Ag Growth InternationalTSX:AFN -1.43%60 Gross Margin % is 24.96% as of Mar. 2026, which is 13% below its 10-year median of 28.82. GuruFocus rates TSX:AFN with a GF Score™ of 60/100 and a GF Value™ of C$47.12 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Ag Growth International ranks better than 54.29% on this metric.
TSX:AFN's Gross Margin % is ranked better than 54.29% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.595
vs TSX:AFN: 26.23
Ag Growth International had a gross margin of 24.96% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ag Growth International was 5.60% per year.
Ag Growth International (TSX:AFN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ag Growth International had a gross margin of 24.96% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ag Growth International Gross Margin % Related Terms
Ag Growth International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:AFN vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Ag Growth International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ag Growth International Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ag Growth International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ag Growth International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ag Growth International (TSX:AFN) has a Gross Margin % of 24.96% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ag Growth International and its competitors. This is 13% below median its historical median of 28.82. Over the past decade, Ag Growth International's Gross Margin % has ranged from 21.28 to 31.89. According to the industry distribution chart, Ag Growth International ranks #96 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 45.7%.
Is Ag Growth International's Gross Margin % too high?
Ag Growth International's current Gross Margin % of 24.96% is 13% below median its 10-year median of 28.82. Over the past 10 years, this metric has ranged from a low of 21.28 to a high of 31.89. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.60. Ag Growth International's value of 24.96% is 2.5% below this industry median. Based on the distribution chart, Ag Growth International ranks #96 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Ag Growth International has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ag Growth International's Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ag Growth International ranks #96 out of 210 companies for Gross Margin %. This puts Ag Growth International in the upper half of its industry. The industry median Gross Margin % is 25.60. Ag Growth International's value of 24.96% is 2.5% below this benchmark. Historically, Ag Growth International's own Gross Margin % has ranged from 21.28 to 31.89 over the past decade. While the company's 10-year median is 28.82 vs. the industry median of 25.60, Ag Growth International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.60, based on 210 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ag Growth International's current Gross Margin % of 24.96% is 2.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ag Growth International and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ag Growth International's current Gross Margin % is 24.96%, which is 13% below median its own 10-year median of 28.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ag Growth International stock overvalued right now?
Based on GuruFocus' analysis, Ag Growth International (TSX:AFN) is currently considered Possible Value Trap. The stock's GF Value™ is C$47.12, compared to a current price of C$19.99 — trading 57.6% below its estimated fair value. The current Gross Margin % is 24.96%, which is 13% below median its 10-year median of 28.82 and 2.5% below the Farm & Heavy Construction Machinery industry median of 25.60. Ag Growth International's overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ag Growth International (TSX:AFN), the current Gross Margin % is 24.96% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ag Growth International (TSX:AFN) Overvalued in 2026?
Based on GuruFocus' analysis, Ag Growth International stock appears to be undervalued.
The current stock price of C$19.99 is trading 57.6% below its estimated GF Value™ of C$47.12.
GuruFocus considers Ag Growth International to be Possible Value Trap.
Key valuation signals for TSX:AFN:
Gross Margin %: 24.96% (13% below median its 10-year median of 28.82)
GF Value™: C$47.12 vs. price of C$19.99 (57.6% below fair value)
Industry Position: 2.5% below the Farm & Heavy Construction Machinery median (#96 of 210)
No single metric tells the full story. See the TSX:AFN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. It has two reportable segments, Farm and Commercial. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, the United Kingdom, and India. Its geographical segments are Canada, the United States, and the International.
60GF Score
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