AVANGRID INC (AGR) Stock Fundamental Analysis
NYSE:AGR - New York Stock Exchange, Inc. - US05351W1036 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AGR. AGR was compared to 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. While showing a medium growth rate, AGR is valued expensive at the moment. 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.
AGR had positive earnings in each of the past 5 years.
In the past 5 years AGR always reported a positive cash flow from operatings.
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.
The Return On Equity of AGR (5.68%) is worse than 80.00% of its industry peers.
AGR has a Return On Invested Capital of 2.48%. This is amonst the worse of the industry: AGR underperforms 82.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGR is significantly below the industry average of 38.54%.
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.
AGR has a worse Operating Margin (15.07%) than 75.56% of its industry peers.
In the last couple of years the Operating Margin of AGR has declined.
With a decent Gross Margin value of 74.78%, AGR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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.
AGR has about the same amout of shares outstanding than it did 1 year ago.
AGR has more shares outstanding than it did 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.
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.
AGR has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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
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 has a worse Current ratio (0.51) than 88.89% of its industry peers.
A Quick Ratio of 0.44 indicates that AGR may have some problems paying its short term obligations.
The Quick ratio of AGR (0.44) is worse than 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.
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.
The Revenue has been growing slightly by 5.11% on average over the past years.
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
Based on estimates for the next years, AGR will show a small growth in Earnings Per Share. The EPS will grow by 5.93% on average per year.
The Revenue is expected to grow by 2.85% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 12.46, the valuation of AGR can be described as correct.
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 (27.30), 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 is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AGR is valued slightly cheaper when compared to this.
| 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%
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 3.64. 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 2.35.
| 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
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
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
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%
ROICexcg growth 3Y-4.42%
ROICexcg 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%