Company Overview
Agroz Inc. operates as an investment holding company with a focus on the agricultural technology sector, specifically within the Farm Products industry. The company is vertically integrated and manages large-scale, commercial-grade indoor controlled environment agriculture (CEA) vertical farms in Malaysia, including green butterh production facilities. In terms of scale, the company carries a market capitalization of $11.23M and reported annual revenue of $62.68M over the trailing twelve months. While the employee count is not publicly disclosed, the revenue figure of $62.68M suggests that Agroz Inc. holds a position as a mid-sized entity within the consumer defensive sector, indicating a business model that generates significant turnover relative to its market valuation. This disparity between the modest market cap and substantial revenue often points to a company that may be in a specific growth phase or operates with a capital structure that influences its valuation metrics significantly.
Financial Health
The company reported a revenue of $62.68M and net income of $8.33M for the trailing twelve months, with an EBITDA of $14.16M. The gap between the $62.68M revenue and the $8.33M net income reveals a cost structure where operating expenses and taxes consume approximately 86.7% of total sales, leaving a profit margin of 13.3%. Free cash flow stands at -$613,851, which indicates that the company is currently burning cash, potentially due to capital expenditures required for expanding its vertical farming infrastructure or operational scaling. This negative free cash flow suggests limited financial flexibility for immediate dividends or debt repayment without external financing or operational efficiency improvements. The gross margin is 32.1%, the operating margin is 15.6%, and the profit margin is 13.3%; these figures collectively show that while the core agricultural operations retain a healthy portion of revenue as gross profit, significant costs associated with operating these large-scale indoor farms reduce the final profitability. On the balance sheet, the company holds $3.63M in cash against $11.39M in debt, resulting in a debt-to-equity ratio of 69.85, which characterizes a leveraged balance sheet where debt obligations exceed liquid assets. The current ratio of 1.27 indicates that the company has sufficient current assets to cover its short-term liabilities, suggesting a manageable level of short-term liquidity despite the negative free cash flow. Return on Equity is 85.9% and Return on Assets is 21.9%, metrics that reveal high management effectiveness in generating returns from shareholders' equity and the company's total asset base, respectively, even amidst the leverage and cash burn.
Valuation Assessment
The trailing P/E ratio is 5.76, while the forward P/E is not available due to a lack of projected earnings data in the current period. The absence of a forward P/E implies that analysts or the market cannot yet price in future earnings growth, often seen in companies with volatile or recently turned earnings where historical performance dominates valuation. The price-to-book ratio is 2.67, indicating that the market values the company at a premium of 167% over its book value, suggesting confidence in the intangible assets and future growth potential of its vertical farming technology. Alternative valuation metrics show a price-to-sales ratio of 0.18 and an EV/EBITDA of 1.33, which suggests the company is trading at a very low multiple relative to its sales and earnings before interest, taxes, depreciation, and amortization. The 52-week high is $7.20 and the 52-week low is $0.33, meaning the stock has experienced extreme volatility and currently trades within a wide range that reflects significant uncertainty or recent market correction. Without a specific current share price to calculate the exact percentage below the high, the wide spread between the $7.20 high and $0.33 low highlights the asset's high beta-like behavior, although a specific beta value is not available.
Growth & Income
Revenue growth year-over-year is 320.2%, representing a massive expansion in top-line sales, while earnings growth year-over-year is not available. The lack of comparable earnings growth data prevents a direct comparison of whether profitability is keeping pace with revenue, but the sheer magnitude of revenue growth suggests the business is rapidly scaling its operations. As a non-dividend payer with a payout ratio of 0.0% and no dividend yield, the company reinvests all of its net income back into the business rather than distributing cash to shareholders. This reinvestment strategy aligns with the negative free cash flow, as capital is likely being directed toward building out the indoor CEA vertical farms rather than returning to investors. The overall growth and income profile is characterized by explosive revenue expansion and a total reliance on retained earnings for growth, with no current income support from dividends.