x
Investment Opportunities

AGRI Stock Forecast: AgriFORCE Growing Systems Ltd.

AGRI Stock Forecast: AgriFORCE Growing Systems Ltd.
  • PublishedMay 24, 2022

AGRI stock, or AgriFORCE Growing Systems Ltd. is a publicly traded company on the Nasdaq. The company designs, manufactures and sells greenhouse farming equipment. And they sell these systems to the commercial horticulture industry. They have been in operation since 2017, with headquarters in Canada. The company sells its products to customers in over thirty countries worldwide.

Plus, commercial greenhouse growers use its products. And these help them to produce a variety of crops. Including tomatoes, cucumbers, peppers and flowers. The company’s equipment provides growers with a consistent, high-quality product. All while minimizing operating costs.

AGRI stock offers investors exposure to the global horticulture industry. Which is expected to grow significantly in the coming years. The company’s products are used by some of the world’s largest greenhouse growers. Including those in the tomato, cucumber and flower industries.

AGRI stock forecast 2022.

AGRI Stock Leadership

AGRI was founded by a team of experienced engineers and agriculturists. Its mission is to provide innovative and sustainable solutions. Specifically for the global food crisis. And the company is doing just that.

Their flagship offerings are automated growing systems and consulting. The growing systems are designed to increase yields and reduce water usage. Their consulting services help farmers to optimize their operations. Plus, AGRI has a team of experts who collaborate with farmers to help them improve their yields. Plus, decrease their inputs, and increase their profits.

And it’s led by CEO Ingo Mueller. Mr. Mueller has over 20 years of experience in the business industry. And he has held leadership positions at companies such as Petro China, and Hard Rock Hotel and Casinos.

Stock Earnings

AGRI stock reported earnings for Q4 of 2021. They beat expectations and reported EPS of -$0.20. Revenue for the quarter was, $2.7 million, which was also ahead of expectations. AGRI stock is up today on the news.

AGRI had strong earnings reports. And they were likely driven by the announcement of purchasing new companies. There was one purchased, and another is in the process. AGRI’s continued expansion will help them grow their top and bottom lines.

AGRI plans to use the momentum from their strong earnings report to continue investing in new products. And keep expanding their sales force. They are also planning to increase their marketing budget. All to raise awareness of the AGRI brand.

Risks Involved

As with any investment, there are risks with AGRI stock. The company is a small-cap stock, which means it is more volatile than large-cap stocks. Additionally, the company is based in Canada. So political and economic conditions in that country could impact the stock price.

AGRI also operates in a niche market, which could limit its growth potential. Finally, the company has a relatively high debt-to-equity ratio. Meaning it has more debt than equity. This could make it more susceptible to economic downturns.

Recent News

AgriFORCE Growing Systems Ltd. has completed the acquisition of Food Production & Processing IP from Manna Nutritional Group. This is a significant milestone for the company and will allow AGRI to continue its growth. And its expansion into the food production and processing sector.

The acquisition of this IP will give AGRI a competitive advantage in the marketplace. Plus, it will allow the company to develop new products and services. Those that will benefit its customers. AGRI strives to provide customers with the best possible products and services. And this acquisition will help to further that goal.

They also announced their progress of their acquisition of Delphy. Which is a leading European Agtech and consulting firm. This will give AGRI stock a strong foothold in the European market. And allow them to continue their growth and expansion into new markets.

AGRI Stock Market Cap

As of June 2020, AGRI stock has a market capitalization of $50 million. This is good news for investors. Because, small market caps allow investors to get in early on stock profits.

There are several reasons why AGRI’s market cap is good for investors. First, it shows that AGRI is small. And you might be wondering why this is a good thing. But it’s because getting in early and holding will bring better profits.

And they have been in business for over 20 years. They are a leading provider of agricultural products and services. This gives AGRI a strong competitive advantage over newer companies.

Also, AGRI’s market cap indicates that the company has a strong financial position. They have reported positive financial results in each of the last five years. In 2021, AGRI generated $40.5 million in revenue and $6.6 million in net income. This shows that AGRI is a profitable company with a solid financial foundation.

Overall, AGRI stock’s $50 million market cap is good news for investors. Because it indicates that AGRI is a small company with enormous potential.

AGRI Stock Industry

It’s leading provider of precision agriculture products and services. So, AgriFORCE Growing Systems Ltd. is uniquely positioned. It’s likely that it will continue to enjoy the global shift. That being the shift toward more efficient and sustainable food production practices.

The company’s innovative technology helps farmers to optimize yields while minimizing inputs. Plus, reducing costs and protecting the environment. This is increasingly important. Especially as the world population grows and demand for food increases.

Also, AGRI’s products and services are in high demand. Especially from the rapidly growing organic and sustainable agriculture sectors. This provides AGRI with a significant growth opportunity. Especially as these trends continue to gain traction.

And food costs are rising. So, there is potential for AGRI stock’s products and services to become even more valuable to farmers around the world. Automation and an increase in production are sought after business commodities. The farming community is looking for AGRI’s products. So, AGRI is in a great position to continue its growth and expansion.

Agriculture is a cyclical industry, so AGRI’s stock price will be affected by the difficulties of the market. But, the long-term trends are positive for AGRI. Thus, AGRI is a worthwhile investment for those looking for exposure to the agriculture sector.

Final Thoughts

Overall, AGRI stock is is a great position to capitalize on trends driving the agriculture industry. The company has a strong market position and innovative products and services. Plus, it’s committed management team make AGRI an attractive investment for long-term growth.

Written By
Ben Broadwater