ASX:AGL

Stock Analysis Report

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Executive Summary

AGL Energy Limited provides energy and other services to residential, small and large business, and wholesale customers in Australia. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has AGL Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AGL's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-7.2%

AGL

-3.5%

AU Integrated Utilities

-1.7%

AU Market


1 Year Return

-51.0%

AGL

-11.2%

AU Integrated Utilities

8.7%

AU Market

Return vs Industry: AGL underperformed the Australian Integrated Utilities industry which returned -11.2% over the past year.

Return vs Market: AGL underperformed the Australian Market which returned 8.7% over the past year.


Shareholder returns

AGLIndustryMarket
7 Day-7.2%-3.5%-1.7%
30 Day-19.5%-5.1%-1.6%
90 Day-31.7%-7.9%2.8%
1 Year-47.2%-51.0%-7.9%-11.2%12.3%8.7%
3 Year-47.4%-56.4%19.9%6.1%28.5%13.0%
5 Year-32.4%-48.4%31.4%6.2%61.9%30.4%

Long-Term Price Volatility Vs. Market

How volatile is AGL Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AGL Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGL (A$9.37) is trading below our estimate of fair value (A$19.28)

Significantly Below Fair Value: AGL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AGL is unprofitable, so we can't compare its PE Ratio to the XX Integrated Utilities industry average.

PE vs Market: AGL is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGL is good value based on its PB Ratio (1.1x) compared to the XX Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

How is AGL Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AGL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AGL's is expected to become profitable in the next 3 years.

Revenue vs Market: AGL's revenue (0.1% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: AGL's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGL's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has AGL Energy performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGL is currently unprofitable.

Growing Profit Margin: AGL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGL is unprofitable, but has reduced losses over the past 5 years at a rate of 11.8% per year.

Accelerating Growth: Unable to compare AGL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AGL is unprofitable, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (3.1%).


Return on Equity

High ROE: AGL has a negative Return on Equity (-29.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is AGL Energy's financial position?


Financial Position Analysis

Short Term Liabilities: AGL's short term assets (A$3.4B) exceed its short term liabilities (A$3.1B).

Long Term Liabilities: AGL's short term assets (A$3.4B) do not cover its long term liabilities (A$6.8B).


Debt to Equity History and Analysis

Debt Level: AGL's debt to equity ratio (52.6%) is considered high.

Reducing Debt: AGL's debt to equity ratio has increased from 38.2% to 52.6% over the past 5 years.

Debt Coverage: AGL's debt is well covered by operating cash flow (56.6%).

Interest Coverage: AGL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is AGL Energy current dividend yield, its reliability and sustainability?

8.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGL's dividend (8.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.07%).

High Dividend: AGL's dividend (8.75%) is in the top 25% of dividend payers in the Australian market (5.27%)


Stability and Growth of Payments

Stable Dividend: AGL's dividend payments have been volatile in the past 10 years.

Growing Dividend: AGL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: AGL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AGL's dividends in 3 years are not forecast to be well covered by earnings (91.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Brett Redman (50 yo)

2.5yrs

Tenure

AU$3,898,363

Compensation

Mr. Brett Redman, BCom, FCA, GAICD has been Chief Executive Officer and Managing Director of AGL Energy Limited since January 1, 2019 and also serves as its Director. He was an Interim Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD3.01M) is above average for companies of similar size in the Australian market ($USD1.84M).

Compensation vs Earnings: Brett's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Brett Redman
MD, CEO & Director2.5yrsAU$3.90m0.021%
A$ 1.2m
Damien Nicks
Chief Financial Officer2.5yrsAU$1.48m0.00065%
A$ 37.9k
Markus Brokhof
Chief Operating Officer0.83yrAU$1.05mno data
Christine Corbett
Chief Customer Officer1.58yrsAU$1.52mno data
Simon Moorfield
Executive General Manager of Information Systems & Technology3.58yrsno datano data
Chantal Travers
Head of Investor Relationsno datano datano data
John Fitzgerald
General Counsel & Company Secretary13.17yrsno datano data
Kellie Benda
General Manager of Salesno datano datano data
Joao Segorbe
Executive General Strategy & Corporate Developmentno datano datano data
Joanne Fox
Executive General Manager of People & Cultureno datano datano data
Andrew Scannell
Head of Mediano datano datano data
Mike Duffy
Head of Mediano datano datano data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: AGL's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brett Redman
MD, CEO & Director2.5yrsAU$3.90m0.021%
A$ 1.2m
Mark Bloom
Non-Executive Director0.58yrno data0.0011%
A$ 65.4k
John Stanhope
Independent Non-Executive Director11.92yrsAU$274.65k0.0024%
A$ 140.7k
Peter Botten
Independent Non-Executive Director4.33yrsAU$241.00k0.0018%
A$ 106.8k
Graeme Hunt
Non-Executive Independent Chairman3.42yrsAU$597.00k0.0020%
A$ 117.3k
Diane Smith-Gander
Independent Non-Executive Director4.42yrsAU$264.45k0.0018%
A$ 102.7k
Jacqueline Hey
Independent Non-Executive Director4.92yrsAU$270.80k0.0018%
A$ 106.2k
Patricia McKenzie
Independent Non-Executive Director1.75yrsAU$247.35k0.0014%
A$ 79.4k

4.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AGL's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AGL Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AGL Energy Limited
  • Ticker: AGL
  • Exchange: ASX
  • Founded: 1837
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: AU$5.838b
  • Shares outstanding: 623.03m
  • Website: https://www.agl.com.au

Number of Employees


Location

  • AGL Energy Limited
  • 200 George Street
  • Level 24
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2006
AGLN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2006
N9Z1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
AGLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2006
AGLX.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDJun 2008

Biography

AGL Energy Limited provides energy and other services to residential, small and large business, and wholesale customers in Australia. It operates in four segments: Wholesale Markets, Customer Markets, Grou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 07:32
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.