NasdaqGS:AGNC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.7%

AGNC

-36.4%

US Mortgage REITs

-2.8%

US Market


1 Year Return

-47.3%

AGNC

-67.7%

US Mortgage REITs

-15.9%

US Market

Return vs Industry: AGNC exceeded the US Mortgage REITs industry which returned -63.7% over the past year.

Return vs Market: AGNC underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

AGNCIndustryMarket
7 Day-27.7%-36.4%-2.8%
30 Day-46.3%-66.5%-18.8%
90 Day-46.4%-67.4%-24.0%
1 Year-40.8%-47.3%-63.9%-67.7%-14.2%-15.9%
3 Year-33.4%-52.6%-56.3%-68.7%9.9%2.8%
5 Year-21.3%-56.2%-46.8%-69.7%27.2%13.3%

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 ($9.8) is trading below our estimate of fair value ($46.52)

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 (8.4x) compared to the Mortgage REITs industry average (3.4x).

PE vs Market: AGNC is good value based on its PE Ratio (8.4x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: AGNC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AGNC is overvalued based on its PB Ratio (0.5x) compared to the US Mortgage REITs industry average (0.3x).


Next Steps

Future Growth

How is AGNC Investment forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGNC's forecast earnings growth (19.8% per year) is above the savings rate (1.7%).

Earnings vs Market: AGNC's earnings (19.8% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: AGNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGNC's revenue (25.7% per year) is forecast to grow faster than the US market (7.1% 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 (12.6%).


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 18.1%.


Return on Equity

High ROE: AGNC's Return on Equity (6.2%) is considered low.


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?

20.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGNC's dividend (19.59%) is higher than the bottom 25% of dividend payers in the US market (2.04%).

High Dividend: AGNC's dividend (19.59%) is in the top 25% of dividend payers in the US market (5.7%)


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 (85% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Gary Kain (54yo)

4.08s

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 ($USD16.13M) is above average for companies of similar size in the US market ($USD7.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Kain
CEO, Chief Investment Officer & Director4.08yrsUS$16.13m0.39% $19.8m
Peter Federico
President & COO2.08yrsUS$5.06m0.10% $5.3m
Bernice Bell
Senior VP & CFO2.08yrsUS$1.85m0.0012% $62.2k
Christopher Kuehl
Executive Vice President of Agency Portfolio Investments8.08yrsUS$4.30m0.088% $4.5m
Aaron Pas
Senior Vice President of Non-Agency Portfolio Investmentsno dataUS$1.94mno data
Christopher Erhorn
Senior VP & CTO3yrsno datano data
Katie Wisecarver
Vice President of Investor Relations3.75yrsno datano data
Kenneth Pollack
Senior VP3.75yrsUS$1.36m0.0014% $69.4k
Sean Reid
Senior Vice President of Strategy & Corporate Development3.75yrsno datano data
Jason Campbell
Head of Asset & Liability Management and Senior Vice President3.75yrsno datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: AGNC's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Kain
CEO, Chief Investment Officer & Director4.08yrsUS$16.13m0.39% $19.8m
John Fisk
Independent Director0.58yrUS$30.28kno data
Donna Blank
Independent Director1.33yrsUS$241.67kno data
Frances Spark
Independent Director0.58yrUS$30.28k0.00092% $47.3k
Paul Mullings
Independent Director3.33yrsUS$225.00kno data
Morris Davis
Independent Director12.25yrsUS$250.00k0.0014% $70.0k
Prue Larocca
Chairman & Lead Independent Director3.92yrsUS$275.00k0.0047% $242.8k

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: AGNC's board of directors are considered experienced (3.3 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$5.144b
  • Shares outstanding: 540.94m
  • 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
4OQ1BRSE (Berne Stock Exchange)YesCommon StockCHCHFMay 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% DPRP 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 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:35
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.