AVANGRID INC (AGR) Stock Fundamental Analysis
NYSE:AGR - New York Stock Exchange, Inc. - US05351W1036 - Common Stock - Currency: USD
Taking everything into account, AGR scores 3 out of 10 in our fundamental rating. AGR was compared to 47 industry peers in the Electric Utilities industry. AGR has a medium profitability rating, but doesn't score so well on its financial health evaluation. AGR has a correct valuation and a medium growth rate. 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.
Each year in the past 5 years AGR has been profitable.
Each year in the past 5 years AGR had a positive operating cash flow.
1.2 Ratios
AGR has a Return On Assets (2.40%) which is in line with its industry peers.
The Return On Equity of AGR (5.68%) is worse than 80.00% of its industry peers.
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.
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.
Looking at the Operating Margin, with a value of 15.07%, AGR is doing worse than 75.56% of the companies in the same industry.
In the last couple of years the Operating Margin of AGR has declined.
The Gross Margin of AGR (74.78%) is better than 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.
Compared to 1 year ago, AGR has about the same amount of shares outstanding.
The number of shares outstanding for AGR has been increased compared to 5 years ago.
Compared to 1 year ago, AGR has a worse debt to assets ratio.
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.
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.
With a decent Debt to Equity ratio value of 0.66, AGR is doing good in the industry, outperforming 64.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.39
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.51 indicates that AGR may have some problems paying its short term obligations.
With a Current ratio value of 0.51, AGR is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
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.
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
The Earnings Per Share has grown by an impressive 91.39% over the past year.
Measured over the past years, AGR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.02% on average per year.
Looking at the last year, AGR shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
AGR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
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
The Earnings Per Share is expected to grow by 5.93% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 (26.48), we can say AGR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of AGR can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as AGR.
AGR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| 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
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
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 3.61. AGR pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 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.
The dividend of AGR is growing, but earnings are growing more, so the dividend growth is 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 Change-0.02%
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%