NasdaqGS:AGNC

Stock Analysis Report

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Market Cap

US$8.5b

Last Updated

2021/07/28 02:08 UTC

Data Sources

Company Financials +

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

-0.4%

AGNC

0.2%

US Mortgage REITs

0.9%

US Market


1 Year Return

19.2%

AGNC

36.2%

US Mortgage REITs

37.8%

US Market

Return vs Industry: AGNC underperformed the US Mortgage REITs industry which returned 36.2% over the past year.


Shareholder returns

AGNCIndustryMarket
7 Day-0.4%0.2%0.9%
30 Day-6.0%-6.4%0.3%
90 Day-9.9%-3.4%2.1%
1 Year30.7%19.2%49.0%36.2%40.0%37.8%
3 Year14.0%-16.9%4.7%-22.7%63.8%53.5%
5 Year41.6%-17.0%40.3%-17.1%124.6%99.7%

Long-Term 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?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGNC ($16.18) is trading below our estimate of fair value ($21.74)

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


Price To Earnings Ratio

PE vs Industry: AGNC is good value based on its PE Ratio (2.9x) compared to the US Mortgage REITs industry average (7.9x).

PE vs Market: AGNC is good value based on its PE Ratio (2.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AGNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AGNC's PB Ratio (0.9x) is in line with the US Mortgage REITs industry average.


Future Growth

How is AGNC Investment forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGNC's earnings are forecast to decline over the next 3 years (-26.4% per year).

Earnings vs Market: AGNC's earnings are forecast to decline over the next 3 years (-26.4% per year).

Revenue vs Market: AGNC's revenue is expected to decline over the next 3 years (-31.5% per year).

High Growth Revenue: AGNC's revenue is forecast to decline over the next 3 years (-31.5% 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 (12.4%).


Past Performance

How has AGNC Investment performed over the past 5 years?

-10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGNC has high quality earnings.

Growing Profit Margin: AGNC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AGNC has become profitable over the past 5 years, growing earnings by -10% per year.

Accelerating Growth: AGNC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AGNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Mortgage REITs industry (53.6%).


Return on Equity

High ROE: Whilst AGNC's Return on Equity (27.54%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is AGNC Investment's financial position?


Financial Position Analysis

Short Term Liabilities: AGNC's short term assets ($19.3B) do not cover its short term liabilities ($73.4B).

Long Term Liabilities: AGNC's short term assets ($19.3B) exceed its long term liabilities ($790.0M).


Debt to Equity History and Analysis

Debt Level: AGNC's debt to equity ratio (491.1%) is considered high.

Reducing Debt: AGNC's debt to equity ratio has reduced from 659.1% to 491.1% over the past 5 years.

Debt Coverage: AGNC's debt is not well covered by operating cash flow (3.3%).

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


Balance Sheet


Dividend

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

8.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGNC's dividend (8.9%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: AGNC's dividend (8.9%) is in the top 25% of dividend payers in the US market (3.53%)


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 reasonably low payout ratio (26%), AGNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGNC's dividends in 3 years are forecast to be covered by earnings (60.5% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Peter Federico (55 yo)

no data

Tenure

US$5,486,900

Compensation

Mr. Peter J. Federico is Chief Executive Officer and Director at AGNC Investment Corp. since July 1, 2021 and serves as its President since March 31, 2018. He had been Chief Operating Officer of AGNC Inves...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD5.49M) is about average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team


Board Members

Experienced Board: AGNC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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$8.493b
  • Shares outstanding: 524.91m
  • Website: https://www.agnc.com

Number of Employees


Location

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

Listings


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 Analysis2021/07/28 02:08
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.