Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
AgroGalaxy Participações S.A. is a significant entity operating within Brazil's agricultural industry. The company primarily engages in the distribution and sale of various farm essentials, such as livestock, seeds, animal feed, agricultural machinery, and implements. In addition to product sales, AgroGalaxy provides a suite of services including technical agricultural assistance, phytosanitary solutions, seed repackaging, logistics for agricultural product shipments, and the marketing and export of cereals. It also facilitates online retail for its diverse product range. As of December 31, 2021, the company's extensive infrastructure included 134 retail and commercial points, 27 grain storage silos, 3 specialized soybean seed processing plants, and 5 tooling plants. These facilities are strategically located across 12 Brazilian states, serving roughly 1,000 cities. AgroGalaxy was founded in 2016 and is headquartered in São Paulo, Brazil.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD