Assured Guaranty Intrinsic Value Calculation – ASSURED GUARANTY Reports Third Quarter Earnings Results for FY2023
November 23, 2023
☀️Earnings Overview
On November 7 2023, ASSURED GUARANTY ($NYSE:AGO) reported its earnings results for the third quarter of FY2023, ended on September 30 of the same year. The company earned total revenue of USD 146.0 million, up from USD 22.0 million in the same period of the prior year. Net income for this quarter was USD 157.0 million, compared to USD 11.0 million for the same period of the previous year.
Stock Price
In the stock market, ASSURED GUARANTY opened at $65.1 and closed at $64.3, which was a decrease of 1.6% from the previous day’s closing price of $65.4. This decrease in stock price indicates a lower financial performance for the company in the third quarter. ASSURED GUARANTY provides financial guarantees for municipal bonds and other types of debt. In order to guarantee the bonds, it has to have enough assets and resources to cover potential losses that may occur.
This is why investors should pay close attention to the company’s quarterly earnings reports to see if it has sufficient resources to provide such guarantees. ASSURED GUARANTY’s earnings report is an important indicator of its financial performance in the current fiscal year. The company’s stock price may continue to fluctuate based on their financial results, so it is important for investors to stay up-to-date with the latest news and reports in order to make informed decisions about their investments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Assured Guaranty. More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | 453 | 23.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Assured Guaranty. More…
| Operations | Investing | Financing |
| -373 | 795 | -576 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Assured Guaranty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.94k | 6.64k | 90.83 |
Key Ratios Snapshot
Some of the financial key ratios for Assured Guaranty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.1% | – | 62.9% |
| FCF Margin | ROE | ROA |
| -35.9% | 7.8% | 3.4% |
Analysis – Assured Guaranty Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of ASSURED GUARANTY‘s financials. After evaluating the most recent market performance and financial data, our proprietary Valuation Line gave us an intrinsic value of ASSURED GUARANTY share of around $78.2. Currently, ASSURED GUARANTY stock is being traded at $64.3, suggesting that the stock is currently undervalued by 17.7%. This presents a great opportunity for investors who are looking to add this stock to their portfolio. More…
Peers
The Company’s principal subsidiaries include Assured Guaranty Municipal Corp, which provides financial guarantees for municipal bonds, and Assured Guaranty Re Ltd, which provides reinsurance for credit enhancement providers. The Company’s competitors include MBIA Inc, Menora Mivtachim Holdings Ltd, American Overseas Group Ltd, among others.
– MBIA Inc ($NYSE:MBI)
MBIA Inc is a holding company that, through its subsidiaries, provides financial guarantee insurance services in the United States and internationally. The company has a market cap of $547.9 million and a return on equity of 20.66%. MBIA Inc operates in two segments: Insurance Services and Financial Services. The Insurance Services segment provides financial guarantees for bonds, notes, and other obligations issued by municipalities, utilities, school districts, housing authorities, and various other governmental entities and public finance sectors. The Financial Services segment offers investment management, loan servicing, and real estate services.
– Menora Mivtachim Holdings Ltd ($OTCPK:MNRHF)
Menora Mivtachim Holdings Ltd is an Israeli conglomerate with interests in insurance, banking, and investment. The company has a market capitalization of 1.2 billion as of 2022 and a return on equity of 9.76%. Menora Mivtachim Holdings is a publicly traded company on the Tel Aviv Stock Exchange. The company was founded in 1934 and is headquartered in Tel Aviv, Israel.
– American Overseas Group Ltd ($OTCPK:AOREF)
AOG is a Bermuda-based holding company engaged in the insurance and reinsurance businesses through its subsidiaries. The Company’s segments include Property and Casualty, which provides insurance and reinsurance products for commercial and personal lines of business; Specialty, which provides insurance and reinsurance products for specialty lines of business, such as professional liability, surety, political risk, and medical malpractice; and Life, which provides life insurance products.
Summary
ASSURED GUARANTY‘s third quarter of FY2023 has been a period of strong growth for the company. Total revenue increased to USD 146.0 million, up from USD 22.0 million in the same period of the previous year. Net income for the quarter was USD 157.0 million, up from USD 11.0 million in the same period of the prior year.
This highlights ASSURED GUARANTY’s sound financial fundamentals, and makes it an attractive investment opportunity for investors looking to capitalize on high-growth potential. With solid revenue and net income growth, ASSURED GUARANTY looks to be in a strong position to reap further gains in the future.
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