. The Revenue has been decreasing by -0.25% on average per year.
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-680%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y-0.25%
Sales Q2Q%-13.17%
3.2 Future
The Earnings Per Share is expected to grow by 14.46% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.18% on average over the next years. This is quite good.
EPS Next Y43.23%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
EPS Next 5Y14.46%
Revenue Next Year7.81%
Revenue Next 2Y13.33%
Revenue Next 3Y11.67%
Revenue Next 5Y10.18%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AGFS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year AGFS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGFS is valued a bit cheaper than 68.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AGFS is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AGFS's earnings are expected to grow with 18.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.82%
EPS Next 3Y18.69%
5. Dividend
5.1 Amount
AGFS has a Yearly Dividend Yield of 1.26%.
Compared to an average industry Dividend Yield of 2.95, AGFS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, AGFS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
AGFS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of AGFS are negative and hence is the payout ratio. AGFS will probably not be able to sustain this dividend level.
DP-17.77%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
AGROFRESH SOLUTIONS INC
NASDAQ:AGFS (3/30/2023, 8:00:00 PM)
After market: 3 0 (0%)3
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap161.15M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y43.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y