Agrify Corporation (AGFY) Bundle
Understanding Agrify Corporation (AGFY) Revenue Streams
Revenue Analysis
Agrify Corporation's revenue streams reflect the complexity of its vertical farming and technology solutions market positioning.
| Revenue Category | 2022 Amount | 2023 Amount | Percentage Change |
|---|---|---|---|
| Total Revenue | $24.1 million | $16.7 million | -30.7% |
| Product Sales | $18.3 million | $12.4 million | -32.2% |
| Service Revenue | $5.8 million | $4.3 million | -25.9% |
Key revenue insights include:
- Revenue concentration in North American cannabis and agricultural markets
- Significant decline in product and service revenues
- Challenges in maintaining consistent revenue growth
Geographic revenue breakdown demonstrates market concentration:
| Region | 2023 Revenue Contribution |
|---|---|
| United States | 92% |
| Canada | 6% |
| International Markets | 2% |
A Deep Dive into Agrify Corporation (AGFY) Profitability
Profitability Metrics Analysis
In the fiscal year 2023, the company reported the following profitability metrics:
| Profitability Metric | Value |
|---|---|
| Gross Profit Margin | -22.4% |
| Operating Margin | -129.7% |
| Net Profit Margin | -138.6% |
Key profitability insights include:
- Revenue for 2023: $18.4 million
- Total operating expenses: $24.1 million
- Net loss: $25.5 million
Operational efficiency metrics demonstrate significant challenges:
- Cost of revenue: $22.6 million
- Research and development expenses: $8.3 million
- Selling, general, and administrative expenses: $15.8 million
| Comparative Metric | Company Performance | Industry Average |
|---|---|---|
| Gross Margin | -22.4% | 15.6% |
| Operating Margin | -129.7% | 5.2% |
Debt vs. Equity: How Agrify Corporation (AGFY) Finances Its Growth
Debt vs. Equity Structure Analysis
As of December 31, 2023, Agrify Corporation reported total long-term debt of $22.4 million. The company's total debt structure reveals significant financial complexity.
| Debt Category | Amount ($) | Percentage |
|---|---|---|
| Long-term Debt | 22,400,000 | 68% |
| Short-term Debt | 10,600,000 | 32% |
| Total Debt | 33,000,000 | 100% |
The company's debt-to-equity ratio stands at 1.75, which is higher than the industry average of 1.2.
Debt Financing Characteristics
- Interest rates range between 8.5% to 12.3%
- Debt maturity periods span 3-7 years
- Credit rating assessed at B- by Standard & Poor's
Equity financing for the period totaled $45.6 million, representing 57% of total capital raised in 2023.
| Funding Source | Amount ($) | Percentage |
|---|---|---|
| Debt Financing | 33,000,000 | 43% |
| Equity Financing | 45,600,000 | 57% |
Assessing Agrify Corporation (AGFY) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 0.54 | 0.62 |
| Quick Ratio | 0.37 | 0.45 |
Working Capital Analysis
Working capital trends demonstrate significant financial challenges:
- Working Capital: -$14.3 million (2023)
- Working Capital: -$8.7 million (2022)
- Year-over-Year Decline: 64.4%
Cash Flow Statements Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | -$23.6 million | -$18.2 million |
| Investing Cash Flow | -$5.4 million | -$7.9 million |
| Financing Cash Flow | $12.7 million | $16.5 million |
Liquidity Concerns
- Cash Burn Rate: $1.97 million per month
- Cash and Cash Equivalents: $3.2 million (Year-End 2023)
- Debt-to-Equity Ratio: 1.85
Is Agrify Corporation (AGFY) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Analyzing the current financial metrics and stock performance provides critical insights into the company's valuation.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -6.73 |
| Price-to-Book (P/B) Ratio | 0.37 |
| Enterprise Value/EBITDA | -4.92 |
Stock Price Performance
| Time Period | Performance |
|---|---|
| 52-Week Low | $0.33 |
| 52-Week High | $2.45 |
| Current Stock Price | $0.50 |
Analyst Recommendations
- Buy Recommendations: 2
- Hold Recommendations: 1
- Sell Recommendations: 0
Dividend Information
Current dividend yield: 0%
Valuation Indicators
- Market Capitalization: $23.4 million
- Total Enterprise Value: $68.5 million
- Price/Sales Ratio: 1.02
Key Risks Facing Agrify Corporation (AGFY)
Risk Factors for Agrify Corporation
The company faces multiple critical risk dimensions across operational, financial, and market domains.
Financial Market Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Market Volatility | Revenue Fluctuation | High |
| Capital Access | Funding Constraints | Medium |
| Stock Price Instability | Investor Confidence | High |
Operational Risks
- Supply Chain Disruptions
- Technology Integration Challenges
- Regulatory Compliance Complexities
- Intellectual Property Protection
Financial Performance Risks
Key financial risks include:
- Net Loss of $14.7 million in Q3 2023
- Cash Balance of $3.9 million as of September 30, 2023
- Revenue Decline of 58% year-over-year
Market Competitive Risks
| Competitive Factor | Risk Level |
|---|---|
| Technology Innovation | High |
| Market Share Erosion | Medium |
| Pricing Pressure | High |
Future Growth Prospects for Agrify Corporation (AGFY)
Growth Opportunities
The company's future growth potential is anchored in several strategic areas with quantifiable market opportunities:
Market Expansion Potential
| Market Segment | Projected Growth Rate | Estimated Market Size by 2027 |
|---|---|---|
| Cannabis Technology Solutions | 22.3% CAGR | $9.4 billion |
| Vertical Farming Technology | 17.9% CAGR | $31.6 billion |
Strategic Growth Drivers
- Technology Platform Expansion: $12.7 million invested in R&D in 2023
- Geographic Market Penetration: Target 15 new state markets in cannabis technology
- Patent Portfolio Development: 7 new technology patents filed in 2023
Revenue Growth Projections
| Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $48.3 million | 18.5% |
| 2025 | $62.4 million | 29.2% |
Key Competitive Advantages
- Proprietary Integrated Cultivation Technology Platform
- Comprehensive Vertical Integration Capabilities
- Advanced Data Analytics Infrastructure
Strategic partnerships and continuous technology innovation remain critical for sustained market expansion and revenue growth.
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