NYSE:AGO

Stock Analysis Report

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Executive Summary

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. More Details


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Assured Guaranty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

AGO

-2.5%

US Insurance

-2.4%

US Market


1 Year Return

-44.0%

AGO

-14.2%

US Insurance

18.2%

US Market

Return vs Industry: AGO underperformed the US Insurance industry which returned -13.5% over the past year.

Return vs Market: AGO underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

AGOIndustryMarket
7 Day-7.6%-2.5%-2.4%
30 Day37.8%0.2%4.2%
90 Day15.4%-1.7%6.3%
1 Year-42.6%-44.0%-11.8%-14.2%20.9%18.2%
3 Year-23.9%-28.2%-1.6%-8.7%41.2%31.8%
5 Year8.6%-0.9%36.6%19.4%84.8%63.9%

Price Volatility Vs. Market

How volatile is Assured Guaranty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Assured Guaranty 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: AGO ($26.28) is trading below our estimate of fair value ($65.88)

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


Price To Earnings Ratio

PE vs Industry: AGO is good value based on its PE Ratio (7.3x) compared to the US Insurance industry average (14.7x).

PE vs Market: AGO is good value based on its PE Ratio (7.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AGO is good value based on its PB Ratio (0.3x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Assured Guaranty forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGO's earnings are forecast to decline over the next 3 years (-10.3% per year).

Earnings vs Market: AGO's earnings are forecast to decline over the next 3 years (-10.3% per year).

High Growth Earnings: AGO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AGO's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: AGO's revenue is forecast to decline over the next 3 years (-5.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGO's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Assured Guaranty performed over the past 5 years?

-26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGO has high quality earnings.

Growing Profit Margin: AGO's current net profit margins (33%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: AGO's earnings have declined by 26.7% per year over the past 5 years.

Accelerating Growth: AGO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AGO had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).


Return on Equity

High ROE: AGO's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Assured Guaranty's financial position?


Financial Position Analysis

Short Term Liabilities: AGO's short term assets ($3.3B) do not cover its short term liabilities ($4.4B).

Long Term Liabilities: AGO's short term assets ($3.3B) do not cover its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: AGO's debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: AGO's debt to equity ratio has reduced from 22.5% to 16.7% over the past 5 years.

Debt Coverage: AGO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AGO's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Assured Guaranty current dividend yield, its reliability and sustainability?

3.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AGO's dividend (3.04%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AGO's dividend (3.04%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: AGO's dividends per share have been stable in the past 10 years.

Growing Dividend: AGO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), AGO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGO's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

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

9.3yrs

Average management tenure


CEO

Dominic Frederico (67 yo)

16.83yrs

Tenure

US$12,153,470

Compensation

Mr. Dominic John Frederico is the President and Chief Executive Officer of Assured Guaranty Ltd. since December 2003 and serves as its Deputy Chairman. Mr. Frederico serves as the Chief Executive Officer a ...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD12.15M) is above average for companies of similar size in the US market ($USD4.44M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dominic Frederico
Deputy Chairman16.83yrsUS$12.15m1.87%
$ 41.0m
Robert Bailenson
Chief Financial Officer9.33yrsUS$4.67m0.24%
$ 5.3m
Gon Chow
General Counsel & Secretary2.75yrsUS$3.60m0.059%
$ 1.3m
Russell Brewer
Chief Surveillance Officer10.92yrsUS$3.53m0.22%
$ 4.8m
David Buzen
Chief Investment Officer0.17yrno datano data
Laura Bieling
Executive Officer1.42yrsno data0.0098%
$ 216.1k
Chris Gibbons
Chief Technology Officer0.75yrno datano data
Kurt Vandenberg
Chief Information Officerno datano datano data
Robert Tucker
Senior Managing Director of Investor Relations & Corporate Communications9.33yrsno datano data
Ivana Grillo
Senior Managing Director of Human Resourcesno datano datano data
Howard Albert
Chief Risk Officer16.75yrsUS$972.91k0.21%
$ 4.6m
Daniel Bevill
Senior MD & Co-Head of Structured Financeno datano datano data

9.3yrs

Average Tenure

60yo

Average Age

Experienced Management: AGO's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominic Frederico
Deputy Chairman16.83yrsUS$12.15m1.87%
$ 41.0m
Francisco Borges
Independent Chairman of the Board5.42yrsUS$523.01k0.32%
$ 7.1m
Patrick Kenny
Independent Director16.5yrsUS$354.75k0.089%
$ 2.0m
Thomas Jones
Independent Director5.17yrsUS$320.67k0.044%
$ 960.5k
Alan Kreczko
Independent Director5.17yrsUS$352.14k0.055%
$ 1.2m
Simon Leathes
Independent Director7.42yrsUS$418.65k0.029%
$ 639.4k
George Buhl
Independent Director16.5yrsUS$340.88k0.079%
$ 1.7m
Michael O'Kane
Independent Director15.17yrsUS$322.65k0.078%
$ 1.7m
Bonnie Howard
Independent Director8.17yrsUS$331.50k0.044%
$ 970.0k
Yukiko Omura
Independent Director6.42yrsUS$295.00k0.023%
$ 498.1k

7.4yrs

Average Tenure

70yo

Average Age

Experienced Board: AGO's board of directors are considered experienced (7.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Assured Guaranty Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Assured Guaranty Ltd.
  • Ticker: AGO
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$2.194b
  • Shares outstanding: 83.47m
  • Website: https://www.assuredguaranty.com

Number of Employees


Location

  • Assured Guaranty Ltd.
  • 30 Woodbourne Avenue
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2004
DHUDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2004
AGO NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2004

Biography

Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:57
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.