Liquidity remains a primary concern as the company's $390,500 cash balance relative to $40.8M in TTM revenue suggests a strained working capital cycle that may limit operational flexibility.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | 941.27K | -3.41M | -2.77M |
| Operating CF Margin % | 2.3% | -18.46% | -96.8% |
| Operating CF Growth % | 127.61% | -22.95% | - |
| Net Income | 6.35M | 5.11M | -289.87K |
| Depreciation & Amortization | 812.41K | 299.43K | 93.29K |
| Stock-Based Compensation | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 |
| Other Non-Cash Items | 2.01M | 1.53M | 315.86K |
| Working Capital Changes | -8.23M | -10.35M | -2.89M |
| Change in Receivables | -21.86M | -13.86M | -1.36M |
| Change in Inventory | 0 | 0 | 0 |
| Change in Payables | 11.79M | 1.78M | 492.88K |
| Cash from Investing | -6.82M | -2.63M | -91.89K |
| Capital Expenditures | -97.55K | -217.28K | -29.31K |
| CapEx % of Revenue | 0.24% | 1.18% | 1.02% |
| Acquisitions | 0 | 0 | 0 |
| Investments | - | - | - |
| Other Investing | -6.72M | -2.41M | -62.58K |
| Cash from Financing | 6.33M | 6.07M | 2.94M |
| Debt Issued (Net) | -425.59K | 1.27M | -75.06K |
| Equity Issued (Net) | 1000K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 |
| Other Financing | -1.27M | 374.98K | 100.33K |
| Net Change in Cash | 281.34K | 35.25K | 70.52K |
| Free Cash Flow | -5.88M | -5.33M | -2.86M |
| FCF Margin % | -14.39% | -28.87% | -99.91% |
| FCF Growth % | -10.24% | -86.34% | - |
| FCF per Share | -0.25 | -0.22 | -0.13 |
| FCF Conversion (FCF/Net Income) | 0.27x | -0.91x | 9.57x |
| Interest Paid | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 |
Tight liquidity and working capital
Given the absence of granular cash flow data, the relationship between net income and operating cash flow remains opaque, though the company's $390,500 cash position against $40.8M in revenue suggests that earnings may not be fully supported by immediate cash inflows from operations.
The significant gap between reported revenue growth and the minimal cash balance warrants investigation into the quality of earnings. Investors should monitor whether net income is being driven by non-cash adjustments or if the company is facing extended collection cycles that hinder the conversion of profits into liquid assets.
As indicated by the company's industrial-grade indoor farming model, capital expenditure is likely a primary driver of cash outflows, with the firm's reliance on specialized LED and HVAC systems necessitating consistent reinvestment to maintain the 36.26% gross margin reported in recent financial statements.
The high fixed-cost structure inherent in Controlled Environment Agriculture suggests that maintenance capex is substantial. If the company fails to optimize its proprietary environmental recipes, the capital intensity required to sustain output could further strain the already thin liquidity position.
Based on the reported $390,500 cash balance relative to $40.8M in TTM revenue, the company appears to be operating with a highly constrained working capital cycle that leaves little room for error in managing accounts receivable or inventory turnover within the Malaysian retail market.
The tight liquidity profile suggests that any delay in payments from premium grocers could force the company to seek external financing. This vulnerability highlights the importance of monitoring the cash conversion cycle to ensure that the rapid revenue expansion does not outpace the firm's ability to collect cash.
While the company's low debt-to-equity ratio of 0.37% appears favorable, the lack of detailed cash flow statements obscures potential non-cash gains from biological asset revaluations that may be inflating headline earnings without providing a corresponding benefit to the company's actual cash-generating capacity.
Investors should be cautious of relying solely on net income figures, as IAS 41 accounting for biological assets can create volatility in reported profitability. The absence of cash flow transparency makes it difficult to determine if the firm is truly self-funding its aggressive growth or if it is reliant on future capital raises.
Quick answers to the most common questions about buying AGRZ stock.
Agroz Inc. Ordinary Shares (AGRZ) generated $0.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Agroz Inc. Ordinary Shares (AGRZ) reported negative free cash flow of $5.9M in 2024, indicating capital requirements exceeded cash from operations.
Agroz Inc. Ordinary Shares (AGRZ) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.