Simple Concepts Research Group

Undervalued Stock to Watch: AgroFresh Solutions (AGFS)

by | Oct 2, 2021 | Stock Picks

AgroFresh Solutions (AGFS) Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for AgroFresh Solutions (AGFS) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

AgroFresh Solutions Fundamentals

AgroFresh Solutions Stock Rating

Stock Price Target: $5.71

In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for AgroFresh Solutions in comparison to the Specialty Chemical industry and the S&P 500.

AgroFresh Solutions is a Micro-Cap company with a current Market Cap of $111.5M.

Earnings Yield

AgroFresh SolutionsSpecialty ChemicalS&P 500T-Bill (10Y)

The current earnings yield for AgroFresh Solutions is 11.84%, in comparison to 2.98% for the S&P 500 and 1.48% for the 10-year treasury bond. The median earnings yield for the Specialty Chemical industry is 15.82%.


AgroFresh SolutionsSpecialty ChemicalS&P 500

AgroFresh Solutions is currently trading at a P/S of 0.69. The P/S for the Specialty Chemical industry is 2.73 and the P/S for the S&P 500 is 3.09.


AgroFresh SolutionsSpecialty ChemicalS&P 500

AgroFresh Solutions is currently trading at a P/B of 0.41. The P/B for the Specialty Chemical industry is 3.10 and the P/B for the S&P 500 is 4.58.

Return on Invested Capital (ROIC)

AgroFresh SolutionsSpecialty ChemicalS&P 500

AgroFresh Solutions ROIC is currently -0.05% in comparison to 6.38% for the Specialty Chemical industry and 8.6% for the S&P 500.

YTD Performance

COMPANYSpecialty ChemicalS&P 500

The YTD performance for AgroFresh Solutions is -5.29%. The Specialty Chemical industry has a YTD performance of 8.58% in comparison to the YTD S&P 500 performance of 14.49%.

Recent Financial Results

  • Q2 2021 net sales increased 9.7% to $21.9 million versus the prior year period
    • First half 2021 net sales increased 14.9%
  • Diversification of revenue grew 23% TTM versus the prior year (40.6% of consolidated revenues during this period)
  • Net loss of $17.3 million for the Q2 2021 compared to net loss of $16.8 million for Q2 2020
  • EBITDA of $1M for the Q2 2021 compared to $0.2M in the prior year period
    • First half 2021 EBITDA increased 32.2% to $15.1 million versus $11.4 million in the prior year

Stock Price Target: $5.71

Company Overview

COMPANY Stock Rating

AgroFresh Solutions provides data-driven technologies and services to enhance fresh produce quality and extension of shelf life. The company is composed of two segments: AgroFresh Core and Tecnidex. It offers harvesting tech solutions primarily in the following fruit categories: apples, pears, citrus, kiwifruit, avocados, and bananas. AgroFresh provides support to growers, packers, and retailers along the supply chain in order to enhance freshness and quality, while reducing waste.

The flagship product for AgroFresh is its SmartFresh system which customers use to regulate the effects of post-harvest ripening in order to preserve the texture, taste, and appearance of produce during the storage, transportation, and retail process.

In addition the SmartFresh system, the company also provides the following technologies to growers and retailers:

  • Harvista technology – used by customers harvesting pome fruit, blueberries, and cherries.
  • FreshCloud technology – a digital service platform that allows users to monitor and screen produce.
  • LandSpring technology – for usage on transplanted vegetable seedlings.
  • RipeLock technology – a packaging solution for fruits and vegetables.

AgroFresh also offers a variety of fungicides, disinfectants, coatings, and packinghouse equipment for the citrus market.

The company is headquartered in Philadelpha, PA and operates in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The current CEO is Clinton Lewis.

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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.