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 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 valied quite expensively at the moment, while it does show a decent growth rate. Finally AGR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AGR had positive earnings in the past year.
- AGR had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 2.40%. This is comparable 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.
- 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.
- AGR had an Average Return On Invested Capital over the past 3 years of 1.86%. This is below the industry average of 4.58%.
- 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
- With a Profit Margin value of 12.89%, AGR perfoms like the industry average, outperforming 53.33% of the companies in the same 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.
- In the last couple of years the Gross Margin of AGR has remained more or less at the same level.
| 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
- 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.
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 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.
- With a decent Debt to Equity ratio value of 0.66, AGR is doing good in the industry, outperforming 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.39
WACC6.31%
2.3 Liquidity
- AGR has a Current 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.
- 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 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
- The Earnings Per Share has grown by an impressive 91.39% over the past year.
- AGR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.02% yearly.
- Looking at the last year, AGR shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
- Measured over the past years, AGR shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
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.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.46 indicates a correct valuation of AGR.
- AGR's Price/Earnings ratio is in line with the industry average.
- AGR is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- 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.
- When comparing the Price/Forward Earnings ratio of AGR to the average of the S&P500 Index (24.29), we can say AGR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGR is on the same level as its industry peers.
| 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%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.89%, AGR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.93, AGR pays a better dividend. On top of this AGR pays more dividend than 93.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, AGR pays a better dividend.
| 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
- 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%
36.02
+0.29 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-22 2024-10-22/amc
Earnings (Next)02-19 2025-02-19/amc
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.
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.