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AGO Assured Guaranty Ltd. - Fundamental Analysis

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AGO Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Specialty
Current Price Live
$83.26
Analyst Target
$107.0
+28.5% Upside
52W High
$96.5
52W Low
$74.09

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Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a weak Piotroski F-Score of 3/9, indicating poor financial health, while the absence of an Altman Z-Score prevents a definitive distress risk assessment. Despite this, AGO trades below the Graham Number of $148.07 at $83.26, suggesting potential undervaluation, supported by a low P/E of 10.36 versus sector average of 22.56. However, declining earnings growth (YoY: -31.20%) and negative insider sentiment counterbalance value appeal. Analysts recommend a 'buy' with a $107.00 target, implying upside, but inconsistent quarterly execution and bearish technical trend temper near-term optimism.

Key Strengths

Significantly undervalued relative to Graham Number ($148.07 vs. current price $83.26)
Low valuation multiples: P/E of 10.36 well below sector average of 22.56
Exceptionally high profitability margins: Gross (90.34%), Operating (67.14%), and Net (44.13%)
Low Debt/Equity ratio of 0.30, well below sector average of 1.64, indicating conservative leverage
Strong dividend coverage with low payout ratio of 16.30% despite modest yield

Key Risks

Very weak Piotroski F-Score of 3/9 signals deteriorating financial health and operational instability
Earnings under pressure: YoY earnings growth down 31.20% and Q/Q down 38.60%
Absence of Altman Z-Score limits ability to assess bankruptcy risk; requires caution
Bearish insider activity: $5.36M in executive sales with zero buys in last 6 months
Technical trend at 0/100 indicates strong bearish momentum in price action
AI Fair Value Estimate
Based on comprehensive analysis
$107.0
+28.5% above current price

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