Alliance Grain Traders Posts Improved Results

This company’s trajectory remains pointed in the right direction.

The Motley Fool

One of the most intriguing recovery stories in the Canadian small-cap space reported results earlier today.  And the results indicate that the company remains on the road to prosperity.

Alliance Grain Traders (TSX:AGT) checked in with improved results over the year ago period in several critical categories.  Not only were revenues, EBITDA, and earnings up substantially, the company exhibited the continuation of the trend towards an improved cash conversion cycle.

Days inventory outstanding fell to 73 days during the quarter, down from 86 days for the full-year 2012 and 80 days for the second quarter last year.  Days accounts receivable also improved to 69 days, down from 76 in 2012 and 74 in last year’s second quarter.

These figures serve as indication that indeed Alliance Grain Traders’ business is normalizing.  Should this trend continue, the company’s earnings power is significantly higher than where it currently stands, a consideration that the market is currently overlooking.

Click here now to download our special FREE report on Alliance that profiles the huge opportunity that this company has in front of it.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler owns shares of Alliance Grain Traders.  The Motley Fool does not own shares in any companies mentioned at this time.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Rose 11% in 90 Days, and it’s Still a Good Stock to Buy Now

Here's why Fortis (TSX:FTS) is among the top dividend stocks I think long-term investors want to own in this current…

Read more »

grow money, wealth build
Investing

1 Canadian Growth Stock Poised to Outperform in 2025

Restaurant Brands International (TSX:QSR) is a top growth stock that also has a massive yield and a depressed P/E multiple…

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

Is Imperial Oil Stock a Buy, Sell, or Hold for 2025?

Valued at a market cap of $55 billion, Imperial Oil pays shareholders a growing dividend yield of 2.4%. Is the…

Read more »

A worker drinks out of a mug in an office.
Investing

Here’s the Average TFSA Balance at Age 34 in Canada

Have you ever wondered how your TFSA stacks up compared to the average Canadian?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

A Dividend Giant I’d Buy Over BCE Stock Right Now

Don't get sucked in by BCE's 10% dividend -- the stock is a total yield trap. Buy this instead.

Read more »

Female raising hands enjoying vacation, standing on background of blue cloudless sky.
Dividend Stocks

Best Beginner-Friendly Stocks to Buy Now in Canada

These top TSX stocks have delivered attractive long-term returns.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Consider Sienna Senior Living for a Stable Monthly Income

Buying this Canadian dividend stock could help you build a dependable monthly income portfolio for the long term.

Read more »