AGNC INVESTMENT CORP (AGNC) Stock Fundamental Analysis
NASDAQ:AGNC - Nasdaq - US00123Q1040 - REIT - Currency: USD
AGNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. There are concerns on the financial health of AGNC while its profitability can be described as average. AGNC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AGNC had positive earnings in the past year.
In the past year AGNC had a positive cash flow from operations.
In multiple years AGNC reported negative net income over the last 5 years.
Of the past 5 years AGNC 4 years had a positive operating cash flow.
1.2 Ratios
AGNC has a Return On Assets (0.35%) which is in line with its industry peers.
AGNC has a Return On Equity (3.33%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 0.40%, AGNC is in line with its industry, outperforming 55.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 3.33% | ||
| ROIC | 0.4% |
ROA(3y)-0.54%
ROA(5y)-0.22%
ROE(3y)-2.86%
ROE(5y)-1.11%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.46%, AGNC is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
In the last couple of years the Profit Margin of AGNC has declined.
AGNC's Operating Margin of 13.31% is fine compared to the rest of the industry. AGNC outperforms 67.69% of its industry peers.
In the last couple of years the Operating Margin of AGNC has remained more or less at the same level.
AGNC's Gross Margin of 16.54% is in line compared to the rest of the industry. AGNC outperforms 44.62% of its industry peers.
In the last couple of years the Gross Margin of AGNC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.31% | ||
| PM (TTM) | 9.46% | ||
| GM | 16.54% |
OM growth 3Y-35.43%
OM growth 5Y-1.27%
PM growth 3Y-35.92%
PM growth 5Y-2.73%
GM growth 3Y-35.24%
GM growth 5Y-1.15%
2. Health
2.1 Basic Checks
AGNC has more shares outstanding than it did 1 year ago.
AGNC has more shares outstanding than it did 5 years ago.
AGNC has a worse debt/assets ratio than last year.
2.2 Solvency
AGNC has an Altman-Z score of -1.07. This is a bad value and indicates that AGNC is not financially healthy and even has some risk of bankruptcy.
AGNC has a Altman-Z score of -1.07. This is amonst the worse of the industry: AGNC underperforms 95.38% of its industry peers.
The Debt to FCF ratio of AGNC is 323.18, which is on the high side as it means it would take AGNC, 323.18 years of fcf income to pay off all of its debts.
AGNC has a Debt to FCF ratio of 323.18. This is in the lower half of the industry: AGNC underperforms 64.62% of its industry peers.
A Debt/Equity ratio of 8.30 is on the high side and indicates that AGNC has dependencies on debt financing.
AGNC has a Debt to Equity ratio of 8.30. This is in the lower half of the industry: AGNC underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.3 | ||
| Debt/FCF | 323.18 | ||
| Altman-Z | -1.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.02 indicates that AGNC may have some problems paying its short term obligations.
With a Current ratio value of 0.02, AGNC is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
A Quick Ratio of 0.02 indicates that AGNC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.02, AGNC is doing worse than 87.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 |
3. Growth
3.1 Past
The earnings per share for AGNC have decreased strongly by -29.20% in the last year.
The Earnings Per Share has been decreasing by -2.52% on average over the past years.
AGNC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.15%.
AGNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.98% yearly.
EPS 1Y (TTM)-29.2%
EPS 3Y-14.16%
EPS 5Y-2.52%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y62.37%
Revenue growth 5Y5.98%
Sales Q2Q%630%
3.2 Future
AGNC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.57% yearly.
AGNC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 201.74% yearly.
EPS Next Y-11.35%
EPS Next 2Y-6.96%
EPS Next 3Y-5.57%
EPS Next 5YN/A
Revenue Next Year1983.49%
Revenue Next 2Y404.58%
Revenue Next 3Y201.74%
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AGNC is valuated cheaply with a Price/Earnings ratio of 5.15.
Based on the Price/Earnings ratio, AGNC is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.55, AGNC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.52, the valuation of AGNC can be described as very cheap.
Based on the Price/Forward Earnings ratio, AGNC is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AGNC to the average of the S&P500 Index (22.30), we can say AGNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 5.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGNC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as AGNC's earnings are expected to decrease with -5.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.96%
EPS Next 3Y-5.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.93%, AGNC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.73, AGNC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, AGNC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.93% |
5.2 History
The dividend of AGNC decreases each year by -5.92%.
AGNC has been paying a dividend for at least 10 years, so it has a reliable track record.
AGNC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.92%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
AGNC pays out 395.81% of its income as dividend. This is not a sustainable payout ratio.
AGNC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP395.81%
EPS Next 2Y-6.96%
EPS Next 3Y-5.57%
9.12
+0.08 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners41.92%
Inst Owner Change14.6%
Ins Owners0.48%
Ins Owner Change8.78%
Market Cap9.31B
Analysts78.1
Price Target9.73 (6.69%)
Short Float %5.26%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.93% |
Yearly Dividend1.56
Dividend Growth(5Y)-5.92%
DP395.81%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.53%
Min EPS beat(2)-14.53%
Max EPS beat(2)7.47%
EPS beat(4)1
Avg EPS beat(4)-6.68%
Min EPS beat(4)-15.95%
Max EPS beat(4)7.47%
EPS beat(8)3
Avg EPS beat(8)-2.58%
EPS beat(12)7
Avg EPS beat(12)4.43%
EPS beat(16)11
Avg EPS beat(16)6.38%
Revenue beat(2)0
Avg Revenue beat(2)-49.72%
Min Revenue beat(2)-52.02%
Max Revenue beat(2)-47.42%
Revenue beat(4)0
Avg Revenue beat(4)-84.58%
Min Revenue beat(4)-133.13%
Max Revenue beat(4)-47.42%
Revenue beat(8)0
Avg Revenue beat(8)-97.85%
Revenue beat(12)1
Avg Revenue beat(12)-90.88%
Revenue beat(16)1
Avg Revenue beat(16)-106.22%
PT rev (1m)-0.71%
PT rev (3m)-7.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.8%
EPS NY rev (1m)2.7%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 5.52 | ||
| P/S | 2.64 | ||
| P/FCF | 36.07 | ||
| P/OCF | 36.07 | ||
| P/B | 0.93 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.77
EY19.41%
EPS(NY)1.65
Fwd EY18.13%
FCF(TTM)0.25
FCFY2.77%
OCF(TTM)0.25
OCFY2.77%
SpS3.46
BVpS9.84
TBVpS9.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 3.33% | ||
| ROCE | 4.62% | ||
| ROIC | 0.4% | ||
| ROICexc | 0.4% | ||
| ROICexgc | 0.4% | ||
| OM | 13.31% | ||
| PM (TTM) | 9.46% | ||
| GM | 16.54% | ||
| FCFM | 7.31% |
ROA(3y)-0.54%
ROA(5y)-0.22%
ROE(3y)-2.86%
ROE(5y)-1.11%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-4.26%
ROICexcg growth 5Y9.59%
ROICexc growth 3Y-4.07%
ROICexc growth 5Y9.52%
OM growth 3Y-35.43%
OM growth 5Y-1.27%
PM growth 3Y-35.92%
PM growth 5Y-2.73%
GM growth 3Y-35.24%
GM growth 5Y-1.15%
F-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.3 | ||
| Debt/FCF | 323.18 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 77.25% | ||
| Current Ratio | 0.02 | ||
| Quick Ratio | 0.02 | ||
| Altman-Z | -1.07 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.2%
EPS 3Y-14.16%
EPS 5Y-2.52%
EPS Q2Q%-24.14%
EPS Next Y-11.35%
EPS Next 2Y-6.96%
EPS Next 3Y-5.57%
EPS Next 5YN/A
Revenue 1Y (TTM)5.15%
Revenue growth 3Y62.37%
Revenue growth 5Y5.98%
Sales Q2Q%630%
Revenue Next Year1983.49%
Revenue Next 2Y404.58%
Revenue Next 3Y201.74%
Revenue Next 5YN/A
EBIT growth 1Y-37.25%
EBIT growth 3Y4.84%
EBIT growth 5Y4.64%
EBIT Next Year33.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.38%
FCF growth 3Y-61.78%
FCF growth 5Y-40.77%
OCF growth 1Y-61.38%
OCF growth 3Y-61.78%
OCF growth 5Y-40.77%