Ag Growth International (AFN) AI Stock Analysis

• Market Cap: C$678.31M
• Dividend Yield: 1.66%
• Average Volume (3M): 56.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -5.64%
• EPS Growth: -121.91%
• Country: CA
• Employees: 3,679
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.26
• Shares Outstanding: 18,800,190
• 10 Day Avg. Volume: 59,727
• 30 Day Avg. Volume: 56,245
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$51.50
• Price Target Upside: 42.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 44 Neutral
• Price Target: C$40.00 ▲(10.86% Upside)

Ag Growth International's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on the score. Technical indicators suggest a bearish trend, further impacting the outlook. While the earnings call provided some positive insights, particularly in the Commercial segment, the overall financial and valuation concerns dominate the assessment.

Positive Factors

Strong Commercial Segment Performance

The robust growth in the Commercial segment indicates a strong market position and effective execution, particularly in international markets, which supports long-term revenue stability and profitability.

Order Book Stability

A stable and growing order book reflects sustained demand for AGI's products, ensuring future revenue streams and supporting strategic growth initiatives.

Debt Reduction Strategy

The focus on reducing debt through strategic financial arrangements enhances financial flexibility and stability, positioning the company for long-term growth.

Negative Factors

High Leverage

Elevated leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

ERP Implementation Costs

Prolonged ERP implementation costs could strain financial resources and impact profitability, affecting the company's ability to optimize operational efficiencies in the near term.

Farm Segment Challenges

Ongoing difficulties in the Farm segment may hinder revenue growth and profitability, as this segment struggles with external pressures and inventory issues.

Ag Growth International Business Overview & Revenue Model

Company Description

Ag Growth International (AFN) is a leading provider of equipment and solutions for agriculture, focusing on the manufacturing and distribution of grain handling, storage, and conditioning products. The company serves the agriculture sector with a diverse portfolio that includes grain augers, belt conveyors, grain storage bins, grain handling accessories, and aeration systems. With a global footprint, Ag Growth International caters to both commercial and farm operations, supporting agricultural productivity and efficiency.

How the Company Makes Money

Ag Growth International generates revenue primarily through the sale of its agricultural equipment and solutions. Key revenue streams include the manufacturing and distribution of grain handling products, such as augers and conveyors, as well as grain storage systems and conditioning equipment. The company benefits from its extensive distribution network and strategic partnerships with agricultural dealers and distributors worldwide, enhancing its market reach and sales potential. Additionally, AFN may engage in service agreements, maintenance contracts, and equipment financing options, further contributing to its earnings. The company's focus on innovation and product development also helps in maintaining a competitive edge and attracting new customers.

Ag Growth International Financial Statement Overview

Summary

Ag Growth International faces significant financial challenges, with declining revenues, high leverage, and weak cash flow metrics. While there are some operational efficiencies, the overall financial health is concerning, requiring strategic improvements in revenue generation and debt management to enhance stability and profitability.

Income Statement

Ag Growth International's income statement shows a challenging period with declining revenues and negative net profit margins in the TTM. The gross profit margin remains relatively stable, but the significant drop in revenue growth rate and negative net income indicate financial stress. EBIT and EBITDA margins have improved slightly, suggesting some operational efficiency gains.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio exceeding 3, indicating potential financial risk. The return on equity is negative, highlighting profitability challenges. The equity ratio is relatively low, suggesting limited financial stability. These factors point to a need for improved capital management.

Cash Flow

Cash flow analysis reveals a sharp decline in free cash flow growth, raising concerns about liquidity. The operating cash flow to net income ratio is low, indicating potential cash flow issues. The free cash flow to net income ratio is also weak, suggesting limited cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.40B	1.53B	1.46B	1.20B	994.03M
Gross Profit	402.67M	447.99M	479.13M	420.60M	304.01M	206.69M
EBITDA	210.27M	133.62M	223.07M	91.18M	116.11M	25.31M
Net Income	-6.91M	-20.08M	68.89M	-50.58M	10.56M	-61.65M
Balance Sheet
Total Assets	1.66B	1.67B	1.65B	1.65B	1.59B	1.48B
Cash, Cash Equivalents and Short-Term Investments	47.53M	79.89M	88.04M	59.64M	61.31M	62.46M
Total Debt	952.09M	895.16M	906.95M	916.32M	887.23M	842.61M
Total Liabilities	1.37B	1.37B	1.34B	1.38B	1.32B	1.22B
Stockholders Equity	288.95M	298.44M	317.98M	265.67M	268.75M	263.14M
Cash Flow
Free Cash Flow	1.21M	79.15M	48.95M	49.87M	-6.45M	34.04M
Operating Cash Flow	30.74M	110.82M	105.63M	102.17M	39.12M	74.17M
Investing Cash Flow	-38.90M	-36.54M	-43.12M	-85.77M	-75.32M	-62.70M
Financing Cash Flow	-30.22M	-82.43M	-34.11M	-18.07M	35.05M	2.56M

Ag Growth International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AFN, the sentiment is Neutral. The current price of 36.08 is above the 20-day moving average (MA) of 35.71, below the 50-day MA of 37.74, and below the 200-day MA of 37.91, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AFN.

Ag Growth International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	―	C$1.25B	13.20	9.33%	5.94%	5.53%	-21.87%
WJX	―	C$498.64M	13.75	6.93%	5.67%	2.19%	-48.80%
GDI	―	C$663.39M	18.95	7.32%	―	-0.87%	117.78%
ALC	―	C$705.88M	6.99	12.00%	4.54%	4.99%	38.70%
ARE	―	C$1.80B	70.80	0.92%	2.46%	25.68%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AFN	―	C$678.31M	-100.92	-2.30%	1.66%	-5.64%	-121.91%

Ag Growth International Corporate Events

AGI to Announce Q3 2025 Results and Host Conference Call

Ag Growth International Inc. (AGI) has scheduled a conference call on November 4, 2025, to discuss its third-quarter results for the period ending September 30, 2025. The announcement of these results, which will be released after markets close on November 3, 2025, could provide insights into AGI’s operational performance and market positioning, potentially impacting stakeholders’ perspectives.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

AGI Launches New Financing Structure for Brazilian Projects

Ag Growth International Inc. has announced the creation of a new financing structure to support large-scale grain storage and handling projects for commercial customers in Brazil. This investment fund aims to monetize long-term receivables from AGI Brazil’s projects, with an initial target capacity of BRL 1.2 billion (approximately CAD $300 million). The fund is expected to enhance AGI’s competitive advantage in the Brazilian market, streamline financing processes, and optimize working capital, thereby facilitating the development of crucial agricultural infrastructure in the region.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

AGI Declares Q3 2025 Dividend, Reinforcing Shareholder Value

Ag Growth International Inc. has declared a cash dividend of $0.15 per common share for the third quarter of 2025, payable on October 15 to shareholders of record as of September 30. This announcement reflects AGI’s ongoing commitment to delivering shareholder value and may positively impact investor confidence, reinforcing its stable financial position in the industry.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.

Ag Growth International’s Earnings Call Highlights Mixed Sentiment

Ag Growth International’s recent earnings call painted a picture of a company navigating through a mixed landscape. The sentiment was largely positive, driven by the robust performance of the Commercial segment, which showcased record order book growth and effective cost management strategies. However, challenges persist in the Farm segment, marked by difficult market conditions and high net debt leverage. Despite these hurdles, the overall outlook remains optimistic, buoyed by the strength and potential of the Commercial segment.

AGI Reports Stable Q2 2025 Results and Maintains Full-Year Outlook

Ag Growth International reported its second quarter 2025 results, showing stable revenue year-over-year at $349 million and adjusted EBITDA of $54 million, which is at the high end of their expectations. The company’s commercial segment showed strong performance, driven by international projects, while the farm segment faced challenges due to market conditions. AGI maintained its full-year adjusted EBITDA guidance, anticipating growth in the second half of 2025, supported by a robust order book in the commercial segment. The company is also working on financial strategies to improve its balance sheet and reduce net debt leverage by the end of the year.

The most recent analyst rating on (TSE:AFN) stock is a Buy with a C$61.00 price target. To see the full list of analyst forecasts on Ag Growth International stock, see the TSE:AFN Stock Forecast page.