AVANGRID INC (AGR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AGR - US05351W1036 - Common Stock
36.02 USD
+0.29 (+0.81%)
35.86 USD
-0.16 (-0.44%)
We assign a fundamental rating of 3 out of 10 to AGR. AGR was compared to 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of AGR while its profitability can be described as average. AGR has a decent growth rate and is not valued too expensively. 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.
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 comparable to the rest of the industry.
AGR has a worse Return On Equity (5.68%) than 80.00% of its industry peers.
AGR has a worse Return On Invested Capital (2.48%) than 82.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGR is below the industry average of 5.00%.
The 3 year average ROIC (1.86%) for AGR is below the current ROIC(2.48%), indicating increased profibility in the last year.
| 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
AGR has a Profit Margin (12.89%) which is in line with its industry peers.
AGR's Profit Margin has been stable in the last couple of years.
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.
Looking at the Gross Margin, with a value of 74.78%, AGR is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGR is destroying value.
Compared to 1 year ago, AGR has about the same amount of shares outstanding.
Compared to 5 years ago, AGR has more shares outstanding
AGR has a worse debt/assets ratio than last year.
2.2 Solvency
AGR has an Altman-Z score of 0.56. This is a bad value and indicates that AGR is not financially healthy and even 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.
AGR has a Debt to Equity ratio of 0.66. This is in the better half of the industry: AGR outperforms 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
A Current Ratio of 0.51 indicates that AGR may have some problems paying its short term obligations.
The Current ratio of AGR (0.51) is worse 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.
AGR has a Quick ratio of 0.44. This is amonst the worse of the industry: AGR underperforms 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.
AGR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.02% yearly.
AGR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
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
The Earnings Per Share is expected to grow by 5.93% on average over the next years.
Based on estimates for the next years, AGR will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
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
With a Price/Earnings ratio of 12.46, AGR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of AGR is on the same level as its industry peers.
AGR is valuated cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.71, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, AGR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
AGR's Enterprise Value to EBITDA ratio is in line with 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
AGR has a Yearly Dividend Yield of 4.89%, which is a nice return.
AGR's Dividend Yield is rather good when compared to the industry average which is at 3.77. AGR pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, 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.
AGR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap13.94B
Revenue(TTM)8.71B
Net Income(TTM)1.12B
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
Graham NumberN/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%
ROICexgc growth 3Y-4.42%
ROICexgc 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%
AVANGRID INC / AGR FAQ
Can you provide the ChartMill fundamental rating for AVANGRID INC?
ChartMill assigns a fundamental rating of 3 / 10 to AGR.
What is the valuation status of AVANGRID INC (AGR) stock?
ChartMill assigns a valuation rating of 3 / 10 to AVANGRID INC (AGR). This can be considered as Overvalued.
What is the profitability of AGR stock?
AVANGRID INC (AGR) has a profitability rating of 4 / 10.
What is the expected EPS growth for AVANGRID INC (AGR) stock?
The Earnings per Share (EPS) of AVANGRID INC (AGR) is expected to grow by 11.56% in the next year.
Is the dividend of AVANGRID INC sustainable?
The dividend rating of AVANGRID INC (AGR) is 7 / 10 and the dividend payout ratio is 60.7%.