American Capital Agency Corp

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AGNC : NASDAQ : Financial
$19.59 | %
Today's Range: 19.41 - 19.70
Avg. Daily Volume: 3,458,700
07/29/16 - 4:00 PM ET

Financial Analysis


AMERICAN CAPITAL AGENCY CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry.

During the same period, stockholders' equity ("net worth") has decreased by 18.12% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)293.0419.0
EBITDA ($mil)260.0383.0
EBIT ($mil)260.0383.0
Net Income ($mil)-772.0-252.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)2795.02816.0
Total Assets ($mil)62396.073105.0
Total Debt ($mil)48875.058837.0
Equity ($mil)7660.09356.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin88.7491.41
EBITDA Margin88.7391.4
Operating Margin88.7491.41
Sales Turnover0.020.02
Return on Assets-0.48-0.47
Return on Equity-4.34-3.96
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.860.86
Interest Expense99.086.0
Interest Coverage2.634.45


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)331.0352.8
Div / share0.60.66
EPS-2.33-0.73
Book value / share23.1426.52
Institutional Own % n/a n/a
Avg Daily Volume3459410.03499346.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.85 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 4.07. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, AMERICAN CAPITAL AGENCY CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AGNC NM Peers 50.71   AGNC 4.74 Peers 24.22

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

AGNC's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AGNC is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AGNC 9.60 Peers 55.43   AGNC NA Peers 4.98

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AGNC is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AGNC 0.85 Peers 4.07   AGNC 0.96 Peers 63.97

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AGNC is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AGNC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AGNC 4.92 Peers 8.76   AGNC -15.69 Peers 47.28

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AGNC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AGNC significantly trails its peers on the basis of sales growth

 

 

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