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1. Company Snapshot

1.a. Company Description

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 through Networks and Renewables segments.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 8.8 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.

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1.b. Last Insights on AGR

Avangrid, Inc.'s recent performance was driven by its low-beta and defensive nature, making it an attractive option during market uncertainty. The company's recent mention in articles as a potential value stock, along with its inclusion in lists of bargain stocks with impressive EV-to-EBITDA ratios, highlights its potential for growth. Additionally, the filing of a class-action lawsuit against Avangrid by Monteverde & Associates PC may have contributed to its recent attention, although the lawsuit's impact on the company's performance is unclear.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Avangrid CEO Pedro Azagra Appointed CEO of The Iberdrola Group

Jun -24

Source: businesswire.com

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PHP hints at potential hostile offer Assura, says Reeves spending review changes funding picture

Jun -11

Source: proactiveinvestors.co.uk

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Avangrid Increases Investment with U.S. Suppliers to $4.3 Billion in 2024

May -06

Source: businesswire.com

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Avangrid Deploys UI Crews to Pennsylvania to Assist with Storm Response and Restoration

Apr -30

Source: businesswire.com

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Avangrid Honored as Stevie Award Winner in 2025 American Business Awards

Apr -30

Source: businesswire.com

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Avangrid Foundation and Central Maine Power join Kennebec Valley Community College to Celebrate Lineworker Program Milestone

Apr -25

Source: businesswire.com

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ICYMI: Avangrid CEO Pedro Azagra Discusses Grid Investment at Global Power Markets Conference

Apr -18

Source: businesswire.com

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Avangrid and CPS Energy Expand Relationship to Provide Energy for Another 40,000 San Antonio Residents

Apr -17

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.87%)

6. Segments

Networks

Expected Growth: 1.8%

Avangrid's 1.8% growth in Networks is driven by increasing demand for renewable energy, grid modernization, and infrastructure upgrades. Strong execution of capital projects, favorable regulatory environments, and strategic acquisitions also contribute to growth. Additionally, Avangrid's focus on electrification of transportation and heating, as well as its commitment to reducing carbon emissions, support long-term growth prospects.

Renewables

Expected Growth: 2.2%

Avangrid's 2.2% growth in Renewables is driven by increasing demand for clean energy, declining costs of wind and solar technologies, and favorable government policies and incentives. Additionally, the company's strategic investments in offshore wind and solar projects, as well as its focus on grid resiliency and energy storage, contribute to its growth momentum.

Other

Expected Growth: 1.5%

Avangrid's 1.5% growth in 'Other' segment is driven by increasing adoption of renewable energy solutions, expansion of energy storage systems, and growing demand for electric vehicle charging infrastructure, supported by favorable government policies and incentives.

7. Detailed Products

Electricity Distribution

Avangrid's electricity distribution segment provides electricity to residential, commercial, and industrial customers through its subsidiaries, including United Illuminating, Central Maine Power, and NYSEG.

Renewable Energy

Avangrid's renewable energy segment develops, constructs, and operates wind and solar farms, as well as transmission and energy storage projects.

Natural Gas Distribution

Avangrid's natural gas distribution segment provides natural gas to residential, commercial, and industrial customers through its subsidiaries, including Berkshire Gas and Central Maine Natural Gas.

Electric Transmission

Avangrid's electric transmission segment owns and operates high-voltage transmission lines and substations, connecting power plants to the grid.

Energy Services

Avangrid's energy services segment provides energy efficiency solutions, demand response, and energy management services to commercial and industrial customers.

8. Avangrid, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Avangrid, Inc. operates in the energy industry, which has a moderate threat of substitutes. While there are alternative energy sources, such as solar and wind power, they are not yet widely adopted, and traditional energy sources remain dominant.

Bargaining Power Of Customers

Avangrid, Inc. has a diverse customer base, including residential, commercial, and industrial customers. However, the bargaining power of customers is limited due to the lack of alternative energy providers in many areas.

Bargaining Power Of Suppliers

Avangrid, Inc. relies on various suppliers for fuel, equipment, and services. While suppliers have some bargaining power, Avangrid's scale and diversification mitigate this risk.

Threat Of New Entrants

The energy industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and complexity. This limits the threat of new entrants.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Avangrid, Inc. faces intense rivalry from other energy companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.31%
Debt Cost 3.95%
Equity Weight 61.69%
Equity Cost 6.68%
WACC 5.63%
Leverage 62.09%

11. Quality Control: Avangrid, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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OGE Energy

A-Score: 6.8/10

Value: 5.5

Growth: 4.1

Quality: 5.6

Yield: 8.0

Momentum: 7.5

Volatility: 10.0

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Evergy

A-Score: 6.7/10

Value: 5.5

Growth: 4.7

Quality: 4.7

Yield: 7.0

Momentum: 8.5

Volatility: 10.0

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Pinnacle West Capital

A-Score: 6.4/10

Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

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FirstEnergy

A-Score: 6.4/10

Value: 5.7

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 10.0

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PGE

A-Score: 6.1/10

Value: 6.8

Growth: 4.4

Quality: 4.1

Yield: 8.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Avangrid

A-Score: 5.2/10

Value: 6.2

Growth: 4.3

Quality: 3.8

Yield: 5.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.02$

Current Price

36.02$

Potential

-0.00%

Expected Cash-Flows