Interested In Avangrid, Inc. (NYSE:AGR)? Here's What Its Recent Performance Looks Like
Understanding Avangrid, Inc.'s (NYSE:AGR) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Avangrid is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.
See our latest analysis for Avangrid
Commentary On AGR's Past Performance
AGR's trailing twelve-month earnings (from 31 December 2019) of US$700m has jumped 18% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which AGR is growing has accelerated. How has it been able to do this? Let's see if it is solely because of an industry uplift, or if Avangrid has experienced some company-specific growth.
In terms of returns from investment, Avangrid has fallen short of achieving a 20% return on equity (ROE), recording 4.3% instead. Furthermore, its return on assets (ROA) of 2.9% is below the US Electric Utilities industry of 4.1%, indicating Avangrid's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Avangrid’s debt level, has declined over the past 3 years from 4.2% to 3.1%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 21% to 51% over the past 5 years.
What does this mean?
Though Avangrid's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Avangrid to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for AGR’s future growth? Take a look at our free research report of analyst consensus for AGR’s outlook.
Financial Health: Are AGR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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