Agilon Health, Inc. (AGL)
Valuation Overview•Is Agilon Health, Inc. Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
Fragile underlying quality score of 24/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
AGL struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($137M) and minimal debt risk.
The company is driving exceptional top-line expansion (35.4% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-6.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.4B | -2.1% | +35.4% | +37.2% | — | |
| EBITDA | $10.8M | — | -62.4% | — | — | |
| Net Income | $30.0M | -55.8% | -56.1% | — | — | |
| EPS (Diluted) | $1.80 | -55.6% | — | — | — | |
| Free Cash Flow | $20.6M | -67.5% | +10.0% | -16.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | -3.7% | -0.5% | 1.5% | 2.7% |
| Operating Margin | -6.9% | -5.8% | -9.2% | -9.2% |
| Net Margin | -6.4% | -5.7% | -9.7% | -12.7% |
| FCF Margin | -1.3% | -2.5% | -5.0% | -6.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.13 | $1.80 | +59.3% | ||
| Q1'26 | $-6.75 | $-11.50 | -70.4% | ||
| Q4'25 | $-0.18 | $-0.27 | -50.0% | ||
| Q3'25 | $-0.11 | $-0.25 | -127.3% | ||
| Q2'25 | $-0.01 | $0.03 | +393.3% | ||
| Q1'25 | $-0.18 | $-0.25 | -38.9% | ||
| Q4'24 | $-0.10 | $-0.29 | -190.0% | ||
| Q3'24 | $-1.75 | $-1.75 | +0.0% |
Total return is +108.8% (1Y), outperforming the benchmark by +83.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +575.8% | +566.5% | — |
| 1Y | +108.8% | +83.8% | — |
| 3YCAGR | -35.8% | -57.1% | — |
| 5YCAGR | -36.3% | -49.6% | — |
| 10YCAGR | -17.5% | -31.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Agilon Health, Inc. (AGL) valuation, health, and returns.
Agilon Health, Inc. is estimated to be overvalued under our discounted cash flow framework. overvalued (implying -67.3% downside from DCF intrinsic value of $37.21)
Agilon Health, Inc. has multiple valuation anchors: DCF Intrinsic Value: $37.21 | Wall Street Analyst Target: $53.20 (implying -53.3% upside). A convergence of these signals offers higher conviction.
Agilon Health, Inc. displays weak financial health with a composite quality score of 24/100, supported by a Altman Z-Score of 2.3 (grey zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of -203.2%.
Agilon Health, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Agilon Health, Inc.'s current growth trajectory is Decelerating. The company achieved -2.1% 1Y revenue growth and -55.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +35.4%.
Wall Street consensus is Hold based on 25 analysts, beating EPS expectations in 25% of recent quarters with a 1-quarter streak. The consensus price target represents a -53.3% change from current levels.
Investment risks for Agilon Health, Inc. include: -98.4% 1-year max drawdown, high beta (3.19x market volatility). Volatility risk is characterized by a beta of 3.19x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.