Ag Growth International Inc. (AFN:TSX) Analysts rate as Strong Buy, Analysis is Bullish

STA Research
by: STA Research
Ag Growth International Inc

Ag Growth International Inc Stock Analysis:

Based on the AG Growth International Inc (AFN stock) forecasts from 7 analysts, the average analyst target price for Ag Growth International Inc is CAD 50.58 over the next 12 months. Ag Growth International Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Ag Growth International Inc is Slightly Bullish , which is based on 9 positive signals and 6 negative signals. At the last closing, Ag Growth International Inc’s stock price was CAD 39.50Ag Growth International Inc’s stock price has changed by +17.88% over the past week, +31.01% over the past month and +40.87% over the last year.

About AFN Stock (AFN:CA:TSX)

Ag Growth International Inc., together with its subsidiaries, manufactures and distributes grain and rice handling, storage, and conditioning equipment in Canada, the United States, and internationally. The company offers storage equipment comprising grain and bolted bins, hopper bins, smooth wall bins, temporary storage equipment, unloads and sweeps, water tanks, fuel tanks; and conditioning equipment, such as mixed flow dryers, fans and heaters, aerations, airaugers, aeration floors, vents and exhausters, stirrings, and accessories. It also provides portable handling equipment, such as portable augers, conveyors, grain vacs, post pounders, seed treaters, and accessories; and permanent handling equipment, including bucket elevators, chain and belt conveyors, enclosed belt conveyors, distributors, feed handling equipment, screw feeders and conveyors, and spouts and connections. In addition, the company offers towers, catwalks, ladders, all-steel buildings, flat storage buildings; batch blenders, bulk scales, declining weight blenders, vertical blenders, micro-dosing systems, mixers, milling equipment; and controllers, hazard monitoring equipment, monitoring and automation equipment, sampling solutions. Further, it provides cleaning and destoners, rice milling and processing equipment, bin unloads, blending and control systems, Liquid and dry fertilizer blending and conveying equipment, turnkey design and build construction solutions for seed and fertilizer facilities, and farm management software. The company markets its products under the AGI, Airlanco, Batco, Brownie, CMC, Compass, Danmare, Ezee-dry, Frame, Grain Guard, Grainmaxx, Hi Roller, Hutchinson, Improtech, Junge, Keho, Mayrath, Milltec, MMS, Neco, PTM, REM, Sabe, Sentinel, Storm, Suretrack, Tramco, Twister, Westeel, Westfield, Wheatheart, and Yargus brand names. It provides its equipment for agricultural commodities. The company was founded in 1996 and is headquartered in Winnipeg, Canada.

Most Recent Analyst Ratings for AG Growth International:

News:

Raymond James just recently lowered their FY2023 earnings estimates for AFN stock, on Friday August 12th. The analyst at Raymond James,  S. Hansen is now forecasting that the AG Growth will post earnings per share of $3.75.

Just last week AFN stock company reported their earnings for the three months ended June 30, 2022 and the company reported profit before income taxes for the three-months ended June 30, 2022 at ($2.3) million against a profit of $16.1 million last year.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

AFN stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

AFN stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

AFN stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

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