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%)
Taking everything into account, AGR scores 3 out of 10 in our fundamental rating. AGR was compared to 46 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 valied quite expensively at the moment, while 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.
- AGR had a positive operating cash flow in the past year.
- Each year in the past 5 years AGR has been profitable.
- AGR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AGR (2.40%) is comparable to the rest of the industry.
- 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.
- Looking at the Return On Invested Capital, with a value of 2.48%, AGR is doing worse than 82.22% of the companies in the same industry.
- 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 of 12.89%. This is comparable to the rest of the industry: AGR outperforms 53.33% of its industry peers.
- In the last couple of years the Profit Margin of AGR has remained more or less at the same level.
- The Operating Margin of AGR (15.07%) is worse than 75.56% of its industry peers.
- AGR's Operating Margin has declined in the last couple of years.
- 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
- AGR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AGR has about the same amout of shares outstanding than it did 1 year ago.
- The debt/assets ratio for AGR is higher compared to a year ago.
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.
- AGR has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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
- 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.
- AGR's Current ratio of 0.51 is on the low side compared to the rest of the industry. AGR is outperformed by 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.
- Looking at the Quick ratio, with a value of 0.44, AGR is doing worse than 84.44% of the companies in the same industry.
| 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.
- 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
- 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
- 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.
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's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- The Price/Forward Earnings ratio is 14.71, which indicates a correct valuation of AGR.
- 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 24.30, 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
- 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
- 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
- AGR has a Yearly Dividend Yield of 4.89%, which is a nice return.
- 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 1.86, 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.
- 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
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.