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AVANGRID INC (AGR) Stock Fundamental Analysis

USA - NYSE:AGR - US05351W1036 - Common Stock

36.02 USD
+0.29 (+0.81%)
Last: 12/20/2024, 8:04:00 PM
35.86 USD
-0.16 (-0.44%)
After Hours: 12/20/2024, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AGR. AGR was compared to 47 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 is valied quite expensively at the moment, while it does show a decent growth rate. AGR also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

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.
AGR had positive earnings in each of the past 5 years.
In the past 5 years AGR always reported a positive cash flow from operatings.
AGR Yearly Net Income VS EBIT VS OCF VS FCFAGR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B -2B

1.2 Ratios

With a Return On Assets value of 2.40%, AGR perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.68%, AGR is doing worse than 80.00% of the companies in the same industry.
AGR's Return On Invested Capital of 2.48% is on the low side compared to the rest of the industry. AGR is outperformed by 82.22% of its industry peers.
AGR had an Average Return On Invested Capital over the past 3 years of 1.86%. This is below the industry average of 4.90%.
The 3 year average ROIC (1.86%) for AGR is below the current ROIC(2.48%), indicating increased profibility in the last year.
Industry RankSector 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%
AGR Yearly ROA, ROE, ROICAGR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 2 3 4

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.
With a Operating Margin value of 15.07%, AGR is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of AGR has declined.
AGR has a Gross Margin of 74.78%. This is in the better half of the industry: AGR outperforms 73.33% of its industry peers.
In the last couple of years the Gross Margin of AGR has remained more or less at the same level.
Industry RankSector 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%
AGR Yearly Profit, Operating, Gross MarginsAGR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

1

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.
AGR has a worse debt/assets ratio than last year.
AGR Yearly Shares OutstandingAGR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
AGR Yearly Total Debt VS Total AssetsAGR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

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.
The Debt to Equity ratio of AGR (0.66) is better than 64.44% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF N/A
Altman-Z 0.56
ROIC/WACC0.39
WACC6.31%
AGR Yearly LT Debt VS Equity VS FCFAGR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 0.51 indicates that AGR may have some problems paying its short term obligations.
AGR has a Current ratio of 0.51. This is amonst the worse of the industry: AGR underperforms 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 RankSector Rank
Current Ratio 0.51
Quick Ratio 0.44
AGR Yearly Current Assets VS Current LiabilitesAGR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

4

3. Growth

3.1 Past

AGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.39%, which is quite impressive.
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.
AGR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.35%.
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)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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AGR Yearly Revenue VS EstimatesAGR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
AGR Yearly EPS VS EstimatesAGR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.46, AGR is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as AGR.
Compared to an average S&P500 Price/Earnings ratio of 26.89, AGR is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.71, AGR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as AGR.
The average S&P500 Price/Forward Earnings ratio is at 22.99. AGR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.46
Fwd PE 14.71
AGR Price Earnings VS Forward Price EarningsAGR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AGR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.35
AGR Per share dataAGR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

The 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%

7

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 3.23. AGR pays more dividend than 93.33% of the companies in the same industry.
AGR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
Industry RankSector 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
AGR Yearly Dividends per shareAGR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

60.70% of the earnings are spent on dividend by AGR. 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%
AGR Yearly Income VS Free CF VS DividendAGR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B -2B
AGR Dividend Payout.AGR Dividend Payout, showing the Payout Ratio.AGR Dividend Payout.PayoutRetained Earnings

AVANGRID INC

NYSE:AGR (12/20/2024, 8:04:00 PM)

After market: 35.86 -0.16 (-0.44%)

36.02

+0.29 (+0.81%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-22 2024-10-22/amc
Earnings (Next)02-19 2025-02-19/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%.