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Fundamental analysis: Avangrid, Inc. (AGR)

Awarener score: 4.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Lacking), and the company's inclination to return cash to the stockholders (Poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business has been slightly shrinking. It's been encouraging in relation to peer companies.
  • Avangrid, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 7.5

  • AGR profit margins -on goods and services sold- are usually good. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be very good. It's substantially worse when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still worse than most similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain substantially worse when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 6.9

  • Avangrid, Inc. profit -on goods and services sold- has been growing at a low pace. It's been in a weak position compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been better than most comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares more than average in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be excellent in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was top-notch against rivals.
  • In the previous years, growth on total net profit has been average, and encouraging in relation to peer companies.
  • Earnings per share have grown at a low rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 9.0

  • AGR managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been better than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.8

  • Avangrid, Inc. usually gets sufficient returns on the resources it controls. It proves last-in-rank when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's last-in-rank when measured against comparable enterprises.

Usage of Funds score: 4.6

  • AGR usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands last-in-rank when measured against rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came well ranked against competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved in a very weak position compared to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
  • The company generates very few genuine funds. Investor rewards must be paid burning existing cash or by borrowing money, which isn't sustainable in the long run. Unless business prospects improve greatly, stockholder compensation could be at risk. It still looks last-in-rank when measured against competitors.

Balance Sheet score: 4.8

  • Avangrid, Inc. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in good shape compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains better than most rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in good shape compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is well ranked against similar enterprises.
  • Usually, sales are mostly on cash. It still ranks substantially worse when measured against peers.
  • Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as rather normal in relation to competitors.
  • On average, it takes close to one month from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks great when measured against industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's in good shape compared to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly better than rival firms.
  • Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a very weak position compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 5.3

  • Avangrid, Inc. looks expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands worse than most similar companies.
  • The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
  • In the past twelve months, the company has significantly enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among numerous more stockholders. It came up a disappointment compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains top-notch against peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be almost average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 6.3


AGR logos

Company at a glance: Avangrid, Inc. (AGR)

Sector, industry: Utilities, Utilities—Regulated Electric

Market Cap: 16.56 billions

Revenues TTM: 7.70 billions

Avangrid, Inc., an energy services holding company, engages in the regulated energy transmission and distribution, and renewable energy generation businesses in the United States. The company operates through Networks and Renewables segments. It is involved in the generation, transmission, and distribution of electricity; and distribution, transportation, and sale of natural gas. The company also operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. It delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, the company generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. It owns eight electric and natural gas utilities, serving 3.3 million customers in New York and New England, as well as owns and operates 8.8 gigawatts of electricity capacity primarily through wind power in 22 states. The company was incorporated in 1997 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Awarener score: 4.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Lacking), and the company's inclination to return cash to the stockholders (Poor).