Overall AGR gets a fundamental rating of 3 out of 10. We evaluated AGR against 46 industry peers in the Electric Utilities industry. AGR has a medium profitability rating, but doesn't score so well on its financial health evaluation. AGR is quite expensive at the moment. It does show a decent growth rate. AGR also has an excellent dividend rating.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AGR was profitable.
AGR had a positive operating cash flow in the past year.
AGR had positive earnings in each of the past 5 years.
Each year in the past 5 years AGR had a positive operating cash flow.

1.2 Ratios

AGR's Return On Assets of 2.40% is in line compared to the rest of the industry. AGR outperforms 44.44% of its industry peers.
With a Return On Equity value of 5.68%, AGR is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
The Return On Invested Capital of AGR (2.48%) is worse than 82.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGR is below the industry average of 4.58%.
The 3 year average ROIC (1.86%) for AGR is below the current ROIC(2.48%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	2.4%
ROE	5.68%
ROIC	2.48%

ROA(3y)1.91%

ROA(5y)1.84%

ROE(3y)4.08%

ROE(5y)4.09%

ROIC(3y)1.86%

ROIC(5y)2.01%

1.3 Margins

AGR has a Profit Margin (12.89%) which is comparable to the rest of the industry.
AGR's Profit Margin has been stable in the last couple of years.
AGR's Operating Margin of 15.07% is on the low side compared to the rest of the industry. AGR is outperformed by 75.56% of its industry peers.
In the last couple of years the Operating Margin of AGR has declined.
AGR has a better Gross Margin (74.78%) than 73.33% of its industry peers.
AGR's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	15.07%
PM (TTM)	12.89%
GM	74.78%

OM growth 3Y-6.63%

OM growth 5Y-8.53%

PM growth 3Y0.96%

PM growth 5Y0.86%

GM growth 3Y-3.27%

GM growth 5Y-1.02%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGR is destroying value.
Compared to 1 year ago, AGR has about the same amount of shares outstanding.
Compared to 1 year ago, AGR has a worse debt to assets ratio.

2.2 Solvency

AGR has an Altman-Z score of 0.56. This is a bad value and indicates that AGR is not financially healthy and even has some risk of bankruptcy.
AGR's Altman-Z score of 0.56 is on the low side compared to the rest of the industry. AGR is outperformed by 82.22% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that AGR is somewhat dependend on debt financing.
AGR has a better Debt to Equity ratio (0.66) than 64.44% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.66
Debt/FCF	N/A
Altman-Z	0.56

ROIC/WACC0.39

WACC6.31%

2.3 Liquidity

A Current Ratio of 0.51 indicates that AGR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, AGR is doing worse than 88.89% of the companies in the same industry.
AGR has a Quick Ratio of 0.51. This is a bad value and indicates that AGR is not financially healthy enough and could expect problems in meeting its short term obligations.
AGR's Quick ratio of 0.44 is on the low side compared to the rest of the industry. AGR is outperformed by 84.44% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.51
Quick Ratio	0.44

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 91.39% over the past year.
The Earnings Per Share has been decreasing by -1.02% on average over the past years.
AGR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
AGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.

EPS 1Y (TTM)91.39%

EPS 3Y1.14%

EPS 5Y-1.02%

EPS Q2Q%103.7%

Revenue 1Y (TTM)6.35%

Revenue growth 3Y9.55%

Revenue growth 5Y5.11%

Sales Q2Q%5.52%

3.2 Future

The Earnings Per Share is expected to grow by 5.93% on average over the next years.
AGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.85% yearly.

EPS Next Y11.56%

EPS Next 2Y8.25%

EPS Next 3Y6.59%

EPS Next 5Y5.93%

Revenue Next Year1.07%

Revenue Next 2Y2.2%

Revenue Next 3Y1.14%

Revenue Next 5Y2.85%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.46, the valuation of AGR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of AGR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AGR to the average of the S&P500 Index (27.21), we can say AGR is valued rather cheaply.
AGR is valuated correctly with a Price/Forward Earnings ratio of 14.71.
AGR's Price/Forward Earnings ratio is in line with the industry average.
AGR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	12.46
Fwd PE	14.71

4.2 Price Multiples

AGR's Enterprise Value to EBITDA is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	10.35

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.

PEG (NY)1.08

PEG (5Y)N/A

EPS Next 2Y8.25%

EPS Next 3Y6.59%

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5. Dividend

5.1 Amount

AGR has a Yearly Dividend Yield of 4.89%, which is a nice return.
Compared to an average industry Dividend Yield of 2.90, AGR pays a better dividend. On top of this AGR pays more dividend than 93.33% of the companies listed in the same industry.
AGR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.

		Industry Rank	Sector Rank
Dividend Yield	4.89%

5.2 History

The dividend of AGR has a limited annual growth rate of 0.26%.
AGR has been paying a dividend for over 5 years, so it has already some track record.
AGR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Dividend Growth(5Y)0.26%

Div Incr Years0

Div Non Decr Years8

5.3 Sustainability

60.70% of the earnings are spent on dividend by AGR. This is not a sustainable payout ratio.
AGR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP60.7%

EPS Next 2Y8.25%

EPS Next 3Y6.59%

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AVANGRID INC / AGR FAQ

Can you provide the ChartMill fundamental rating for AVANGRID INC?

ChartMill assigns a fundamental rating of 3 / 10 to AGR.

Can you provide the valuation status for AVANGRID INC?

ChartMill assigns a valuation rating of 3 / 10 to AVANGRID INC (AGR). This can be considered as Overvalued.

What is the profitability of AGR stock?

AVANGRID INC (AGR) has a profitability rating of 4 / 10.

What is the valuation of AVANGRID INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AVANGRID INC (AGR) is 12.46 and the Price/Book (PB) ratio is 0.71.

How financially healthy is AVANGRID INC?

The financial health rating of AVANGRID INC (AGR) is 1 / 10.