NasdaqGS:AGNC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential second-rate dividend payer.


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

Stable Share Price: AGNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

AGNC

-3.1%

US Mortgage REITs

-4.6%

US Market


1 Year Return

-14.9%

AGNC

-40.3%

US Mortgage REITs

11.5%

US Market

Return vs Industry: AGNC exceeded the US Mortgage REITs industry which returned -40.3% over the past year.

Return vs Market: AGNC underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

AGNCIndustryMarket
7 Day1.2%-3.1%-4.6%
30 Day-1.7%-3.6%-0.9%
90 Day3.0%-3.0%2.2%
1 Year-5.8%-14.9%-33.7%-40.3%14.0%11.5%
3 Year-3.0%-30.5%-21.1%-42.5%34.5%25.6%
5 Year37.0%-22.2%14.9%-33.7%73.0%53.6%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGNC ($14.03) is trading below our estimate of fair value ($15.2)

Significantly Below Fair Value: AGNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AGNC is unprofitable, so we can't compare its PE Ratio to the US 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's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.


Next Steps

Future Growth

How is AGNC Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

123.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGNC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: AGNC's revenue (91.3% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: AGNC's revenue (91.3% 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 (11.3%).


Next Steps

Past Performance

How has AGNC Investment performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGNC is currently unprofitable.

Growing Profit Margin: AGNC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGNC is unprofitable, and losses have increased over the past 5 years at a rate of 19.9% 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 (-36.7%).


Return on Equity

High ROE: AGNC has a negative Return on Equity (-1.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is AGNC Investment's financial position?


Financial Position Analysis

Short Term Liabilities: AGNC's short term assets ($11.2B) do not cover its short term liabilities ($68.8B).

Long Term Liabilities: AGNC's short term assets ($11.2B) exceed its long term liabilities ($458.0M).


Debt to Equity History and Analysis

Debt Level: AGNC's debt to equity ratio (510.9%) is considered high.

Reducing Debt: AGNC's debt to equity ratio has reduced from 561.9% to 510.9% over the past 5 years.

Debt Coverage: AGNC's debt is not well covered by operating cash flow (2.5%).

Interest Coverage: Insufficient data to determine if AGNC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

10.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGNC's dividend (10.26%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: AGNC's dividend (10.26%) is in the top 25% of dividend payers in the US market (4.86%)


Stability and Growth of Payments

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 forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Gary Kain (55 yo)

4.58yrs

Tenure

US$16,130,400

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 ($USD16.13M) is above average for companies of similar size in the US market ($USD7.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Kain
CEO, Chief Investment Officer & Director4.58yrsUS$16.13m0.41%
$ 31.5m
Peter Federico
President & COO2.58yrsUS$5.06m0.10%
$ 7.6m
Bernice Bell
Senior VP & CFO2.58yrsUS$1.85m0.0012%
$ 89.5k
Christopher Kuehl
Executive Vice President of Agency Portfolio Investments8.58yrsUS$4.30m0.085%
$ 6.5m
Aaron Pas
Senior Vice President of Non-Agency Portfolio Investmentsno dataUS$1.94mno data
Christopher Erhorn
Senior VP & CTO3.5yrsno datano data
Katie Wisecarver
Vice President of Investor Relations4.25yrsno datano data
Kenneth Pollack
Senior VP4.25yrsUS$1.36m0.0013%
$ 100.2k
Sean Reid
Senior Vice President of Strategy & Corporate Development4.25yrsno datano data
Jason Campbell
Head of Asset & Liability Management and Senior Vice President4.25yrsno datano data
Amie Wright
Senior Vice President of Internal Audit4.25yrsno datano data
Scott Bost
Vice President and Controller2.58yrsno datano data

4.3yrs

Average Tenure

50yo

Average Age

Experienced Management: AGNC's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Kain
CEO, Chief Investment Officer & Director4.58yrsUS$16.13m0.41%
$ 31.5m
John Fisk
Independent Director1.08yrsUS$30.28k0.0046%
$ 354.2k
Donna Blank
Independent Director1.83yrsUS$241.67k0.0014%
$ 107.1k
Frances Spark
Independent Director1.08yrsUS$30.28k0.00090%
$ 68.8k
Paul Mullings
Independent Director3.83yrsUS$225.00k0.0044%
$ 340.4k
Morris Davis
Independent Director12.75yrsUS$250.00k0.0056%
$ 431.4k
Prue Larocca
Chairman & Lead Independent Director4.42yrsUS$275.00k0.0090%
$ 691.5k

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: AGNC's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AGNC insiders have only sold shares 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

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$7.649b
  • Shares outstanding: 545.20m
  • 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.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% DP SH PFD EUSUSDSep 2019
AGNC.PNasdaqGS (Nasdaq Global Select)6.12 DP SH PFD FUSUSDFeb 2020

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 Analysis2020/10/28 23:44
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.