12.08 USD
+0.28 (+2.37%)
We assign a fundamental rating of 4 out of 10 to AGNC. AGNC was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While AGNC is still in line with the averages on profitability rating, there are concerns on its financial health. AGNC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- AGNC had positive earnings in the past year.
- In the past year AGNC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: AGNC reported negative net income in multiple years.
- In multiple years AGNC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of AGNC (0.63%) is better than 72.06% of its industry peers.
- The Return On Equity of AGNC (6.00%) is better than 85.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.62%, AGNC is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 6% | ||
| ROIC | 0.62% |
ROA(3y)-0.54%
ROA(5y)-0.22%
ROE(3y)-2.86%
ROE(5y)-1.11%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of AGNC (18.05%) is better than 83.82% of its industry peers.
- In the last couple of years the Profit Margin of AGNC has declined.
- AGNC has a Operating Margin of 22.01%. This is amongst the best in the industry. AGNC outperforms 83.82% of its industry peers.
- In the last couple of years the Operating Margin of AGNC has remained more or less at the same level.
- AGNC has a Gross Margin of 25.11%. This is comparable to the rest of the industry: AGNC outperforms 47.06% of its industry peers.
- AGNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.01% | ||
| PM (TTM) | 18.05% | ||
| GM | 25.11% |
OM growth 3Y-35.43%
OM growth 5Y-1.27%
PM growth 3Y-35.92%
PM growth 5Y-2.73%
GM growth 3Y-35.24%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
- There is no outstanding debt for AGNC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- Based on the Altman-Z score of -1.03, we must say that AGNC is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AGNC (-1.03) is worse than 94.12% of its industry peers.
- The Debt to FCF ratio of AGNC is 157.31, which is on the high side as it means it would take AGNC, 157.31 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 157.31, AGNC is in line with its industry, outperforming 48.53% of the companies in the same industry.
- AGNC has a Debt/Equity ratio of 8.30. This is a high value indicating a heavy dependency on external financing.
- AGNC has a worse Debt to Equity ratio (8.30) than 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.3 | ||
| Debt/FCF | 157.31 | ||
| Altman-Z | -1.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.02 indicates that AGNC may have some problems paying its short term obligations.
- AGNC's Current ratio of 0.02 is on the low side compared to the rest of the industry. AGNC is outperformed by 88.24% of its industry peers.
- AGNC has a Quick Ratio of 0.02. This is a bad value and indicates that AGNC is not financially healthy enough and could expect problems in meeting its short term obligations.
- AGNC's Quick ratio of 0.02 is on the low side compared to the rest of the industry. AGNC is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
- The earnings per share for AGNC have decreased strongly by -20.42% in the last year.
- The earnings per share for AGNC have been decreasing by -10.92% on average. This is quite bad
EPS 1Y (TTM)-20.42%
EPS 3Y-21.4%
EPS 5Y-10.92%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%79.13%
3.2 Future
- The Earnings Per Share is expected to grow by 2.05% on average over the next years.
- Based on estimates for the next years, AGNC will show a very strong growth in Revenue. The Revenue will grow by 29.60% on average per year.
EPS Next Y6.31%
EPS Next 2Y2.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year57.74%
Revenue Next 2Y29.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.95, the valuation of AGNC can be described as very cheap.
- 83.82% of the companies in the same industry are more expensive than AGNC, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AGNC to the average of the S&P500 Index (27.25), we can say AGNC is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.48, the valuation of AGNC can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AGNC is valued cheaper than 82.35% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AGNC to the average of the S&P500 Index (25.98), we can say AGNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
- AGNC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.45 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- AGNC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y2.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 12.15%, AGNC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 11.26, AGNC pays a bit more dividend than its industry peers.
- AGNC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.15% |
5.2 History
- The dividend of AGNC decreases each year by -5.92%.
- AGNC has paid a dividend for at least 10 years, which is a reliable track record.
- AGNC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.92%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- 221.40% of the earnings are spent on dividend by AGNC. This is not a sustainable payout ratio.
DP221.4%
EPS Next 2Y2.05%
EPS Next 3YN/A
AGNC INVESTMENT CORP / AGNC FAQ
Can you provide the ChartMill fundamental rating for AGNC INVESTMENT CORP?
ChartMill assigns a fundamental rating of 4 / 10 to AGNC.
What is the valuation status for AGNC stock?
ChartMill assigns a valuation rating of 6 / 10 to AGNC INVESTMENT CORP (AGNC). This can be considered as Fairly Valued.
What is the profitability of AGNC stock?
AGNC INVESTMENT CORP (AGNC) has a profitability rating of 6 / 10.
What is the earnings growth outlook for AGNC INVESTMENT CORP?
The Earnings per Share (EPS) of AGNC INVESTMENT CORP (AGNC) is expected to grow by 6.31% in the next year.
Can you provide the dividend sustainability for AGNC stock?
The dividend rating of AGNC INVESTMENT CORP (AGNC) is 4 / 10 and the dividend payout ratio is 221.4%.