ASSURED GUARANTY LTD (AGO)
BMG0585R1060 - Common Stock
Overall AGO gets a fundamental rating of 4 out of 10. We evaluated AGO against 140 industry peers in the Insurance industry. While AGO is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AGO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AGO was profitable.
In the past year AGO had a positive cash flow from operations.
AGO had positive earnings in each of the past 5 years.
AGO had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
AGO has a better Return On Assets (5.95%) than 87.05% of its industry peers.
The Return On Equity of AGO (12.76%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 12.76% | ||
| 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
AGO has a better Profit Margin (86.00%) than 97.84% of its industry peers.
AGO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 59.76%, AGO belongs to the top of the industry, outperforming 97.84% of the companies in the same industry.
In the last couple of years the Operating Margin of AGO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.76% | ||
| PM (TTM) | 86% | ||
| 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
Compared to 1 year ago, AGO has less shares outstanding
Compared to 5 years ago, AGO has less shares outstanding
AGO has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AGO is 8.32, which is on the high side as it means it would take AGO, 8.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.32, AGO is doing worse than 68.35% of the companies in the same industry.
AGO has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
AGO has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 8.32 | ||
| 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 115.86%, which is quite impressive.
AGO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.26% yearly.
The Revenue has been growing slightly by 0.47% in the past year.
AGO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.89% yearly.
EPS 1Y (TTM)115.86%
EPS 3Y53.86%
EPS 5Y20.26%
EPS Q2Q%-29.24%
Revenue 1Y (TTM)0.47%
Revenue growth 3Y-0.07%
Revenue growth 5Y-1.89%
Sales Q2Q%114.74%
3.2 Future
Based on estimates for the next years, AGO will show a decrease in Earnings Per Share. The EPS will decrease by -5.86% on average per year.
Based on estimates for the next years, AGO will show a very strong growth in Revenue. The Revenue will grow by 26.96% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue 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
A Price/Earnings ratio of 7.96 indicates a rather cheap valuation of AGO.
72.66% of the companies in the same industry are more expensive than AGO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AGO to the average of the S&P500 Index (28.96), we can say AGO is valued rather cheaply.
A Price/Forward Earnings ratio of 14.33 indicates a correct valuation of AGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AGO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
68.35% of the companies in the same industry are cheaper than AGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
AGO's earnings are expected to decrease with -12.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-23.17%
EPS Next 3Y-12.66%
5. Dividend
5.1 Amount
AGO has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
AGO's Dividend Yield is comparable with the industry average which is at 4.25.
AGO's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of AGO is nicely growing with an annual growth rate of 12.50%!
AGO has been paying a dividend for at least 10 years, so it has a reliable track record.
AGO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.5%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
AGO pays out 9.30% of its income as dividend. This is a sustainable payout ratio.
DP9.3%
EPS Next 2Y-23.17%
EPS Next 3Y-12.66%
ASSURED GUARANTY LTD
NYSE:AGO (11/21/2024, 8:11:17 PM)
After market: 92.11 0 (0%)92.11
+0.87 (+0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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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 | 7.96 | ||
| Fwd PE | 14.33 | ||
| 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)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 12.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 59.76% | ||
| PM (TTM) | 86% | ||
| 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 | 0.3 | ||
| 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)115.86%
EPS 3Y53.86%
EPS 5Y
EPS Q2Q%
EPS Next Y-43.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.47%
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