Ag Growth International Inc. (TSE:AFN) has experienced a substantial increase in its share value over the past three years, showing a remarkable 91% escalation. This significant growth has far exceeded the market's comparatively modest return of 23% in the same period.
In more recent times, the company's returns have been slightly more subdued, with dividends included, they have seen a 52% return. This comes despite Ag Growth not recording any profit last year, an event that did little to dampen the robust annual revenue growth of 17%.
The company's share price also saw a solid annual gain of 24%. This growth aligns with the firm's strong revenue increase, suggesting a stable and consistent financial performance.
A notable factor contributing to Ag Growth's impressive performance is the significant insider purchases made during this period. These purchases hint at an optimistic outlook for the company's trajectory among those with intimate knowledge of its operations and potential.
Lastly, shareholders have reaped the benefits of these positive developments, with an impressive total shareholder return (TSR) of 101% over the past three years. Dividends have played a substantial role in enhancing this TSR, further cementing Ag Growth's position as a promising investment opportunity.
InvestingPro Insights
In line with the company's performance, InvestingPro's real-time data and tips provide additional insights into Ag Growth International Inc. As of the last twelve months of Q3 2023, the company had a market capitalization of $9240M and a revenue of $7288M, reflecting a growth rate of 9.09%. The Price / Book ratio stood at 2.3, indicating a significant valuation of the company's net assets.
InvestingPro Tips highlight the company's high earnings quality, with free cash flow exceeding net income. It also notes that the company yields a high return on invested capital. Despite a declining trend in earnings per share, strong earnings should allow management to continue dividend payments. This is particularly noteworthy considering Ag Growth has maintained dividend payments for 38 consecutive years.
InvestingPro offers a wealth of additional tips for those interested in a deeper understanding of Ag Growth's financial health and future prospects. For instance, the product lists a total of 13 tips for Ag Growth, covering aspects such as gross profit margins, returns on book equity, and the company's liquidity position.
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