AGNC Investment
Market Cap
US$10.5b
Last Updated
2020/02/17 00:31 UTC
Data Sources
Company Financials +
Executive Summary
AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with high growth potential.
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
1.6%
AGNC
1.9%
US Mortgage REITs
1.5%
US Market
1 Year Return
9.8%
AGNC
7.2%
US Mortgage REITs
20.1%
US Market
Return vs Industry: AGNC exceeded the US Mortgage REITs industry which returned 7.2% over the past year.
Return vs Market: AGNC underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| AGNC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 1.9% | 1.5% |
| 30 Day | 6.0% | 4.0% | 1.4% |
| 90 Day | 11.8% | 9.1% | 8.7% |
| 1 Year | 23.2%9.8% | 19.0%7.2% | 22.7%20.1% |
| 3 Year | 39.0%-0.8% | 46.1%5.6% | 50.1%40.5% |
| 5 Year | 58.9%-11.5% | 74.0%-0.1% | 73.1%54.1% |
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
2 weeks ago | Simply Wall St
Is AGNC Investment Corp.'s (NASDAQ:AGNC) CEO Pay Justified?1 month ago | Simply Wall St
What Type Of Shareholder Owns AGNC Investment Corp.'s (NASDAQ:AGNC)?3 months ago | Simply Wall St
Should You Take Comfort From Insider Transactions At AGNC Investment Corp. (NASDAQ:AGNC)?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 ($19.34) is trading below our estimate of fair value ($46.42)
Significantly Below Fair Value: AGNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AGNC is poor value based on its PE Ratio (16.6x) compared to the Mortgage REITs industry average (13.1x).
PE vs Market: AGNC is good value based on its PE Ratio (16.6x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: AGNC is good value based on its PEG Ratio (0.7x)
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 8 analysts?
23.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AGNC's forecast earnings growth (23.7% per year) is above the savings rate (1.7%).
Earnings vs Market: AGNC's earnings (23.7% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AGNC's revenue (25.7% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: AGNC's revenue (25.7% 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 (12.7%).
Next Steps
Past Performance
How has AGNC Investment performed over the past 5 years?
14.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AGNC has high quality earnings.
Growing Profit Margin: AGNC's current net profit margins (81.5%) are higher than last year (40.6%).
Past Earnings Growth Analysis
Earnings Trend: AGNC has become profitable over the past 5 years, growing earnings by 14.3% per year.
Accelerating Growth: AGNC's earnings growth over the past year (575.3%) exceeds its 5-year average (14.3% per year).
Earnings vs Industry: AGNC earnings growth over the past year (575.3%) exceeded the Mortgage REITs industry 7.3%.
Return on Equity
High ROE: AGNC's Return on Equity (6.2%) is considered low.
Return on Assets
Return on Capital Employed
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?
9.93%
Current Dividend Yield
Upcoming Dividend Payment
Purchase AGNC Investment before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AGNC's dividend (9.93%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: AGNC's dividend (9.93%) is in the top 25% of dividend payers in the US market (3.69%)
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: With its high payout ratio (172.2%), AGNC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AGNC's dividends in 3 years are forecast to be covered by earnings (82.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.6yrs
Average management tenure
CEO
Gary Kain (54yo)
3.9yrs
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 above average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Chief Investment Officer & Director | 3.9yrs | US$14.65m | 0.36% $37.8m | |
| President & COO | 1.9yrs | US$4.57m | 0.097% $10.2m | |
| Senior VP & CFO | 1.9yrs | US$1.16m | 0.0029% $300.2k | |
| Senior VP | 3.6yrs | US$1.36m | 0.00018% $18.8k | |
| Executive Vice President of Agency Portfolio Investments | 7.9yrs | US$3.95m | 0.084% $8.8m | |
| Senior Vice President of Non-Agency Portfolio Investments | 0yrs | US$1.91m | no data | |
| Senior VP & CTO | 2.8yrs | no data | no data | |
| Vice President of Investor Relations | 3.6yrs | no data | no data | |
| Senior Vice President of Strategy & Corporate Development | 3.6yrs | no data | no data | |
| Head of Asset & Liability Management and Senior Vice President | 3.6yrs | no data | no data |
3.6yrs
Average Tenure
49yo
Average Age
Experienced Management: AGNC's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Chief Investment Officer & Director | 3.9yrs | US$14.65m | 0.36% $37.8m | |
| Independent Director | 0.4yrs | no data | no data | |
| Independent Director | 1.2yrs | US$8.33k | no data | |
| Independent Director | 0.4yrs | no data | 0.00092% $96.2k | |
| Independent Director | 3.2yrs | US$225.00k | no data | |
| Independent Director | 12.1yrs | US$250.00k | 0.0048% $502.1k | |
| Chairman & Lead Independent Director | 3.8yrs | US$275.00k | 0.0057% $598.4k |
3.2yrs
Average Tenure
60yo
Average Age
Experienced Board: AGNC's board of directors are considered experienced (3.2 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 been diluted in the past year, with total shares outstanding growing by 22.6%.
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$10.461b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AGNC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 2008 |
| 4OQ1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 2008 |
| AGNC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 2008 |
| 0H6E | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 2008 |
| AGNC.N | NasdaqGS (Nasdaq Global Select) | CUM 1/1000 7% C | US | USD | Aug 2017 | |
| AGNC.M | NasdaqGS (Nasdaq Global Select) | 6.875 DEP REP D | US | USD | Feb 2019 | |
| AGNC.O | NasdaqGS (Nasdaq Global Select) | 6.5% DPRP PFD E | US | USD | Sep 2019 | |
| AGNC.P | NasdaqGS (Nasdaq Global Select) | 6.12 DP SH PFD F | US | USD | Feb 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 which the principal and interest payments are guaranteed by government-sponsored enterprise or by the United States government agency. It funds its investments primarily through short-term borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was founded in 2008 and is headquartered in Bethesda, Maryland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:31 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.