NasdaqGS:AGNC

Stock Analysis Report

Executive Summary

AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States.

Snowflake

Fundamentals

Fair value with limited growth.


Similar Companies

Share Price & News

How has AGNC Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

AGNC

1.9%

US Mortgage REITs

0.07%

US Market


1 Year Return

-7.1%

AGNC

-1.3%

US Mortgage REITs

8.9%

US Market

Return vs Industry: AGNC underperformed the US Mortgage REITs industry which returned -1.3% over the past year.

Return vs Market: AGNC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

AGNCIndustryMarket
7 Day2.7%1.9%0.07%
30 Day4.4%0.6%-0.3%
90 Day-3.6%-0.1%-1.6%
1 Year4.7%-7.1%9.9%-1.3%11.3%8.9%
3 Year17.3%-15.6%38.4%-0.08%46.3%36.8%
5 Year31.8%-26.0%57.3%-9.5%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AGNC Investment 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: AGNC ($16.78) is trading below our estimate of fair value ($33.76)

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


Price To Earnings Ratio

PE vs Industry: AGNC is unprofitable, so we can't compare its PE Ratio to the Mortgage REITs industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AGNC is good value based on its PB Ratio (1x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is AGNC Investment forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGNC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AGNC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AGNC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AGNC's revenue (54.5% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AGNC's revenue (54.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGNC's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has AGNC Investment performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AGNC is unprofitable, but has reduced losses over the past 5 years at a rate of 34.2% per year.

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

Earnings vs Industry: AGNC is unprofitable, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (5.2%).


Return on Equity

High ROE: AGNC has a negative Return on Equity (-7.41%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AGNC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AGNC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is AGNC Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AGNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: AGNC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: AGNC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if AGNC has a sufficient allowance for bad loans.

Low Risk Liabilities: AGNC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AGNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AGNC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AGNC has an appropriate level of bad loans.


Next Steps

Dividend

What is AGNC Investment's current dividend yield, its reliability and sustainability?

11.44%

Current Dividend Yield


Upcoming Dividend Payment

Purchase AGNC Investment before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company11.4%marketbottom25%1.4%markettop25%3.7%industryaverage10.2%forecastin3Years11.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AGNC's dividend (11.44%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AGNC's dividend (11.44%) is in the top 25% of dividend payers in the US market (3.68%)

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

Growing Dividend: AGNC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: AGNC's dividends in 3 years are not forecast to be well covered by earnings (93% payout ratio).


Next Steps

Management

What is the CEO of AGNC Investment's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Gary Kain (54yo)

3.6yrs

Tenure

US$14,645,850

Compensation

Mr. Gary D. Kain served as the Chief Executive Officer and Director of MTGE Investment Corp. since March 17, 2016 until May 2, 2018 and its Chief Investment Officer since March 2011 until May 2, 2018. Mr.  ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD14.65M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

Experienced Management: AGNC's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: AGNC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$1,747,52829 May 19
Gary Kain
EntityIndividual
Role
Chief Executive Officer
CEO, Chief Investment Officer & Director
Shares103,202
Max PriceUS$17.01
SellUS$206,97429 Apr 19
Morris Davis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,537
Max PriceUS$17.94
BuyUS$70,94801 Nov 18
Larry Harvey
EntityIndividual
Shares4,000
Max PriceUS$17.74

Ownership Breakdown


Management Team

  • Peter Federico (53yo)

    President & COO

    • Tenure: 1.6yrs
    • Compensation: US$4.57m
  • Sean Reid

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 3.3yrs
  • Jason Campbell

    Head of Asset & Liability Management and Senior Vice President

    • Tenure: 3.3yrs
  • Gary Kain (54yo)

    CEO, Chief Investment Officer & Director

    • Tenure: 3.6yrs
    • Compensation: US$14.65m
  • Christopher Kuehl (45yo)

    Executive Vice President of Agency Portfolio Investments

    • Tenure: 7.6yrs
    • Compensation: US$3.95m
  • Bernie Bell (47yo)

    Senior VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$1.16m
  • Aaron Pas (38yo)

    Senior Vice President of Non-Agency Portfolio Investments

    • Tenure: 0yrs
    • Compensation: US$1.91m
  • Kenneth Pollack (51yo)

    Senior VP

    • Tenure: 3.3yrs
    • Compensation: US$1.36m
  • Katie Wisecarver

    Vice President of Investor Relations

    • Tenure: 3.3yrs
  • Chris Erhorn

    Senior VP & CTO

    • Tenure: 2.5yrs

Board Members

  • John Fisk (62yo)

    Independent Director

    • Tenure: 0.08yrs
  • Donna Blank (58yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$8.33k
  • Frances Spark (60yo)

    Independent Director

    • Tenure: 0.08yrs
  • Paul Mullings (68yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$225.00k
  • Morris Davis (47yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$250.00k
  • Gary Kain (54yo)

    CEO, Chief Investment Officer & Director

    • Tenure: 3.6yrs
    • Compensation: US$14.65m
  • Prue Larocca (67yo)

    Chairman & Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$275.00k

Company Information

AGNC Investment Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AGNC Investment Corp.
  • Ticker: AGNC
  • Exchange: NasdaqGS
  • Founded: 2008
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Market Cap: US$9.077b
  • Shares outstanding: 540.92m
  • Website: https://www.agnc.com

Number of Employees


Location

  • AGNC Investment Corp.
  • 2 Bethesda Metro Center
  • 12th Floor
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGNCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2008
4OQ1DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2008
AGNC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 2008
0H6ELSE (London Stock Exchange)YesCommon StockGBUSDMay 2008
AGNC.BNasdaqGS (Nasdaq Global Select)DEP SHS 1/1000USUSDMay 2014
AGNC.NNasdaqGS (Nasdaq Global Select)CUM 1/1000 7% CUSUSDAug 2017
AGNC.MNasdaqGS (Nasdaq Global Select)6.875 DEP REP DUSUSDFeb 2019
AGNC.ONasdaqGS (Nasdaq Global Select)6.5% DPRP PFD EUSUSDSep 2019

Biography

AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:12
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.