ASSURED GUARANTY LTD (AGO)
BMG0585R1060 - Common Stock
Taking everything into account, AGO scores 4 out of 10 in our fundamental rating. AGO was compared to 139 industry peers in the Insurance industry. There are concerns on the financial health of AGO while its profitability can be described as average. AGO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AGO had positive earnings in the past year.
In the past year AGO had a positive cash flow from operations.
Each year in the past 5 years AGO has been profitable.
AGO had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
AGO's Return On Assets of 5.95% is amongst the best of the industry. AGO outperforms 89.05% of its industry peers.
Looking at the Return On Equity, with a value of 12.98%, AGO is in the better half of the industry, outperforming 61.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 12.98% | ||
| ROIC | N/A |
ROA(3y)2.92%
ROA(5y)2.79%
ROE(3y)7.19%
ROE(5y)6.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AGO (87.36%) is better than 97.81% of its industry peers.
In the last couple of years the Profit Margin of AGO has grown nicely.
AGO has a Operating Margin of 31.71%. This is amongst the best in the industry. AGO outperforms 94.89% of its industry peers.
In the last couple of years the Operating Margin of AGO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.71% | ||
| PM (TTM) | 87.36% | ||
| GM | N/A |
OM growth 3Y-16.62%
OM growth 5Y-18.66%
PM growth 3Y27.06%
PM growth 5Y9.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AGO has less shares outstanding than it did 1 year ago.
AGO has less shares outstanding than it did 5 years ago.
AGO has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AGO is 188.44, which is on the high side as it means it would take AGO, 188.44 years of fcf income to pay off all of its debts.
AGO has a worse Debt to FCF ratio (188.44) than 79.56% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that AGO is not too dependend on debt financing.
AGO has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 188.44 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 210.37%, which is quite impressive.
Measured over the past years, AGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.26% on average per year.
Looking at the last year, AGO shows a decrease in Revenue. The Revenue has decreased by -1.32% in the last year.
AGO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.89% yearly.
EPS 1Y (TTM)210.37%
EPS 3Y53.86%
EPS 5Y20.26%
EPS Q2Q%140%
Revenue 1Y (TTM)-1.32%
Revenue growth 3Y-0.07%
Revenue growth 5Y-1.89%
Sales Q2Q%104.71%
3.2 Future
AGO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.86% yearly.
The Revenue is expected to grow by 26.96% on average over the next years. This is a very strong growth
EPS Next Y-43.04%
EPS Next 2Y-23.17%
EPS Next 3Y-12.66%
EPS Next 5Y-5.86%
Revenue Next Year140.62%
Revenue Next 2Y53.79%
Revenue Next 3Y33.59%
Revenue Next 5Y26.96%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AGO is valuated cheaply with a Price/Earnings ratio of 7.02.
Based on the Price/Earnings ratio, AGO is valued a bit cheaper than 75.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of AGO to the average of the S&P500 Index (28.76), we can say AGO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.73, the valuation of AGO can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as AGO.
AGO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGO indicates a rather expensive valuation: AGO more expensive than 80.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 516.1 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as AGO's earnings are expected to decrease with -12.66% in the coming years.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-23.17%
EPS Next 3Y-12.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, AGO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.95, AGO has a dividend in line with its industry peers.
AGO's Dividend Yield is slightly below the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of AGO is nicely growing with an annual growth rate of 12.50%!
AGO has paid a dividend for at least 10 years, which is a reliable track record.
AGO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.5%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
AGO pays out 9.46% of its income as dividend. This is a sustainable payout ratio.
DP9.46%
EPS Next 2Y-23.17%
EPS Next 3Y-12.66%
ASSURED GUARANTY LTD
NYSE:AGO (11/6/2024, 8:10:24 PM)
Premarket: 86.7 -1.54 (-1.75%)88.24
+5.76 (+6.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.02 | ||
| Fwd PE | 13.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 12.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.71% | ||
| PM (TTM) | 87.36% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)210.37%
EPS 3Y53.86%
EPS 5Y
EPS Q2Q%
EPS Next Y-43.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.32%
Revenue growth 3Y-0.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y