Assured Guaranty Profitability Analysis
| AGO Stock | USD 92.38 0.26 0.28% |
Net Income | First Reported 2002-12-31 | Previous Quarter 78 M | Current Value 171 M | Quarterly Volatility 181.2 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.84 | 0.89 |
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| Net Profit Margin | 0.36 | 0.7 |
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| Operating Profit Margin | 0.47 | 0.66 |
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| Pretax Profit Margin | 0.46 | 0.63 |
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| Return On Assets | 0.04 | 0.0678 |
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| Return On Equity | 0.0692 | 0.12 |
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For Assured Guaranty profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Assured Guaranty to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Assured Guaranty utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Assured Guaranty's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Assured Guaranty over time as well as its relative position and ranking within its peers.
Assured |
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Assured Guaranty. If investors know Assured will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Assured Guaranty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.219 | Dividend Share 1.21 | Earnings Share 12.75 | Revenue Per Share | Quarterly Revenue Growth 0.01 |
The market value of Assured Guaranty is measured differently than its book value, which is the value of Assured that is recorded on the company's balance sheet. Investors also form their own opinion of Assured Guaranty's value that differs from its market value or its book value, called intrinsic value, which is Assured Guaranty's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Assured Guaranty's market value can be influenced by many factors that don't directly affect Assured Guaranty's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Assured Guaranty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Assured Guaranty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Assured Guaranty's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Assured Guaranty Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Assured Guaranty's current stock value. Our valuation model uses many indicators to compare Assured Guaranty value to that of its competitors to determine the firm's financial worth. Assured Guaranty is rated fourth in return on equity category among its peers. It is number one stock in return on asset category among its peers reporting about 0.20 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Assured Guaranty is roughly 4.93 . At this time, Assured Guaranty's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Assured Guaranty's earnings, one of the primary drivers of an investment's value.Assured Guaranty's Earnings Breakdown by Geography
Assured Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Assured Guaranty |
| = | 0.14 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Assured Guaranty |
| = | 0.0274 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Assured Return On Asset Comparison
Assured Guaranty is currently under evaluation in return on asset category among its peers.
Assured Guaranty Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Assured Guaranty, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Assured Guaranty will eventually generate negative long term returns. The profitability progress is the general direction of Assured Guaranty's change in net profit over the period of time. It can combine multiple indicators of Assured Guaranty, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -412.9 M | -392.2 M | |
| Operating Income | 592.2 M | 564.1 M | |
| Income Before Tax | 649.8 M | 540.1 M | |
| Total Other Income Expense Net | 38.7 M | 30.4 M | |
| Net Income | 849.9 M | 463.1 M | |
| Income Tax Expense | 116.2 M | 109.8 M | |
| Net Income Applicable To Common Shares | 142.6 M | 135.5 M | |
| Net Income From Continuing Ops | 417.6 M | 658 M | |
| Interest Income | 138 M | 114.1 M | |
| Net Interest Income | -101.2 M | -106.3 M | |
| Non Operating Income Net Other | -35.1 M | -33.3 M | |
| Change To Netincome | 116.2 M | 122 M | |
| Net Income Per Share | 11.39 | 11.96 | |
| Income Quality | 0.72 | 0.75 | |
| Net Income Per E B T | 1.00 | 0.64 |
Assured Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Assured Guaranty. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Assured Guaranty position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Assured Guaranty's important profitability drivers and their relationship over time.
Assured Guaranty Profitability Trends
Assured Guaranty profitability trend refers to the progression of profit or loss within a business. An upward trend means that Assured Guaranty's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Assured Guaranty's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Assured Guaranty Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Assured Guaranty different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Assured Guaranty in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Assured Guaranty's future profitability.
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To fully project Assured Guaranty's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Assured Guaranty at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Assured Guaranty's income statement, its balance sheet, and the statement of cash flows.