Business Analysis of AVANGRID

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of AVANGRID

AVANGRID

Business Overview

Avangrid, Inc. operates as a diversified energy and utility company in the United States. It provides electricity transmission and distribution, and natural gas distribution services. The company operates eight electric and natural gas utilities serving 3.1 million customers in Connecticut, Maine, Massachusetts, and New York; and 120 billion cubic feet of owned or contracted natural gas storage and hub service facilities in Alabama, Mississippi, New Mexico, and Texas. It also develops, constructs, and operates renewable energy generation facilities using wind, solar, and thermal power. The company, formerly known as Iberdrola USA, Inc., was founded in 1852 and is based in New Gloucester, Maine. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

AVANGRID

AVANGRID


R&P Rank: 443
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Connecticut
Website: www.avangrid.com
Company Address:
157 CHURCH STREET, NEW HAVEN CT 06506
Ph:207-688-6363

Business Analysis of AVANGRID

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how AVANGRID compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by AVANGRID to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of AVANGRID with an interactive chart.

  1. Revenue Growth: AVANGRID reported a revenue growth of 37.8% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, AVANGRID spent 66.8% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: AVANGRID R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: AVANGRID SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, AVANGRID spent 6.3% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, AVANGRID invested 24.1% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, AVANGRID invested 19.0% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, AVANGRID invested 358.1% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, AVANGRID invested 60.9% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: AVANGRID Net Margins in the year 2016 were 10.5%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of AVANGRID

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

AVANGRID is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of AVANGRID

With $6 billion revenues, AVANGRID ranked number 15 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of AVANGRIDand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of avangrid

CenterPoint Energy (CNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CenterPoint Energy Inc with $8 billion revenues in the year 2016 was the number 12 Electric Utilities company. Read this report to know the top competitors of CenterPoint Energy and identify growth and cost optimization opportunities of CenterPoint Energy

PPL (PPL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PPL Corp with $8 billion revenues in the year 2016 was the number 13 Electric Utilities company. Read this report to know the top competitors of PPL and identify growth and cost optimization opportunities of PPL

Calpine (CPN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Calpine Corp with $7 billion revenues in the year 2016 was the number 14 Electric Utilities company. Read this report to know the top competitors of Calpine and identify growth and cost optimization opportunities of Calpine

Dynegy (DYN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dynegy Inc. with $4 billion revenues in the year 2016 was the number 16 Electric Utilities company. Read this report to know the top competitors of Dynegy and identify growth and cost optimization opportunities of Dynegy

Pinnacle West Capital (PNW) Business Analysis – Analyze Historical Performance, Strategic...

Pinnacle West Capital Corp with $3 billion revenues in the year 2016 was the number 17 Electric Utilities company. Read this report to know the top competitors of Pinnacle West Capital and identify growth and cost optimization opportunities of Pinnacle West Capital

Great Plains Energy (GXP) Business Analysis – Analyze Historical Performance, Strategic...

Great Plains Energy Inc with $3 billion revenues in the year 2016 was the number 18 Electric Utilities company. Read this report to know the top competitors of Great Plains Energy and identify growth and cost optimization opportunities of Great Plains Energy

Revenues Analysis

AVANGRID (AGR) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of AVANGRID, Inc. (AGR) from 2013 to 2016. AVANGRID generated a total of $6 billion revenues during 2016. AVANGRID reported a revenue growth of 37.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AVANGRID (AGR) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of AVANGRID, Inc. (AGR) from 2013 to 2016. AVANGRID generated a total of $6 billion revenues during 2016. AVANGRID reported a revenue growth of 37.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AVANGRID (AGR) Revenue Growth Comparison With Industry Growth From 2014 To...

This report provides a comparison of AVANGRID, Inc. (AGR) revenue growth with Electric Utilities industry growth during the last three years from 2014 to 2016. AVANGRID reported a revenue growth of 37.8% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. AVANGRID growth was faster than the industry during 2016.

Profit Analysis

AVANGRID (AGR) Net Profit And Net Margin From 2014 To 2016

This report provides the last three years net profit and net margin of AVANGRID, Inc. (AGR) from 2014 to 2016. AVANGRID reported a total net income of $630 million during 2016. AVANGRID generated a total of $6 billion revenues during 2016. AVANGRID net profit margin was 10.5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.