Ag Growth International Inc T.AFN

Ink Research

[retiredcf]

Morning Report: Director bets on Ag Growth International 

October 19, 2022

Today we revisit agricultural equipment and technology supplier Ag Growth International (AFN). Based on its sunny INK Edge outlook, the stock looks set to sneak into our October INK Top 40 report to be published this week on the INK Research platform. We last featured Ag Growth here on November 24th. The stock is up 2.5% since that report which is not a bad showing given that the S&P/TSX Composite Index is down 12.8% over the same period.

On August 10th, Ag Growth reported Q2 sales of $389.9 million, up from $301.6 million in Q2 2021. Adjusted profit came in at $1.20 per share, up from $0.85 in the comparable period. Ag Growth highlighted adjusted EBITDA which was $66.1 million in Q2, up from $46.2 million in Q2 2021. Indeed, based on Refinitiv calculations, trailing 12-months EBITDA was $8.03 per share as of Q2, more than double $4.00 a year earlier. Ag Growth noted that strong results year-to-date have given it the confidence to revise its full-year guidance for adjusted EBITDA to at least $215 million (from $200 million previously). Q3 results are expected after the close on November 8th.

On September 23rd, Ag Growth announced that Tim Close would be stepping down from his position as President and CEO with Chief Operating Officer Paul Householder taking on the vacated roles. Meanwhile, a director has spent $721,960 picking up shares in the public market over the past six months.