Is AgriFORCE Growing Systems a Good Farming Stock to Add to Your Portfolio?

: AGRI | AgriFORCE Growing Systems, Ltd. News, Ratings, and Charts

AGRI – AgTech company AgriForce Growing Systems (AGRI) has made solid operational advancements through various strategic acquisitions and collaborations over the past months. However, the company has yet to generate revenue, considering it is in the early stages of development. So, would it be worth adding the stock to one’s portfolio now? Read on. Let’s find out.

AgriForce Growing Systems Ltd. (AGRI) in Vancouver, Canada, made its market debut on July 8, 2021. The company is focused primarily on developing and acquiring crop production knowledge and intellectual property, which is supplemented by modern AgTech facilities and solutions. Its shares have gained 11.6% in price over the past month on the back of a recent strategic acquisition and advancement in its Manna Nutritional Group (MNG) food production and processing intellectual property (IP).

However, the stock is down 27.7% over the past six months and 14.5% over the past three months. In addition, closing yesterday’s trading session at $1.74, the stock is currently trading 79.4% below its 52-week high of $8.45.

While the company strives to boost its growth through various differentiated strategies, its increasing investments could impact its cash reserves.

Here is what could shape AGRI’s performance in the near term:

Acquisition

This month, AGRI agreed to acquire Delphy Groep BV (Delphy), a Netherlands-based AgTech consultancy business, for$29 million in cash and equity. AGRI intends to capitalize on the acquisition by expanding Delphy’s consulting operations, establishing a research and development center in North America, facilitating greater penetration of its Asian markets, and expanding its operations in international markets where Delphy already has a presence.

Mixed Financials

AGRI’s cash and cash equivalents increased 1405.1% year-over-year to $9.83 million for the nine months ended Sept. 30, 2021. However, its operating loss grew 142.7% from its  year-ago value to $2.38 million for the third quarter, ended Sept. 30, 2021. The company’s net loss increased 87.3% from the prior-year quarter to $1.82 million, while its loss per share grew 16.7% from the prior-year quarter to $0.14.

Poor Profitability

AGRI’s trailing-12-months ROC and ROA are 45.2% and 32.7%, respectively. Furthermore, its cash from operations stood at a negative $3.24 million compared to the $441.90 million industry average.

POWR Ratings Reflect Uncertainty

AGRI has an overall C rating, which equates to a Neutral in our proprietary POWR Ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. AGRI has a D grade for Stability, which shows higher volatility than its peers. In addition, the stock has a C for Growth and Quality, which is in sync with its mixed financials and profitability.

Among the 30 stocks in the D-rated Agriculture industry, AGRI is ranked #21.

Beyond what I have stated above, one  can view AGRI ratings for Value, Momentum, and Sentiment here.

Bottom Line

While the company’s increasing investments across business operations indicate strong long-term growth prospects, it has yet to generate any meaningful revenue and is still in the early stages of development. In addition, the stock is currently trading below its 50-day and 200-day moving average of $1.78 and $1.83, respectively, indicating a bearish sentiment. So, considering its inadequate financials, we believe investors should wait for its prospects to stabilize before investing in the stock.

How Does AgriFORCE Growing Systems Ltd. (AGRI) Stack Up Against its Peers?

While AGRI has an overall C rating, one might want to consider its industry peers, Nutrien Ltd. (NTR) and Archer Daniels Midland Co. (ADM), which have an overall A (Strong Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


AGRI shares were unchanged in premarket trading Wednesday. Year-to-date, AGRI has declined -16.35%, versus a -9.56% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AGRIGet RatingGet RatingGet Rating
NTRGet RatingGet RatingGet Rating
ADMGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Updated Stock Market Expectations

The S&P 500 (SPY) has already reached an impressive goal of hitting 6,000. Yet you can see how much shares are struggling now up against this resistance. Steve Reitmeister shares his views on what comes next for the market and his top 10 stocks to stay on the right side of the action.

Read More Stories

More AgriFORCE Growing Systems, Ltd. (AGRI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AGRI News