Fundamental analysis: Avangrid, Inc. (AGR)

Awarener score: 5.5

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 (Average), the business stability (Excellent) and growth (Lacking), and the company's inclination to return cash to the stockholders (Lacking).

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 almost average when measured against peer companies.
Avangrid, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 7.7

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

Growth score: 3.0

Avangrid, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares below average when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be close to average when compared to similar stocks.
In past years, growth on profits -before income taxes- was almost stagnant. It was somewhat worse than rivals.
In the previous years, growth on total net profit has been very low, and more than average in relation to peer companies.
Earnings per share have been almost stagnant in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 8.0

AGR managed to pay little to no income taxes on profits made in the past years. It's been somewhat better than 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: 6.0

Avangrid, Inc. usually gets good returns on the resources it controls. It proves substantially worse 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 substantially worse 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 substantially worse when measured against rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
In the past twelve months it paid very good dividends, considering the current stock price. It came better than most competitors.
In recent years, has slightly cut back dividend payments. The company has behaved in a 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: 5.8

Avangrid, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be excellent in relation to similar firms.
Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains better than most rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be well ranked against peers.
On average pays suppliers during the first couple of weeks from the purchase. It ranks substantially worse 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 lacking compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly better than rival firms.
Business earnings have usually been good when measured against loans taken. Cutting back reinvesting in the business, it could take less than three years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.5

Avangrid, Inc. looks somewhat expensive in relation to profits and financial position. It happens to be great when measured against 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 generated some good free funds in relation to the stock price, which stands top-notch against similar companies.
In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still substantially worse when measured against industry firms.
In the past twelve months, the company has 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 somewhat more stockholders. It came up a disappointment compared to peer ventures.
The company is somewhat indebted, loan repayment needs to be taken into account. It looks well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in good shape compared to rival firms.
The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still in good shape compared to peer companies.

Total score: 6.0

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

Sector, industry: Utilities, Utilities—Regulated Electric

Market Cap: 14.51 billions

Revenues TTM: 7.92 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.