AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock
AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock Fundamental Analysis
AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock (AGNCZ) shows moderate financial fundamentals with a PE ratio of 8.53, profit margin of 61.39%, and ROE of 12.32%. The company generates $2.3B 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 -12.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AGNCZ's fundamental strength across five key dimensions:
Efficiency Score
WeakAGNCZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAGNCZ trades at attractive valuation levels.
Growth Score
ModerateAGNCZ shows steady but slowing expansion.
Financial Health Score
ModerateAGNCZ shows balanced financial health with some risks.
Profitability Score
ModerateAGNCZ maintains healthy but balanced margins.
Key Financial Metrics
Is AGNCZ Expensive or Cheap?
P/E Ratio
AGNCZ trades at 8.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGNCZ's PEG of -0.63 indicates potential undervaluation.
Price to Book
The market values AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.40 times EBITDA. This is generally considered low.
How Well Does AGNCZ Make Money?
Net Profit Margin
For every $100 in sales, AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock keeps $61.39 as profit after all expenses.
Operating Margin
Core operations generate 1.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.32 in profit for every $100 of shareholder equity.
ROA
AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock generates $1.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock generates strong operating cash flow of $644.97M, reflecting robust business health.
Free Cash Flow
AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock generates strong free cash flow of $644.97M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.58 in free cash annually.
FCF Yield
AGNCZ converts 5.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AGNCZ Stacks Against Its Sector Peers
| Metric | AGNCZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.53 | 18.99 | Better (Cheaper) |
| ROE | 12.32% | 821.00% | Weak |
| Net Margin | 61.39% | 1914.00% | Weak |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 657.31 | Weak Liquidity |
| ROA | 1.20% | -25084.00% (disorted) | Weak |
AGNCZ outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock'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: Value, Dividend, Cyclical
High GrowthEPS CAGR
348.07%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-85.23%
Industry Style: Value, Dividend, Cyclical
Declining