Avangrid, Inc.

AGR

Electric Services

Mkt Cap

$13.87B

PE

17.97

Debt

Cash

$155M

EV

FCF

-$2.14B

Market Cap

$13.87B

P/E Ratio

17.97

Debt

Cash

$155M

EV

FCF

-$2.14B

Charts data: {"Earnings":[{"time":"2014-12-30","value":424000000},{"time":"2015-12-30","value":267000000},{"time":"2016-12-30","value":630000000},{"time":"2017-12-30","value":381000000},{"time":"2018-12-30","value":595000000},{"time":"2019-12-30","value":667000000},{"time":"2020-12-30","value":539000000},{"time":"2021-12-30","value":643000000},{"time":"2022-12-30","value":821000000},{"time":"2023-12-30","value":665000000}],"Sales":[{"time":"2014-12-30","value":4594000000},{"time":"2015-12-30","value":4367000000},{"time":"2016-12-30","value":6018000000},{"time":"2017-12-30","value":5963000000},{"time":"2018-12-30","value":6478000000},{"time":"2019-12-30","value":6338000000},{"time":"2020-12-30","value":6320000000},{"time":"2021-12-30","value":6974000000},{"time":"2022-12-30","value":7923000000},{"time":"2023-12-30","value":8309000000}],"Net Margins":[{"time":"2014-12-30","value":0.09229429690901175},{"time":"2015-12-30","value":0.06114037096404855},{"time":"2016-12-30","value":0.10468594217347957},{"time":"2017-12-30","value":0.0638940130806641},{"time":"2018-12-30","value":0.09184933621488113},{"time":"2019-12-30","value":0.10523824550331334},{"time":"2020-12-30","value":0.08528481012658228},{"time":"2021-12-30","value":0.09219959850874677},{"time":"2022-12-30","value":0.10362236526568219},{"time":"2023-12-30","value":0.08003369839932603}],"Assets":[{"time":"2014-12-30","value":24252000000},{"time":"2015-12-30","value":30743000000},{"time":"2016-12-30","value":31309000000},{"time":"2017-12-30","value":31671000000},{"time":"2018-12-30","value":32167000000},{"time":"2019-12-30","value":34416000000},{"time":"2020-12-30","value":37823000000},{"time":"2021-12-30","value":39504000000},{"time":"2022-12-30","value":41123000000},{"time":"2023-12-30","value":43989000000}],"Stockholders Equity":[{"time":"2014-12-30","value":12456000000},{"time":"2015-12-30","value":15066000000},{"time":"2016-12-30","value":15122000000},{"time":"2017-12-30","value":15096000000},{"time":"2018-12-30","value":15403000000},{"time":"2019-12-30","value":15586000000},{"time":"2020-12-30","value":15826000000},{"time":"2021-12-30","value":19961000000},{"time":"2022-12-30","value":20342000000},{"time":"2023-12-30","value":20676000000}],"ROE":[{"time":"2014-12-30","value":0.0340398201669878},{"time":"2015-12-30","value":0.017722023098367186},{"time":"2016-12-30","value":0.04166115593175506},{"time":"2017-12-30","value":0.025238473767885534},{"time":"2018-12-30","value":0.03862883853794715},{"time":"2019-12-30","value":0.042794815860387525},{"time":"2020-12-30","value":0.034057879438898014},{"time":"2021-12-30","value":0.032212814989229},{"time":"2022-12-30","value":0.04035984662275096},{"time":"2023-12-30","value":0.03216289417682337}],"ROA":[{"time":"2014-12-30","value":0.03649183572488867},{"time":"2015-12-30","value":0.016686725433432},{"time":"2016-12-30","value":0.03813599923344725},{"time":"2017-12-30","value":0.012156231252565439},{"time":"2018-12-30","value":0.035035906363664625},{"time":"2019-12-30","value":0.029143421664342167},{"time":"2020-12-30","value":0.022975438225418397},{"time":"2021-12-30","value":0.0226559335763467},{"time":"2022-12-30","value":0.020718332806458673},{"time":"2023-12-30","value":0.021141649048625793}]}

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 in two segments: Networks and Renewables. 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 9.2 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.

Sector

10-Q
9/30/23
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10-K
12/31/22
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10-Q
3/31/18
10-K
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.7%

Earnings Stability 34%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	6.1%	10%	6.4%	9.2%	11%	8.5%	9.2%	10%	8%	9.3%
ROA	1.7%	3.8%	1.2%	3.5%	2.9%	2.3%	2.3%	2.1%	2.1%	2.4%
ROE	1.8%	4.2%	2.5%	3.9%	4.3%	3.4%	3.2%	4%	3.2%	3.7%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.3%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.16%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.53%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.27%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +3.67%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.12%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	17.71	-35.67	-9.44	1587.25	-7.13	-5.43	-6.12	-6.19	-5.46	-
Debt Equity	0.33	0.34	0.41	0.41	0.52	0.51	0.43	0.45	0.54	-
MIN
Graham Stability	-	-	87%	100%	100%	98%	100%	100%	100%	87%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -227.47.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.87.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	4.7%	5.1%	9.5%	4.9%	-0.33%
Net Income	0.78%	2.2%	7.3%	-19%	-3.5%
Stockholders Equity	4.6%	6.1%	9.3%	1.6%	-0.34%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.1%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.33%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +2.25%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.51%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.07%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.34%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.