ASSURED GUARANTY LTD (AGO)

BMG0585R1060 - Common Stock

87.25  -0.1 (-0.11%)

After market: 87.25 0 (0%)

Fundamental Rating

4

Overall AGO gets a fundamental rating of 4 out of 10. We evaluated AGO against 140 industry peers in the Insurance industry. There are concerns on the financial health of AGO while its profitability can be described as average. AGO is not valued too expensively and it also shows a decent growth rate.



5

1. Profitability

1.1 Basic Checks

AGO had positive earnings in the past year.
In the past year AGO had a positive cash flow from operations.
Each year in the past 5 years AGO has been profitable.
In the past 5 years AGO reported 4 times negative operating cash flow.

1.2 Ratios

AGO has a Return On Assets of 5.89%. This is amongst the best in the industry. AGO outperforms 87.77% of its industry peers.
AGO has a better Return On Equity (12.94%) than 61.15% of its industry peers.
Industry RankSector Rank
ROA 5.89%
ROE 12.94%
ROIC N/A
ROA(3y)2.92%
ROA(5y)2.79%
ROE(3y)7.19%
ROE(5y)6.61%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

With an excellent Profit Margin value of 76.90%, AGO belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
AGO's Profit Margin has improved in the last couple of years.
AGO has a better Operating Margin (38.61%) than 94.24% of its industry peers.
In the last couple of years the Operating Margin of AGO has declined.
Industry RankSector Rank
OM 38.61%
PM (TTM) 76.9%
GM N/A
OM growth 3Y-3.05%
OM growth 5Y-10.96%
PM growth 3Y27.06%
PM growth 5Y9.34%
GM growth 3YN/A
GM growth 5YN/A

2

2. Health

2.1 Basic Checks

AGO has less shares outstanding than it did 1 year ago.
AGO has less shares outstanding than it did 5 years ago.
AGO has a worse debt/assets ratio than last year.

2.2 Solvency

AGO has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as AGO would need 3.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.67, AGO is doing worse than 61.87% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that AGO is not too dependend on debt financing.
AGO has a Debt to Equity ratio of 0.30. This is in the better half of the industry: AGO outperforms 64.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.67
Altman-Z N/A
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 163.68% over the past year.
The Earnings Per Share has been growing by 20.26% on average over the past years. This is a very strong growth
AGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.73%.
Measured over the past years, AGO shows a decrease in Revenue. The Revenue has been decreasing by -1.89% on average per year.
EPS 1Y (TTM)163.68%
EPS 3Y53.86%
EPS 5Y20.26%
EPS growth Q2Q2513.64%
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-0.07%
Revenue growth 5Y-1.89%
Revenue growth Q2Q21.32%

3.2 Future

AGO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.72% yearly.
The Revenue is expected to grow by 28.82% on average over the next years. This is a very strong growth
EPS Next Y-46.71%
EPS Next 2Y-21.08%
EPS Next 3Y-8.08%
EPS Next 5Y-5.72%
Revenue Next Year118.83%
Revenue Next 2Y50.47%
Revenue Next 3Y37.27%
Revenue Next 5Y28.82%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

AGO is valuated reasonably with a Price/Earnings ratio of 8.01.
Based on the Price/Earnings ratio, AGO is valued a bit cheaper than the industry average as 69.78% of the companies are valued more expensively.
AGO is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.03, which indicates a correct valuation of AGO.
The rest of the industry has a similar Price/Forward Earnings ratio as AGO.
When comparing the Price/Forward Earnings ratio of AGO to the average of the S&P500 Index (22.79), we can say AGO is valued slightly cheaper.
Industry RankSector Rank
PE 8.01
Fwd PE 15.03

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 10.5
EV/EBITDA N/A

4.3 Compensation for Growth

A cheap valuation may be justified as AGO's earnings are expected to decrease with -8.08% in the coming years.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-21.08%
EPS Next 3Y-8.08%

5

5. Dividend

5.1 Amount

AGO has a Yearly Dividend Yield of 1.35%.
Compared to an average industry Dividend Yield of 4.13, AGO has a dividend in line with its industry peers.
With a Dividend Yield of 1.35, AGO pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

The dividend of AGO is nicely growing with an annual growth rate of 12.50%!
AGO has been paying a dividend for at least 10 years, so it has a reliable track record.
AGO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.5%
Div Incr Years12
Div Non Decr Years19

5.3 Sustainability

9.07% of the earnings are spent on dividend by AGO. This is a low number and sustainable payout ratio.
DP9.07%
EPS Next 2Y-21.08%
EPS Next 3Y-8.08%

ASSURED GUARANTY LTD

NYSE:AGO (3/28/2024, 8:04:00 PM)

After market: 87.25 0 (0%)

87.25

-0.1 (-0.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.84B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
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)
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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 RankSector Rank
PE 8.01
Fwd PE 15.03
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)N/A
PEG (5Y)0.4
Profitability
Industry RankSector Rank
ROA 5.89%
ROE 12.94%
ROCE
ROIC
ROICexc
ROICexgc
OM 38.61%
PM (TTM) 76.9%
GM N/A
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 Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
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)
Growth
EPS 1Y (TTM)163.68%
EPS 3Y53.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y-46.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)44.73%
Revenue growth 3Y-0.07%
Revenue growth 5Y
Revenue growth 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