AGNC Investment Corp.
AGNC Investment Corp. Fundamental Analysis
AGNC Investment Corp. (AGNCN) shows moderate financial fundamentals with a PE ratio of 7.38, profit margin of 87.02%, and ROE of 15.10%. The company generates $0.6B in annual revenue with weak year-over-year growth of 2.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AGNCN's fundamental strength across five key dimensions:
Efficiency Score
WeakAGNCN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAGNCN trades at attractive valuation levels.
Growth Score
ModerateAGNCN shows steady but slowing expansion.
Financial Health Score
WeakAGNCN carries high financial risk with limited liquidity.
Profitability Score
ExcellentAGNCN achieves industry-leading margins.
Key Financial Metrics
Is AGNCN Expensive or Cheap?
P/E Ratio
AGNCN trades at 7.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGNCN's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values AGNC Investment Corp. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -19.74 times EBITDA. This is generally considered low.
How Well Does AGNCN Make Money?
Net Profit Margin
For every $100 in sales, AGNC Investment Corp. keeps $87.02 as profit after all expenses.
Operating Margin
Core operations generate 2.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.10 in profit for every $100 of shareholder equity.
ROA
AGNC Investment Corp. generates $1.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AGNC Investment Corp. generates strong operating cash flow of $190.44M, reflecting robust business health.
Free Cash Flow
AGNC Investment Corp. generates strong free cash flow of $190.44M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.55 in free cash annually.
FCF Yield
AGNCN converts 4.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How AGNCN Stacks Against Its Sector Peers
| Metric | AGNCN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.38 | 24.23 | Better (Cheaper) |
| ROE | 15.10% | 659.00% | Weak |
| Net Margin | 87.02% | 4497.00% | Weak |
| Debt/Equity | 8.21 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.01 | 13.87 | Weak Liquidity |
| ROA | 1.45% | -1390.00% (disorted) | Weak |
AGNCN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AGNC Investment Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-12.91%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-13.44%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-94.97%
Industry Style: Income, Inflation Hedge, REIT
Declining