AGNC Stock Overview
AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States.
AGNC Investment Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$11.60|
|52 Week High||US$17.33|
|52 Week Low||US$9.99|
|1 Month Change||-2.36%|
|3 Month Change||-12.59%|
|1 Year Change||-32.64%|
|3 Year Change||-31.03%|
|5 Year Change||-45.51%|
|Change since IPO||-40.05%|
Recent News & Updates
AGNC: The Mortgage-Backed-Securities Market Is Freezing On Market Volatility
Mortgage REITs with significant exposure to mortgage-backed securities have seen big declines this year as mortgage spreads skyrocket. AGNC Investment Corp. has declined by 40% since I published my bearish thesis on the stock last year. Last year, I believed the end of the Fed's MBS purchase program would cause spreads to widen and AGNC's book value to collapse; this has now played out. Based on current NAV estimates, AGNC is trading very close to its current book value. However, higher rates are causing its volatility to get out of control. Potential Issues in the housing market, and specifically in 140X levered Fannie Mae and Freddie Mac, may trigger another rapid rise in MBS risk spreads.
AGNC Investment: We Continue To Stay Out After A 20% Correction
AGNC Investment stock has lost more than 20% since I last cautioned that it is being pressured by yield spread narrowing . Now I see the possibility even higher for the yield curve spread to keep narrowing or even to invert. Yet, it is still trading at a historically fair valuation. Given the risks ahead, I do not feel the current valuation justifies an investment here.
|AGNC||US Mortgage REITs||US Market|
Return vs Industry: AGNC underperformed the US Mortgage REITs industry which returned -30.4% over the past year.
Return vs Market: AGNC underperformed the US Market which returned -20.5% over the past year.
|AGNC Average Weekly Movement||5.2%|
|Mortgage REITs Industry Average Movement||5.4%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||16.5%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: AGNC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AGNC's weekly volatility (5%) has been stable over the past year.
About the Company
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 the United States government-sponsored enterprise or by the United States government agency. It funds its investments primarily through collateralized borrowings structured as repurchase agreements.
AGNC Investment Fundamentals Summary
|AGNC fundamental statistics|
Is AGNC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AGNC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||-1.87|
|Net Profit Margin||123.36%|
How did AGNC perform over the long term?See historical performance and comparison
12.4%Current Dividend Yield
Does AGNC pay a reliable dividends?See AGNC dividend history and benchmarks
|AGNC Investment dividend dates|
|Ex Dividend Date||Jun 29 2022|
|Dividend Pay Date||Jul 12 2022|
|Days until Ex dividend||4 days|
|Days until Dividend pay date||17 days|
Does AGNC pay a reliable dividends?See AGNC dividend history and benchmarks
Is AGNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AGNC?
Other financial metrics that can be useful for relative valuation.
|What is AGNC's n/a Ratio?|
Price to Book Ratio vs Peers
How does AGNC's PB Ratio compare to its peers?
|AGNC PB Ratio vs Peers|
|Company||PB||Estimated Growth||Market Cap|
Price-To-Book vs Peers: AGNC is good value based on its Price-To-Book Ratio (0.8x) compared to the peer average (1x).
Price to Earnings Ratio vs Industry
How does AGNC's PE Ratio compare vs other companies in the U.S. Mortgage REITs Industry?
Price-To-Book vs Industry: AGNC is expensive based on its Price-To-Book Ratio (0.8x) compared to the US Mortgage REITs industry average (0.8x)
Price to Book Ratio vs Fair Ratio
What is AGNC's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PB Ratio||0.8x|
|Fair PB Ratio||n/a|
Price-To-Book vs Fair Ratio: Insufficient data to calculate AGNC's Price-To-Book Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of AGNC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AGNC ($11.6) is trading below our estimate of fair value ($21.99)
Significantly Below Fair Value: AGNC is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AGNC's PEG Ratio to determine if it is good value.
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How is AGNC Investment forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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 (1.9%).
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 is expected to become profitable in the next 3 years.
Revenue vs Market: AGNC's revenue (46.5% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: AGNC's revenue (46.5% 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 (14.4%).
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How has AGNC Investment performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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 15.4% 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 (5.4%).
Return on Equity
High ROE: AGNC has a negative Return on Equity (-9.82%), as it is currently unprofitable.
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How is AGNC Investment's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AGNC's short term assets ($15.7B) do not cover its short term liabilities ($57.3B).
Long Term Liabilities: AGNC's short term assets ($15.7B) exceed its long term liabilities ($116.0M).
Debt to Equity History and Analysis
Debt Level: AGNC's net debt to equity ratio (371.8%) is considered high.
Reducing Debt: AGNC's debt to equity ratio has reduced from 546.4% to 509.5% over the past 5 years.
Debt Coverage: AGNC's debt is not well covered by operating cash flow (3.3%).
Interest Coverage: Insufficient data to determine if AGNC's interest payments on its debt are well covered by EBIT.
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What is AGNC Investment current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AGNC's dividend (12.41%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: AGNC's dividend (12.41%) is in the top 25% of dividend payers in the US market (4.34%)
Stability and Growth of Payments
Stable Dividend: AGNC's dividend payments have been volatile in the past 10 years.
Growing Dividend: AGNC's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: AGNC is paying a dividend but the company is unprofitable.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (50.8%), AGNC's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Peter Federico (55 yo)
Mr. Peter J. Federico is Chief Executive Officer and Director at AGNC Investment Corp. since July 1, 2021 and serves as its President since March 31, 2018. He had been Chief Operating Officer of AGNC Inves...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD6.95M) is about average for companies of similar size in the US market ($USD8.47M).
Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.
Experienced Management: AGNC's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: AGNC's board of directors are considered experienced (3.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AGNC Investment Corp.'s employee growth, exchange listings and data sources
- Name: AGNC Investment Corp.
- Ticker: AGNC
- Exchange: NasdaqGS
- Founded: 2008
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Implied Market Cap: US$6.071b
- Shares outstanding: 523.36m
- Website: https://www.agnc.com
Number of Employees
- AGNC Investment Corp.
- 2 Bethesda Metro Center
- 12th Floor
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.