NYSE:AGR

Stock Analysis Report

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Executive Summary

Avangrid, Inc. operates as an energy services holding company in the United States. More Details


Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AGR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AGR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

AGR

-4.8%

US Electric Utilities

-3.6%

US Market


1 Year Return

-7.9%

AGR

-7.3%

US Electric Utilities

36.4%

US Market

Return vs Industry: AGR matched the US Electric Utilities industry which returned -7.4% over the past year.

Return vs Market: AGR underperformed the US Market which returned 38.5% over the past year.


Shareholder returns

AGRIndustryMarket
7 Day1.7%-4.8%-3.6%
30 Day-3.1%-7.4%0.9%
90 Day-1.8%-7.3%6.7%
1 Year-4.5%-7.9%-4.2%-7.3%39.4%36.4%
3 Year6.0%-4.8%21.1%10.8%53.4%43.5%
5 Year43.2%18.8%27.6%9.4%117.3%93.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Avangrid undervalued compared to its fair value and its price relative to the market?

24.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AGR ($45.76) is trading above our estimate of fair value ($30.46)

Significantly Below Fair Value: AGR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AGR is poor value based on its PE Ratio (24.4x) compared to the US Electric Utilities industry average (19.3x).

PE vs Market: AGR is poor value based on its PE Ratio (24.4x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: AGR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: AGR is good value based on its PB Ratio (0.9x) compared to the US Electric Utilities industry average (1.7x).


Next Steps

Future Growth

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

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGR's forecast earnings growth (9.3% per year) is above the savings rate (2%).

Earnings vs Market: AGR's earnings (9.3% per year) are forecast to grow slower than the US market (20.3% per year).

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

Revenue vs Market: AGR's revenue (4.7% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: AGR's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGR's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Avangrid performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGR has high quality earnings.

Growing Profit Margin: AGR's current net profit margins (9.2%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: AGR's earnings have grown by 8.2% per year over the past 5 years.

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

Earnings vs Industry: AGR had negative earnings growth (-17%) over the past year, making it difficult to compare to the Electric Utilities industry average (-7.7%).


Return on Equity

High ROE: AGR's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Avangrid's financial position?


Financial Position Analysis

Short Term Liabilities: AGR's short term assets ($1.9B) do not cover its short term liabilities ($4.2B).

Long Term Liabilities: AGR's short term assets ($1.9B) do not cover its long term liabilities ($15.6B).


Debt to Equity History and Analysis

Debt Level: AGR's debt to equity ratio (56.1%) is considered high.

Reducing Debt: AGR's debt to equity ratio has increased from 32.7% to 56.1% over the past 5 years.

Debt Coverage: AGR's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: AGR's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Avangrid current dividend yield, its reliability and sustainability?

3.85%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AGR's dividend (3.85%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: AGR's dividend (3.85%) is in the top 25% of dividend payers in the US market (3.76%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AGR has been paying a dividend for less than 10 years.

Growing Dividend: AGR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.8%), AGR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGR's dividends in 3 years are forecast to be covered by earnings (72% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Dennis Arriola (59 yo)

0.58

Tenure

Mr. Dennis Victor Arriola serves as Chief Executive Officer and Director at Avangrid, Inc. since July 20, 2020. Mr. Arriola served as an Executive Vice President and Group President at Sempra Energy since ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Kump
Deputy CEO & President1.67yrsUS$1.64m0.0028%
$ 393.7k
Douglas Stuver
Senior VP & CFO2.58yrsUS$702.16k0.00059%
$ 83.6k
R. Mahoney
Senior VP5.17yrsUS$1.46m0.0016%
$ 232.3k
Anthony Marone
President & CEO of Networks1.67yrsUS$1.90m0.0038%
$ 541.0k
Dennis Arriola
CEO & Director0.58yrno datano data
Peter Church
Senior VP of Human Resources & Corporate Administration2.33yrsUS$1.12m0.0028%
$ 400.8k
Patricia Cosgel
Vice President Investor & Shareholder Relationsno datano datano data
Ignacio Estella
Senior Vice President of Corporate Development5.17yrsno data0.00016%
$ 22.7k
F. McClain
Chief Development Officer20.33yrsUS$1.61mno data
Manuel Gonzalez
Senior VP & Chief of Staff5.08yrsno datano data
Karen Zink
President & COO of the Berkshire Gas Co.17.08yrsno datano data
Douglas Herling
President & CEO of CMPno datano datano data

3.8yrs

Average Tenure

56.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Dennis Arriola
CEO & Director0.58yrno datano data
David Flanagan
Executive Chairman of CMP1yrno datano data
John Lahey
Independent Non-Executive Director5.17yrsUS$185.00k0.0071%
$ 1.0m
Alan Solomont
Independent Non-Executive Director7.08yrsUS$200.00k0.0023%
$ 321.5k
Jose Sáinz Armada
Director7.08yrsUS$155.00kno data
Pedro Azagra Blázquez
Director1.17yrsUS$70.00kno data
José Ignacio Galán
Chairman of the Boardno dataUS$200.00k0.034%
$ 4.9m
Santiago Martínez Garrido
Director6yrsUS$140.00kno data
Daniel Lopéz
Director0.92yrUS$772.44k0.00059%
$ 83.6k
John Baldacci
Vice Chairman of the Boardno dataUS$200.00k0.00011%
$ 15.6k
Elizabeth Timm
Independent Director4.58yrsUS$170.00k0.00063%
$ 89.2k
Robert Duffy
Independent Director1.67yrsUS$100.00k0%
$ 0

3.1yrs

Average Tenure

65yo

Average Age

Experienced Board: AGR's board of directors are considered experienced (3.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Avangrid, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avangrid, Inc.
  • Ticker: AGR
  • Exchange: NYSE
  • Founded: 1852
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$14.162b
  • Shares outstanding: 309.49m
  • Website: https://www.avangrid.com

Number of Employees


Location

  • Avangrid, Inc.
  • 180 Marsh Hill Road
  • Orange
  • Connecticut
  • 6477
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGRNYSE (New York Stock Exchange)YesNew Common StockUSUSDDec 2015
12ADB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2015

Biography

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 23:34
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
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.