AVANGRID INC (AGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGR - US05351W1036 - Common Stock
36.02 USD
+0.29 (+0.81%)
35.86 USD
-0.16 (-0.44%)
AGR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of AGR while its profitability can be described as average. AGR is quite expensive at the moment. It does show a decent growth rate. AGR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AGR was profitable.
In the past year AGR had a positive cash flow from operations.
In the past 5 years AGR has always been profitable.
AGR had a positive operating cash flow in each of the past 5 years.
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.
AGR's Return On Equity of 5.68% is on the low side compared to the rest of the industry. AGR is outperformed by 80.00% of its industry peers.
AGR's Return On Invested Capital of 2.48% is on the low side compared to the rest of the industry. AGR is outperformed by 82.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGR is below the industry average of 5.04%.
The last Return On Invested Capital (2.48%) for AGR is above the 3 year average (1.86%), which is a sign of increasing profitability.
| 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
The Profit Margin of AGR (12.89%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AGR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.07%, AGR is doing worse than 75.56% of the companies in the same industry.
In the last couple of years the Operating Margin of AGR has declined.
AGR's Gross Margin of 74.78% is fine compared to the rest of the industry. AGR outperforms 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGR is destroying value.
The number of shares outstanding for AGR remains at a similar level compared to 1 year ago.
The number of shares outstanding for AGR has been increased compared to 5 years ago.
AGR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that AGR is in the distress zone and has some risk of bankruptcy.
AGR has a Altman-Z score of 0.56. This is amonst the worse of the industry: AGR underperforms 82.22% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that AGR is somewhat dependend on debt financing.
AGR's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. AGR outperforms 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.
With a Current ratio value of 0.51, AGR is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.44 indicates that AGR may have some problems paying its short term obligations.
AGR has a Quick ratio of 0.44. This is amonst the worse of the industry: AGR underperforms 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
AGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.39%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.02% on average over the past years.
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.46 indicates a correct valuation of AGR.
Compared to the rest of the industry, the Price/Earnings ratio of AGR is on the same level as its industry peers.
AGR is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
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 24.04, 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
AGR's 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, AGR is a good candidate for dividend investing.
AGR's Dividend Yield is rather good when compared to the industry average which is at 2.95. 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 1.88.
| 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%
36.02
+0.29 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
What is the valuation status of AVANGRID INC (AGR) stock?
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 expected EPS growth for AVANGRID INC (AGR) stock?
The Earnings per Share (EPS) of AVANGRID INC (AGR) is expected to grow by 11.56% in the next year.
Is the dividend of AVANGRID INC sustainable?
The dividend rating of AVANGRID INC (AGR) is 7 / 10 and the dividend payout ratio is 60.7%.