Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Avangrid

DB:12A
Snowflake Description

Acceptable track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
12A
DB
$14B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

Avangrid, Inc. operates as an energy services holding company in the United States. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • Avangrid has significant price volatility in the past 3 months.
12A Share Price and Events
7 Day Returns
7.5%
DB:12A
4.3%
Europe Electric Utilities
7.3%
DE Market
1 Year Returns
-10%
DB:12A
-2.4%
Europe Electric Utilities
-17.7%
DE Market
12A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Avangrid (12A) 7.5% -7.4% -10.3% -10% 0.9% -
Europe Electric Utilities 4.3% -17% -14% -2.4% 19.4% -2.1%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • 12A underperformed the Electric Utilities industry which returned -2.4% over the past year.
  • 12A outperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
12A
Industry
5yr Volatility vs Market

Value

 Is Avangrid undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Avangrid to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Avangrid.

DB:12A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 1.8748553333333
Payout Ratio Company Filings (2019-12-31) 9127.5%
Discount Rate (Cost of Equity) See below 4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:12A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.252 (1 + (1- 21%) (58.95%))
0.578
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 5.44%)
3.96%

Discounted Cash Flow Calculation for DB:12A using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Avangrid is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:12A Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $1.87 / (3.96% - -0.39%)
$34.81
DB:12A Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:12A represents 0.89892x of NYSE:AGR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89892x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 43.08 x 0.89892
€38.73
Value per share (EUR) From above. €38.73
Current discount Discount to share price of €40.20
= -1 x (€40.20 - €38.73) / €38.73
-3.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Avangrid is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Avangrid's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Avangrid's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:12A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.26
NYSE:AGR Share Price ** NYSE (2020-03-30) in USD $44.72
Europe Electric Utilities Industry PE Ratio Median Figure of 76 Publicly-Listed Electric Utilities Companies 10.06x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Avangrid.

DB:12A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AGR Share Price ÷ EPS (both in USD)

= 44.72 ÷ 2.26

19.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avangrid is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • Avangrid is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Avangrid's expected growth come at a high price?
Raw Data
DB:12A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
7.2%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 37 Publicly-Listed Electric Utilities Companies 1.48x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

DB:12A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.77x ÷ 7.2%

2.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avangrid is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Avangrid's assets?
Raw Data
DB:12A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $49.31
NYSE:AGR Share Price * NYSE (2020-03-30) in USD $44.72
Europe Electric Utilities Industry PB Ratio Median Figure of 87 Publicly-Listed Electric Utilities Companies 0.77x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:12A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AGR Share Price ÷ Book Value per Share (both in USD)

= 44.72 ÷ 49.31

0.91x

* Primary Listing of Avangrid.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avangrid is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess Avangrid's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Avangrid has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Avangrid expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Avangrid expected to grow at an attractive rate?
  • Avangrid's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Avangrid's earnings growth is positive but not above the Germany market average.
  • Avangrid's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:12A Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:12A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 7.2%
DB:12A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 9.3%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:12A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:12A Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 7,756 2,050 948 1
2023-12-31 7,572 2,007 905 1
2022-12-31 7,103 1,983 842 3
2021-12-31 6,900 1,934 774 6
2020-12-31 6,603 1,792 646 6
2020-03-30
DB:12A Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 6,338 1,593 700
2019-09-30 6,394 1,718 596
2019-06-30 6,453 1,625 571
2019-03-31 6,455 1,509 568
2018-12-31 6,478 1,791 595
2018-09-30 6,346 1,758 399
2018-06-30 6,141 1,821 373
2018-03-31 6,070 1,919 386
2017-12-31 5,963 1,763 381
2017-09-30 5,921 1,669 667
2017-06-30 5,998 1,580 677
2017-03-31 6,106 1,606 659

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Avangrid's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Avangrid's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:12A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Avangrid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:12A Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 3.06 3.06 3.06 1.00
2023-12-31 2.92 2.92 2.92 1.00
2022-12-31 2.82 2.82 2.82 1.00
2021-12-31 2.55 2.71 2.39 2.00
2020-12-31 2.04 2.07 2.01 2.00
2020-03-30
DB:12A Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.26
2019-09-30 1.93
2019-06-30 1.84
2019-03-31 1.84
2018-12-31 1.92
2018-09-30 1.29
2018-06-30 1.21
2018-03-31 1.25
2017-12-31 1.23
2017-09-30 2.16
2017-06-30 2.19
2017-03-31 2.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Avangrid is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Avangrid's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Avangrid has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Avangrid performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Avangrid's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Avangrid's year on year earnings growth rate has been positive over the past 5 years.
  • Avangrid's 1-year earnings growth exceeds its 5-year average (17.6% vs 11.2%)
  • Avangrid's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (17.6% vs 7.2%).
Earnings and Revenue History
Avangrid's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Avangrid Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:12A Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 6,338.00 700.00 79.00
2019-09-30 6,394.00 596.00 100.00
2019-06-30 6,453.00 571.00 108.00
2019-03-31 6,455.00 568.00 122.00
2018-12-31 6,478.00 595.00 128.00
2018-09-30 6,346.00 399.00 128.00
2018-06-30 6,141.00 373.00 164.00
2018-03-31 6,070.00 386.00 122.00
2017-12-31 5,963.00 381.00 120.00
2017-09-30 5,921.00 667.00 57.00
2017-06-30 5,998.00 677.00
2017-03-31 6,106.00 659.00 19.00
2016-12-31 6,018.00 632.00
2016-09-30 5,680.00 519.00
2016-06-30 5,310.00 464.00
2016-03-31 4,810.00 373.00
2015-12-31 4,367.00 273.00
2015-09-30 4,332.00 268.00
2015-06-30 4,266.00 278.00
2015-03-31 4,265.00 330.00
2014-12-31 4,594.00 424.00
2014-09-30 5,346.97 11.91
2014-06-30 5,152.33 32.51
2014-03-31 4,799.96 396.31 1,129.72
2013-12-31 4,313.00 -51.00
2013-09-30 3,258.36 259.40
2013-06-30 3,215.70 246.81
2013-03-31 3,148.94 225.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Avangrid has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Avangrid used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • Avangrid's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Avangrid's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Avangrid has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Avangrid's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Avangrid's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Avangrid's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Avangrid's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Avangrid's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Avangrid Company Filings, last reported 2 months ago.

DB:12A Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 15,586.00 8,006.00 178.00
2019-09-30 15,518.00 7,571.00 103.00
2019-06-30 15,549.00 7,189.00 166.00
2019-03-31 15,456.00 6,646.00 33.00
2018-12-31 15,403.00 6,276.00 36.00
2018-09-30 15,455.00 6,161.00 32.00
2018-06-30 15,468.00 5,907.00 52.00
2018-03-31 15,319.00 6,071.00 40.00
2017-12-31 15,096.00 6,124.00 41.00
2017-09-30 15,217.00 5,796.00 27.00
2017-06-30 15,241.00 5,428.00 36.00
2017-03-31 15,252.00 5,227.00 30.00
2016-12-31 15,208.00 5,048.00 94.00
2016-09-30 15,051.00 4,618.00 182.00
2016-06-30 15,065.00 4,708.00 396.00
2016-03-31 15,124.00 4,721.00 403.00
2015-12-31 15,066.00 4,931.00 438.00
2015-09-30 12,647.00 2,967.00 1,050.00
2015-06-30 12,576.00 2,954.00 985.00
2015-03-31 12,563.00 2,757.00 655.00
2014-12-31 12,477.00 2,662.00 507.00
2014-09-30 10,898.10 3,034.39 821.36
2014-06-30 10,860.72 3,078.66 844.62
2014-03-31 10,634.69 3,112.94 544.08
2013-12-31 12,030.00 2,735.00 242.00
2013-09-30 4,014.47 3,216.34 11.68
2013-06-30 3,927.68 3,175.00 17.75
2013-03-31 3,853.02 3,382.17 49.63
  • Avangrid's level of debt (51.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.3% vs 51.4% today).
  • Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Avangrid's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Avangrid has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Avangrid's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.94%
Current annual income from Avangrid dividends. Estimated to be 4.19% next year.
If you bought €2,000 of Avangrid shares you are expected to receive €79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Avangrid's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Avangrid's dividend is below the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:12A Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 50 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:12A Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 1.76 1.00
2023-12-31 1.76 1.00
2022-12-31 1.92 4.00
2021-12-31 1.88 5.00
2020-12-31 1.87 4.00
2020-03-30
DB:12A Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-19 1.760 3.677
2019-07-16 1.760 3.491
2019-04-11 1.760 3.465
2019-02-13 1.760 3.550
2018-12-03 1.760 3.520
2018-07-11 1.760 3.571
2018-04-25 1.728 3.316
2018-02-15 1.728 3.465
2017-12-01 1.728 3.496
2017-07-06 1.728 3.605
2017-04-20 1.728 3.875
2017-02-16 1.728 4.032
2016-12-02 1.728 4.505
2016-07-14 1.728 4.211
2016-04-20 1.728 4.087
2016-02-22 1.728 4.418

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Avangrid has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Avangrid only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Avangrid's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Avangrid's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Avangrid afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Avangrid has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Avangrid's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Torgerson
COMPENSATION $5,709,436
AGE 67
TENURE AS CEO 4.3 years
CEO Bio

Mr. James P. Torgesrson, also known as Jim, has been Chief Executive Officer at Avangrid, Inc. since December 16, 2015. Mr. Torgesrson has financial and business experience. He served as an Executive Director of UIL Holdings Corp., since October 2006 until December 16, 2015. He served as the President of UIL Holdings Corporation from January 23, 2006 to December 16, 2015 and served as its Chief Executive Officer from July 1, 2006 to December 16, 2015. Mr. Torgesrson served as the Chief Executive Officer of the United Illuminating Company, a subsidiary of UIL Holdings Corporation from April 24, 2006 to December 16, 2015 and served as its President from January 2013 to December 16, 2015. He is a proven leader in finance, organization design and executive management. He served as an Executive Vice President, Chief Administrative Officer and Chief Financial Officer of Washington Natural Gas Company. He served as the Chief Administrative Officer and Chief Financial Officer of Midwest Independent Transmission System Operator Inc. (ISO). He served as the Chief Executive Officer and President of Midwest Independent Transmission System Operator Inc. (alternate name Midcontinent Independent System Operator, Inc.) from December 2000 to January 2005. He served as Vice President and Chief Financial Officer of DPL Inc., the holding company of Dayton Power and Light and Puget Sound Energy, Inc. Mr. Torgesrson served as an Executive Vice President and Chief Administrative Officer of Washington Energy Co., since August 1995 and served as its Chief Financial Officer since February 1990. He served as Senior Vice President of Finance, Planning and Development of Washington Energy Co. from February 1990 to August 1995. He serves as the Chairman of The Southern Connecticut Gas Company. Mr. Torgerson is the Chairman of the Connecticut Institute for the 21st Century. He had been the Chairman and Director of The United Illuminating Company since November 16, 2010. He served as Chairman and z Director of the Connecticut Business and Industry Association. He has been a Director at Avangrid, Inc. since December 16, 2015. He serves as Director of Yale-New Haven Health Services Corporation. He is the executive committee member of the Edison Electric Institute and the American Gas Association, and trustee of the Hartford Bishops’ Foundation for the Archdiocese of Hartford. He serves as a Director of Midwest Independent Transmission System Operator, Inc. He serves as a Trustee of Yale-New Haven Hospital, Inc. Mr. Torgerson is a Trustee of the Hartford Bishops' Foundation. He served as Chairman of the ISO/RTO Council, a voluntary organization comprised of the highest-ranking full-time executives of North America's Independent System Operators and Regional Transmission Organizations. Mr. Torgesrson received a Bachelor of Business Administration in Accounting from Cleveland State University. He has considerable public company financial, accounting and executive leadership experience and expertise in utility operations and ratemaking.

CEO Compensation
  • Jim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Jim's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Avangrid management team in years:

4.3
Average Tenure
56
Average Age
  • The tenure for the Avangrid management team is about average.
Management Team

Jim Torgerson

TITLE
CEO & Director
COMPENSATION
$6M
AGE
67
TENURE
4.3 yrs

Bob Kump

TITLE
Deputy CEO & President
COMPENSATION
$2M
AGE
58
TENURE
0.8 yrs

Douglas Stuver

TITLE
Senior VP & CFO
COMPENSATION
$993K
AGE
55
TENURE
1.7 yrs

Peter Church

TITLE
Senior VP of Human Resources & Corporate Administration
COMPENSATION
$1M
AGE
46
TENURE
1.4 yrs

R. Mahoney

TITLE
Senior VP
COMPENSATION
$1M
AGE
53
TENURE
4.3 yrs

Patricia Cosgel

TITLE
Vice President Investor & Shareholder Relations

Ignacio Estella

TITLE
Senior Vice President of Corporate Development
AGE
49
TENURE
4.3 yrs

F. McClain

TITLE
Chief Development Officer
COMPENSATION
$2M
AGE
70
TENURE
19.4 yrs

Karen Zink

TITLE
President & COO of the Berkshire Gas Co.
AGE
62
TENURE
16.2 yrs

Douglas Herling

TITLE
President & CEO of CMP
AGE
56
Board of Directors Tenure

Average tenure and age of the Avangrid board of directors in years:

4.3
Average Tenure
66.5
Average Age
  • The tenure for the Avangrid board of directors is about average.
Board of Directors

José Ignacio Galán

TITLE
Chairman of the Board
COMPENSATION
$200K
AGE
69

Jim Torgerson

TITLE
CEO & Director
COMPENSATION
$6M
AGE
67
TENURE
4.3 yrs

John Baldacci

TITLE
Vice Chairman of the Board
COMPENSATION
$200K
AGE
64

David Flanagan

TITLE
Executive Chairman of CMP
AGE
71

Alan Solomont

TITLE
Independent Non-Executive Director
COMPENSATION
$200K
AGE
70
TENURE
6.2 yrs

Pedro Azagra Blázquez

TITLE
Director
COMPENSATION
$140K
AGE
51
TENURE
0.3 yrs

Jose Sáinz Armada

TITLE
Director
COMPENSATION
$140K
AGE
60
TENURE
6.2 yrs

Santiago Martínez Garrido

TITLE
Director
COMPENSATION
$140K
AGE
51
TENURE
5 yrs

John Lahey

TITLE
Independent Non-Executive Director
COMPENSATION
$170K
AGE
72
TENURE
4.3 yrs

Elizabeth Timm

TITLE
Independent Director
COMPENSATION
$170K
AGE
66
TENURE
3.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
29. Jul 19 Buy Teresa Ellen Herbert Individual 26. Jul 19 26. Jul 19 1,000 €44.02 €44,022
X
Management checks
We assess Avangrid's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Avangrid has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company 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, it 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. As of February 26, 2019, Avangrid, Inc. owned 8 electric and natural gas utilities, serving 3.2 million customers in New York and New England, as well as owned and operated 7.2 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

Details
Name: Avangrid, Inc.
12A
Exchange: DB
Founded: 1852
$12,525,283,968
309,005,272
Website: http://www.avangrid.com
Address: Avangrid, Inc.
180 Marsh Hill Road,
Orange,
Connecticut, 06477,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AGR New Common Stock New York Stock Exchange US USD 17. Dec 2015
DB 12A New Common Stock Deutsche Boerse AG DE EUR 17. Dec 2015
BRSE 12A New Common Stock Berne Stock Exchange CH CHF 17. Dec 2015
Number of employees
Current staff
Staff numbers
6,597
Avangrid employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 23:45
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/03/02
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.