Is it a good company at a reasonable price? This stock really has not done well over the past 10 years. I bought it for diversification reasons, but this has not really worked out for me. It does not seem that it might be doing well over the next while. It may be taken private. I think that the risk level is quite high. It would seem to be on the cheap side currently, but you have to wonder if it is a good buy.
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). By 2011 when I bought this stock, I have been interested in AFN for some time. This stock is a play on the agricultural sector. I looked on it as a backbone stock.
When I was updating my spreadsheet, I noticed the Stock Price fell almost 40% in November 2025. See article by Simply Wall Street via Yahoo Finance. The CEO was stepped down and new one appointed. See article at AGI.
One other thing I found interesting is that for the last 3 years, there has been, according to my records, 3 women on the board over the last 3 years. They had trouble and now there are only men on the board.
I guess because the decline in November 2025 and this stock has not recovered much, to the end of April I have a total return of 2.27% with a 4.03% from a capital loss and 6.30% from dividends. This stock still has not recovered much for November and is only up to $22.84 on May 23, 2026.
If you had invested in this company in December 2015, for $1,030.75 you would have bought 31 shares at $33.25 per share. In December 2025, after 10 years you would have received $423.15 in dividends. The stock would be worth $719.20. Your total return would have been $1,142.35. This would be a total return of 1.35% per year with 3.54% from capital loss and 4.89% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $33.25 | $1,030.75 | 31 | 10 | $423.15 | $719.20 | $1,142.35 |
The current dividend has just been suspended, so I am not sure what they are going to do in the future at this point. There is no current dividend information or current Dividend Payout Ratios (DPR) information.
Debt Ratios are shows that debt is far too high. The Long Term Debt/Market Cap Ratio for 2025 is far too high at 2.01 and currently at 2.20. However, because of current problems the stock price just fallen over 50%. The Liquidity Ratio for 2025 is low at 1.28 and 1.34 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.27 and currently at 1.54. The Debt Ratio for 2025 is low at 1.18 and 1.17 currently. The Leverage and Debt/Equity Ratios for 2025 are far too high at 6.70 and 5.70 and currently at 6.99 and 5.99. The Leverage and Debt/Equity Ratios have been far too high for a while.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 2.01 | 2.20 |
| Intang/GW | 1.16 | 1.17 |
| Liquidity | 1.28 | 1.34 |
| Liq. + CF | 1.27 | 1.54 |
| Debt Ratio | 1.18 | 1.17 |
| Leverage | 6.70 | 6.99 |
| D/E Ratio | 5.70 | 5.99 |
The Total Return per year is shown below for years of 5 to 22 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | -32.24% | -3.02% | -4.89% | 1.87% |
| 2015 | 10 | -24.21% | 1.19% | -3.54% | 4.73% |
| 2010 | 15 | -16.05% | -0.33% | -5.00% | 4.67% |
| 2005 | 20 | -10.60% | 12.75% | 1.86% | 10.89% |
| 2003 | 22 | -7.56% | 18.00% | 3.81% | 14.19% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and so not usable. The corresponding 10 year ratios are 15.88, 20.25 and 22.84. The corresponding historical ratios are 12.12, 16.00 and 21.17. The current ratio is negative and so useless. The ratio for 2027 is 8.47 based on a stock price of $22.00 and EPS estimate of $2.60. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share Ratios. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 9.13, 11.93 and 13.88. The corresponding 10 year ratios are 10.07, 14.26 and 17.36. The corresponding historical ratios are 11.80, 16.61 and 22.28. The current ratio is 19.47 based on a stock price of $22.00 and AEPS estimate of $1.13. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.
However, as for EPS, the AEPS for 2027 is expected to be $2.76 and so with a P/AEPS of 7.97 which is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $18.99. The 10-year low, median, and high median Price/Graham Price Ratios are 0.92, 1.34 and 1.59. The current ratio is 1.16 based on a stock price of $22.00. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 2.67. The current ratio is 1.55 based on a stock price of $22.00, Book Value of $266.7M, and Book Value per Share of $14.18. The current P/B Ratio is 42% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have a Book Value per Share estimate for 2026 of $11.22. This analyst calculates the book value differently than I do and, in this case, the 10 year median ratio is 2.65. The current ratio would be 1.96 based on a Book Value per Share of $11.22, Book Value of $211M and a stock price $22.00. This ratio is 22% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 11.48. The current ratio is 4.44 based on Cash Flow per Share estimate for 2026 of $4.96, Cash Flow of $93.3M and a stock price of $22.00. The current ratio is 61% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
The company has suspended their dividend this year, so I cannot do any dividend yield testing.
The 10-year median Price/Sales (Revenue) Ratio is 0.70. The current P/S Ratio is 0.32 based on a stock price of $22.00, Revenue estimate for 2026 of $1,295M and Revenue per Share of $68.85. The current ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably relatively cheap. The P/S Ratio test says this. Another good test is the P/GP Ratio test and it says that the stock price is relatively reasonable and this is a good test. The P/E Ratio and P/AEPS Ratio tests are showing the stock reasonable now, but cheap next year.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2), Hold (3) and Underperfrom (1). The consensus is a Buy. The 12 month stock price consensus is $26.14 with a high of $30.00 and low of $24.00. The consensus stock price of $26.14 implies a total return of 18.82%, all from capital gains based on a current stock price of $22.00.
For this stock, in 2025 analysts on Stock Chase say Do Not Buy. In 2024, all the entries thought it was a great stock to buy. They site lots of problems in the farm business. Amy Legate-Wolfe on Motley Fool is mostly positive about this stock. However, she says if margins recover, investors may warm up quickly. Yet if execution keeps slipping, the discount could stick around. Aditya Raghunath on Motley Fool thinks this stock could more than double in the next 3 years. The company put out a Press Release about its fourth quarter of 2025 results. The company put out a Press Release via Globe and Mail about their first quarter of 2026.
Simply Wall Street via Yahoo Finance reviews this stock and talks about what other reviewers are saying. Simply Wall Street says that they have 1 warning on this stock of interest payments are not well covered by earnings.
There is an interesting article on Global Newswire. Some of the shareholders would like to take the company private to do a turnaround. I hope not. I would rather keep this company, but if it goes private, I will have to sell.
Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. It has two reportable segments, Farm and Commercial. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, the United Kingdom, and India. Its geographical segments are Canada, the United States, and the International. Its web site is here Ag Growth International.
The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, June 3, 2026 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2026.... learn more on Tuesday, June 2, 2026 around 5 pm.
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