AVANGRID INC (AGR) Fundamental Analysis & Valuation

NYSE:AGR • US05351W1036

36.02 USD
+0.29 (+0.81%)
At close: Dec 20, 2024
35.86 USD
-0.16 (-0.44%)
After Hours: 12/20/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This AGR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

Overall AGR gets a fundamental rating of 3 out of 10. We evaluated AGR against 46 industry peers in the Electric Utilities industry. While AGR is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AGR is valued expensive at the moment. Finally AGR also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. AGR Profitability Analysis

1.1 Basic Checks

  • In the past year AGR was profitable.
  • In the past year AGR had a positive cash flow from operations.
  • Each year in the past 5 years AGR has been profitable.
  • In the past 5 years AGR always reported a positive cash flow from operatings.
AGR Yearly Net Income VS EBIT VS OCF VS FCFAGR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

1.2 Ratios

  • AGR has a Return On Assets (2.40%) which is comparable to the rest of the industry.
  • AGR has a Return On Equity of 5.68%. This is amonst the worse of the industry: AGR underperforms 80.00% of its industry peers.
  • With a Return On Invested Capital value of 2.48%, AGR is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
  • Measured over the past 3 years, the Average Return On Invested Capital for AGR is below the industry average of 4.48%.
  • The 3 year average ROIC (1.86%) for AGR is below the current ROIC(2.48%), indicating increased profibility in the last year.
Industry RankSector 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%
AGR Yearly ROA, ROE, ROICAGR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 1 2 3 4

1.3 Margins

  • AGR has a Profit Margin (12.89%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of AGR has remained more or less at the same level.
  • 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.
  • Looking at the Gross Margin, with a value of 74.78%, AGR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • AGR's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
AGR Yearly Profit, Operating, Gross MarginsAGR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. AGR Health Analysis

2.1 Basic Checks

  • AGR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for AGR remains at a similar level compared to 1 year ago.
  • AGR has a worse debt/assets ratio than last year.
AGR Yearly Shares OutstandingAGR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
AGR Yearly Total Debt VS Total AssetsAGR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

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.
  • Looking at the Altman-Z score, with a value of 0.56, AGR is doing worse than 82.22% of the companies in the same industry.
  • A Debt/Equity ratio of 0.66 indicates that AGR is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.66, AGR is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Altman-Z 0.56
ROIC/WACC0.39
WACC6.31%
AGR Yearly LT Debt VS Equity VS FCFAGR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.51 indicates that AGR may have some problems paying its short term obligations.
  • AGR has a worse Current ratio (0.51) than 88.89% of its industry peers.
  • 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.
  • The Quick ratio of AGR (0.44) is worse than 84.44% of its industry peers.
Industry RankSector Rank
Current Ratio 0.51
Quick Ratio 0.44
AGR Yearly Current Assets VS Current LiabilitesAGR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. AGR Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 91.39% over the past year.
  • Measured over the past years, AGR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.02% on average per year.
  • The Revenue has been growing slightly by 6.35% in the past year.
  • 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

  • AGR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.93% yearly.
  • Based on estimates for the next years, AGR will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
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

  • 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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AGR Yearly Revenue VS EstimatesAGR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
AGR Yearly EPS VS EstimatesAGR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

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3

4. AGR Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.46, AGR is valued correctly.
  • AGR's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of AGR to the average of the S&P500 Index (26.29), we can say AGR is valued rather cheaply.
  • A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of AGR.
  • AGR's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. AGR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.46
Fwd PE 14.71
AGR Price Earnings VS Forward Price EarningsAGR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AGR's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.35
AGR Per share dataAGR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. AGR Dividend Analysis

5.1 Amount

  • AGR has a Yearly Dividend Yield of 4.89%, which is a nice return.
  • AGR's Dividend Yield is rather good when compared to the industry average which is at 3.14. AGR pays more dividend than 93.33% of the companies in the same industry.
  • AGR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector 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.
  • As AGR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.26%
Div Incr Years0
Div Non Decr Years8
AGR Yearly Dividends per shareAGR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

  • AGR pays out 60.70% of its income as dividend. 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%
AGR Yearly Income VS Free CF VS DividendAGR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B
AGR Dividend Payout.AGR Dividend Payout, showing the Payout Ratio.AGR Dividend Payout.PayoutRetained Earnings

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AGR Fundamentals: All Metrics, Ratios and Statistics

AVANGRID INC

NYSE:AGR (12/20/2024, 8:04:00 PM)

After market: 35.86 -0.16 (-0.44%)

36.02

+0.29 (+0.81%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-22
Earnings (Next)02-19
Inst Owners12.36%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap13.94B
Revenue(TTM)8.71B
Net Income(TTM)1.12B
Analysts47.14
Price Target37.94 (5.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.89%
Yearly Dividend1.76
Dividend Growth(5Y)0.26%
DP60.7%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.91%
Min EPS beat(2)28.8%
Max EPS beat(2)65.02%
EPS beat(4)4
Avg EPS beat(4)31.76%
Min EPS beat(4)5.73%
Max EPS beat(4)65.02%
EPS beat(8)5
Avg EPS beat(8)4.42%
EPS beat(12)8
Avg EPS beat(12)7.71%
EPS beat(16)11
Avg EPS beat(16)9.56%
Revenue beat(2)2
Avg Revenue beat(2)6.02%
Min Revenue beat(2)1.26%
Max Revenue beat(2)10.77%
Revenue beat(4)2
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-5.9%
Max Revenue beat(4)10.77%
Revenue beat(8)4
Avg Revenue beat(8)1.39%
Revenue beat(12)8
Avg Revenue beat(12)4.33%
Revenue beat(16)10
Avg Revenue beat(16)3.51%
PT rev (1m)0%
PT rev (3m)0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.3%
EPS NY rev (1m)0%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
Industry RankSector Rank
PE 12.46
Fwd PE 14.71
P/S 1.6
P/FCF N/A
P/OCF 12.65
P/B 0.71
P/tB 0.85
EV/EBITDA 10.35
EPS(TTM)2.89
EY8.02%
EPS(NY)2.45
Fwd EY6.8%
FCF(TTM)-6.84
FCFYN/A
OCF(TTM)2.85
OCFY7.91%
SpS22.5
BVpS51.06
TBVpS42.3
PEG (NY)1.08
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 2.4%
ROE 5.68%
ROCE 3.31%
ROIC 2.48%
ROICexc 2.49%
ROICexgc 2.71%
OM 15.07%
PM (TTM) 12.89%
GM 74.78%
FCFM N/A
ROA(3y)1.91%
ROA(5y)1.84%
ROE(3y)4.08%
ROE(5y)4.09%
ROIC(3y)1.86%
ROIC(5y)2.01%
ROICexc(3y)1.89%
ROICexc(5y)2.05%
ROICexgc(3y)2.08%
ROICexgc(5y)2.28%
ROCE(3y)2.4%
ROCE(5y)2.59%
ROICexgc growth 3Y-4.42%
ROICexgc growth 5Y-10.04%
ROICexc growth 3Y-3.79%
ROICexc growth 5Y-9.41%
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%
F-Score6
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Debt/EBITDA 5.15
Cap/Depr 305.96%
Cap/Sales 43.06%
Interest Coverage 3.23
Cash Conversion 43.44%
Profit Quality N/A
Current Ratio 0.51
Quick Ratio 0.44
Altman-Z 0.56
F-Score6
WACC6.31%
ROIC/WACC0.39
Cap/Depr(3y)260.77%
Cap/Depr(5y)271.49%
Cap/Sales(3y)36.74%
Cap/Sales(5y)39.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.39%
EPS 3Y1.14%
EPS 5Y-1.02%
EPS Q2Q%103.7%
EPS Next Y11.56%
EPS Next 2Y8.25%
EPS Next 3Y6.59%
EPS Next 5Y5.93%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y9.55%
Revenue growth 5Y5.11%
Sales Q2Q%5.52%
Revenue Next Year1.07%
Revenue Next 2Y2.2%
Revenue Next 3Y1.14%
Revenue Next 5Y2.85%
EBIT growth 1Y88.24%
EBIT growth 3Y2.29%
EBIT growth 5Y-3.85%
EBIT Next Year129.76%
EBIT Next 3Y39.02%
EBIT Next 5Y24.63%
FCF growth 1Y-69.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.57%
OCF growth 3Y-10.64%
OCF growth 5Y-12.39%

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.