Assured Guaranty Ltd. Fundamental Analysis (NYSE: AGO)
Assured Guaranty Ltd. Fundamental Analysis (NYSE: AGO)
Assured Guaranty Ltd. (NYSE: AGO) shows moderate financial fundamentals with a PE ratio of 9.98, profit margin of 43.64%, and ROE of 7.38%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AGO's fundamental strength across five key dimensions:
Efficiency Score
WeakAGO struggles to generate sufficient returns from assets.
Valuation Score
ModerateAGO shows balanced valuation metrics.
Growth Score
ModerateAGO shows steady but slowing expansion.
Financial Health Score
ExcellentAGO maintains a strong and stable balance sheet.
Profitability Score
ModerateAGO maintains healthy but balanced margins.
Key Financial Metrics
Is AGO Expensive or Cheap?
P/E Ratio
AGO trades at 9.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AGO's PEG of 17.01 indicates potential overvaluation.
Price to Book
The market values Assured Guaranty Ltd. at 0.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.49 times EBITDA. This is generally considered low.
How Well Does AGO Make Money?
Net Profit Margin
For every $100 in sales, Assured Guaranty Ltd. keeps $43.64 as profit after all expenses.
Operating Margin
Core operations generate 49.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.38 in profit for every $100 of shareholder equity.
ROA
Assured Guaranty Ltd. generates $3.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Assured Guaranty Ltd. generates strong operating cash flow of $353.09M, reflecting robust business health.
Free Cash Flow
Assured Guaranty Ltd. generates strong free cash flow of $353.09M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.97 in free cash annually.
FCF Yield
AGO converts 9.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AGO Stacks Against Its Sector Peers
| Metric | AGO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.98 | 21.06 | Better (Cheaper) |
| ROE | 7.38% | 651.00% | Weak |
| Net Margin | 43.64% | -599.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 887.27 | Neutral |
| ROA | 3.28% | 6570.00% | Weak |
AGO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Assured Guaranty Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical