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Ag Growth International Inc T.AFN.DB.J


Primary Symbol: T.AFN Alternate Symbol(s):  AGGZF | T.AFN.DB.H | T.AFN.DB.G | T.AFN.DB.I

Ag Growth International Inc. is a provider of the equipment and solutions required to support the storage, transport, and processing of food globally. The Company provides equipment solutions for agriculture bulk commodities, including seed, fertilizer, grain, rice, feed, and food processing systems. It has manufacturing facilities in Canada, the United States, Brazil, Italy, France, and India and distributes its products globally. Its segments include Farm and commercial. Its Farm segment focuses on the needs of on-farm customers, and its product offerings include grain, seed, and fertilizer handling equipment; aeration products; grain and fuel storage solutions, and grain management technologies. Its Commercial segment focuses on commercial entities, such as port facility operators, food processors and elevators. Its product offerings include larger diameter grain storage bins and high-capacity grain handling equipment; food and feed handling storage and processing equipment.


TSX:AFN - Post by User

Post by SunsetGrillon Aug 21, 2023 3:24pm
210 Views
Post# 35598452

SCOTIA - INVESTOR MEETING

SCOTIA - INVESTOR MEETINGLatest Research (August 17, 2023):OUR TAKE: Positive. We hosted investor meetings with CEO, Paul Householder, and CFO, Jim Rudyk, on August 16th. The story is a compelling one. From 2015 to 2020, AFN expanded and diversified its product offering and geographic presence with ~$900 million of capital in M&A and growth capex – but never fully integrated the assets. It is now as it optimizes costs, enhances sales/pricing strategies, and realizes on revenue synergies. Recent integration efforts materialized into significant margin expansion in 2Q. And, despite the recent step-change in operating performance, management noted it was still early days in driving improvements.AFN shares are approaching its highs – and are doing so with its EV/EBITDA multiple at a decade-low. The shares trade below 2019-levels despite the company nearly doubling EBITDA (it has roughly the same net debt and s/o). With positive momentum in terms of growth/margin, we are increasingly confident AFN can maintain strong growth rates into 2024 – and settle with <2.5x of net debt and >$5.50/share of FCF in the NTM.
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