AVANGRID INC (AGR)
US05351W1036 - Common Stock
We assign a fundamental rating of 3 out of 10 to AGR. AGR was compared to 45 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. Finally AGR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AGR had positive earnings in the past year.
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 has a worse Return On Assets (1.98%) than 73.33% of its industry peers.
The Return On Equity of AGR (4.49%) is worse than 86.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.05%, AGR is doing worse than 91.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AGR is below the industry average of 4.95%.
The 3 year average ROIC (1.86%) for AGR is below the current ROIC(2.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.49% | ||
| ROIC | 2.05% |
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 10.80%, AGR perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
AGR's Profit Margin has been stable in the last couple of years.
The Operating Margin of AGR (12.98%) is worse than 77.78% of its industry peers.
In the last couple of years the Operating Margin of AGR has declined.
With a decent Gross Margin value of 73.66%, 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 | 12.98% | ||
| PM (TTM) | 10.8% | ||
| GM | 73.66% |
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 number of shares outstanding for AGR has been increased compared to 5 years ago.
The debt/assets ratio for AGR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that AGR is in the distress zone and has some risk of bankruptcy.
AGR has a Altman-Z score of 0.59. This is in the lower half of the industry: AGR underperforms 71.11% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that AGR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, AGR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.33
WACC6.29%
2.3 Liquidity
A Current Ratio of 0.58 indicates that AGR may have some problems paying its short term obligations.
AGR has a worse Current ratio (0.58) than 82.22% of its industry peers.
AGR has a Quick Ratio of 0.58. This is a bad value and indicates that AGR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, AGR is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.44% over the past year.
The Earnings Per Share has been decreasing by -1.02% on average over the past years.
AGR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
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)29.44%
EPS 3Y1.14%
EPS 5Y-1.02%
EPS Q2Q%37.5%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y9.55%
Revenue growth 5Y5.11%
Sales Q2Q%-1.99%
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 5.54% on average per year.
AGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.19% yearly.
EPS Next Y7.77%
EPS Next 2Y7.81%
EPS Next 3Y6.46%
EPS Next 5Y5.54%
Revenue Next Year0.79%
Revenue Next 2Y2.52%
Revenue Next 3Y2.14%
Revenue Next 5Y2.19%
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
AGR is valuated correctly with a Price/Earnings ratio of 15.45.
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 (28.05), we can say AGR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.82, the valuation of AGR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.07. AGR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y7.81%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.88%, AGR is a good candidate for dividend investing.
AGR's Dividend Yield is rather good when compared to the industry average which is at 3.98. AGR pays more dividend than 91.11% of the companies in the same industry.
AGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
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 Years7
5.3 Sustainability
AGR pays out 76.35% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AGR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.35%
EPS Next 2Y7.81%
EPS Next 3Y6.46%
AVANGRID INC
NYSE:AGR (5/31/2024, 7:22:20 PM)
After market: 36.01 0 (0%)36.01
+0.16 (+0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 14.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 4.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.98% | ||
| PM (TTM) | 10.8% | ||
| GM | 73.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.44%
EPS 3Y1.14%
EPS 5Y
EPS Q2Q%
EPS Next Y7.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.05%
Revenue growth 3Y9.55%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y