AGNC Investment Corp. Fundamental Analysis (NASDAQ: AGNCP)
AGNC Investment Corp. (NASDAQ: AGNCP) shows weak financial fundamentals with a PE ratio of 125.79, profit margin of 1.68%, and ROE of 0.48%. The company generates $1.2B in annual revenue with weak year-over-year growth of -60.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -57.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AGNCP's fundamental strength across five key dimensions:
Efficiency Score
WeakAGNCP struggles to generate sufficient returns from assets.
Valuation Score
ModerateAGNCP shows balanced valuation metrics.
Growth Score
ModerateAGNCP shows steady but slowing expansion.
Financial Health Score
WeakAGNCP carries high financial risk with limited liquidity.
Profitability Score
ModerateAGNCP maintains healthy but balanced margins.
Key Financial Metrics
Is AGNCP Expensive or Cheap?
P/E Ratio
AGNCP trades at 125.79 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AGNCP's PEG of -1.41 indicates potential undervaluation.
Price to Book
The market values AGNC Investment Corp. at 0.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -51.60 times EBITDA. This is generally considered low.
How Well Does AGNCP Make Money?
Net Profit Margin
For every $100 in sales, AGNC Investment Corp. keeps $1.68 as profit after all expenses.
Operating Margin
Core operations generate 88.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.48 in profit for every $100 of shareholder equity.
ROA
AGNC Investment Corp. generates $0.04 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 $313.36M, reflecting robust business health.
Free Cash Flow
AGNC Investment Corp. generates strong free cash flow of $313.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.74 in free cash annually.
FCF Yield
AGNCP converts 8.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
125.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
8.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How AGNCP Stacks Against Its Sector Peers
| Metric | AGNCP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 125.79 | 25.31 | Worse (Expensive) |
| ROE | 0.48% | 723.00% | Weak |
| Net Margin | 1.68% | 2531.00% | Weak |
| Debt/Equity | 8.37 | -37.99 (disorted) | Distorted |
| Current Ratio | 0.02 | 51.51 | Weak Liquidity |
| ROA | 0.04% | 278.00% | Weak |
AGNCP outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
121.55%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
348.07%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-85.23%
Industry Style: Income, Inflation Hedge, REIT
Declining