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AGO (Assured Guaranty) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is Assured Guaranty Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Assured Guaranty has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Assured Guaranty's Piotroski F-Score or its related term are showing as below:

AGO' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of Assured Guaranty was 7. The lowest was 2. And the median was 5.


Assured Guaranty Piotroski F-Score Historical Data

The historical data trend for Assured Guaranty's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Assured Guaranty Piotroski F-Score Chart

Assured Guaranty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 4.00 4.00 3.00 7.00

Assured Guaranty Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 5.00 7.00 7.00 6.00

Competitive Comparison of Assured Guaranty's Piotroski F-Score

For the Insurance - Specialty subindustry, Assured Guaranty's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Assured Guaranty's Piotroski F-Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Assured Guaranty's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Assured Guaranty's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 157 + 376 + 109 + 78 = $720.0 Mil.
Cash Flow from Operations was -178 + 203 + -74 + 58 = $9.0 Mil.
Revenue was 146 + 282 + 226 + 192 = $846.0 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(16852 + 11944 + 12539 + 12168 + 12088) / 5 = $13118.2 Mil.
Total Assets at the begining of this year (Jun23) was $16,852.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,696.0 Mil.
Total Assets was $12,088.0 Mil.
Total Liabilities was $6,493.0 Mil.
Net Income was 11 + 94 + 81 + 125 = $311.0 Mil.

Revenue was 22 + 305 + 230 + 357 = $914.0 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(16960 + 16660 + 16843 + 16778 + 16852) / 5 = $16818.6 Mil.
Total Assets at the begining of last year (Jun22) was $16,960.0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,677.0 Mil.
Total Assets was $16,852.0 Mil.
Total Liabilities was $11,397.0 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Assured Guaranty's current Net Income (TTM) was 720.0. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Assured Guaranty's current Cash Flow from Operations (TTM) was 9.0. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=720/16852
=0.0427249

ROA (Last Year)=Net Income/Total Assets (Jun22)
=311/16960
=0.01833726

Assured Guaranty's return on assets of this year was 0.0427249. Assured Guaranty's return on assets of last year was 0.01833726. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Assured Guaranty's current Net Income (TTM) was 720.0. Assured Guaranty's current Cash Flow from Operations (TTM) was 9.0. ==> 9.0 <= 720.0 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=1696/13118.2
=0.12928603

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=1677/16818.6
=0.09971103

Assured Guaranty's gearing of this year was 0.12928603. Assured Guaranty's gearing of last year was 0.09971103. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun24)=Total Assets/Total Liabilities
=12088/6493
=1.86169721

Current Ratio (Last Year: Jun23)=Total Assets/Total Liabilities
=16852/11397
=1.47863473

Assured Guaranty's current ratio of this year was 1.86169721. Assured Guaranty's current ratio of last year was 1.47863473. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Assured Guaranty's number of shares in issue this year was 55. Assured Guaranty's number of shares in issue last year was 60.1. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=720/846
=0.85106383

Net Margin (Last Year: TTM)=Net Income/Revenue
=311/914
=0.34026258

Assured Guaranty's net margin of this year was 0.85106383. Assured Guaranty's net margin of last year was 0.34026258. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=846/16852
=0.05020176

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=914/16960
=0.05389151

Assured Guaranty's asset turnover of this year was 0.05020176. Assured Guaranty's asset turnover of last year was 0.05389151. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+1+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Assured Guaranty has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Assured Guaranty  (NYSE:AGO) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Assured Guaranty Piotroski F-Score Related Terms

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Assured Guaranty Business Description

Traded in Other Exchanges
Address
Woodbourne Avenue, Hamilton, BMU, HM 08
Assured Guaranty Ltd. provides credit protection products to the United States and international public finance and structured finance markets, and manages assets across collateralized loan obligations as well as opportunity funds and liquid funds that build on its corporate credit, asset-based finance, municipal and healthcare experience. The company is operating in two segments Insurance segment and the Asset Management segment. The majority of the revenue earned by the company from the Insurance segment.
Executives
Dominic Frederico director, officer: Deputy Chairman/President/CEO ACE LTD, ACE BLDG 30 WOODBOURNE AVE HAMILTON BER
Robert Bailenson officer: Chief Accounting Officer ASSURED GUARANTY LTD., 30 WOODBOURNE AVENUE, HAMILTON D0 HM08
Laura Bieling officer: Chief Accounting Officer* 30 WOODBOURNE AVE., 5TH FLOOR, HAMILTON D0 D0 HM08
G Lawrence Buhl director 30 WOODBOURNE AVE, C/O ASSURED GUARANTY LTD, HAMILTON BERMUDA D0 0000
Stephen Donnarumma officer: Chief Credit Officer 30 WOODOURNE AVENUE, HAMILTON D0 HM08
Jorge A. Gana officer: Chief Risk Officer 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Howard Albert officer: Chief Risk Officer 31 WEST 52ND STREET, NEW YORK NY 10019
David A. Buzen officer: Head of Asset Management* 850 3RD AVENUE, NEW YORK NY 10022
Holly Horn officer: Chief Surveillance Officer 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Brewer Russell B. Ii officer: Chief Surveillance Officer 31 WEST 52ND STREET, NEW YORK NY 10019
Shea Courtney C. director 1555 N. ASTOR STREET, APARTMENT 9W, CHICAGO IL 60610
Michelle Mccloskey director C/O ALLIANCEBERNSTEIN LP, 9TH FLOOR, NEW YORK NY 10105
Lorin Radtke director 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Thomas W Jones director ALTRIA GROUP INC, 6601 WEST BROAD STREET, RICHMOND VA 23230
Andrew T Feldstein officer: Chief Investment Officer 280 PARK AVENUE, 5TH FLOOR EAST, NEW YORK NY 10017