AGROFRESH SOLUTIONS INC (AGFS) Stock Fundamental Analysis
NASDAQ:AGFS - Nasdaq - US00856G1094 - Common Stock - Currency: USD
AGFS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. The financial health of AGFS is average, but 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.
AGFS had a positive operating cash flow in the past year.
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.
With a Return On Invested Capital value of 0.78%, AGFS is not doing good in the industry: 77.17% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for AGFS is above the industry average of 6.71%.
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
The Operating Margin of AGFS (3.85%) is worse than 75.00% of its industry peers.
AGFS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.00%, AGFS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
AGFS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AGFS has been increased compared to 1 year ago.
AGFS has a worse debt/assets ratio than last year.
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.
Looking at the Current ratio, with a value of 2.39, AGFS is in the better half of the industry, outperforming 61.96% of the companies in the same industry.
A Quick Ratio of 2.01 indicates that AGFS has no problem at all paying its short term obligations.
AGFS's Quick ratio of 2.01 is fine compared to the rest of the industry. AGFS outperforms 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
AGFS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.46% yearly.
Based on estimates for the next years, AGFS will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AGFS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGFS indicates a somewhat cheap valuation: AGFS is cheaper than 68.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AGFS is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
AGFS's earnings are expected to grow with 18.69% in the coming years. This may justify a more expensive valuation.
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%. Purely for dividend investing, there may be better candidates out there.
AGFS's Dividend Yield is comparable with the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.27, AGFS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
AGFS is new to the dividend game and has less than 3 years of track record.
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%
3
+0.01 (+0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners70.48%
Inst Owner ChangeN/A
Ins Owners13.49%
Ins Owner Change0%
Market Cap161.15M
Analysts77.78
Price Target3.06 (2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.3
Dividend Growth(5Y)N/A
DP-17.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-295.53%
Min EPS beat(2)-375.15%
Max EPS beat(2)-215.9%
EPS beat(4)1
Avg EPS beat(4)-147.1%
Min EPS beat(4)-375.15%
Max EPS beat(4)19.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-10.68%
Min Revenue beat(2)-12.85%
Max Revenue beat(2)-8.5%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-12.85%
Max Revenue beat(4)13.56%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1 | ||
| P/FCF | 13.28 | ||
| P/OCF | 9.96 | ||
| P/B | 0.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7 |
EPS(TTM)-1.15
EYN/A
EPS(NY)-0.65
Fwd EYN/A
FCF(TTM)0.23
FCFY7.53%
OCF(TTM)0.3
OCFY10.04%
SpS3.01
BVpS6.25
TBVpS-3.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | 0.78% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 6.66% | ||
| OM | 3.85% | ||
| PM (TTM) | N/A | ||
| GM | 67% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)9.75%
ROIC(5y)N/A
ROICexc(3y)1.21%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-33.84%
ROICexc growth 3YN/A
ROICexc growth 5Y-26.31%
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%
F-Score3
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 21.23 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 8.84% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 0.12 |
F-Score3
WACC8.16%
ROIC/WACC0.1
Cap/Depr(3y)7.58%
Cap/Depr(5y)7.3%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-134.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-680%
EPS Next Y43.23%
EPS Next 2Y25.82%
EPS Next 3Y18.69%
EPS Next 5Y14.46%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.63%
Revenue growth 5Y-0.25%
Sales Q2Q%-13.17%
Revenue Next Year7.81%
Revenue Next 2Y13.33%
Revenue Next 3Y11.67%
Revenue Next 5Y10.18%
EBIT growth 1Y-52.16%
EBIT growth 3YN/A
EBIT growth 5Y-31.43%
EBIT Next Year378.79%
EBIT Next 3Y93.66%
EBIT Next 5Y57%
FCF growth 1Y-74.7%
FCF growth 3Y-8.57%
FCF growth 5Y-15.19%
OCF growth 1Y-68.9%
OCF growth 3Y-6.93%
OCF growth 5Y-14.5%