Stock Spotlight: AGL Energy Limited (ASX:AGL)

This week's Stock Spotlight is ASX-listed AGL Energy Limited.


About AGL Energy Limited.


AGL Energy Limited engages in the supply of energy and other essential services to residential, business, and wholesale customers in Australia. The company operates through three segments: Customer Markets, Integrated Energy, and Investments. It engages in the retail of electricity and gas; retail of broadband, mobile, and voice services; and provision of solar and energy products and services. The company is also involved in the sale, marketing, and brand activities, as well as operation of customer contact and call centres. In addition, it generates and stores electricity through wind, hydro, solar, and coal and gas-fired plants, as well as grid-scale batteries and other firming technologies; production, storage, and sale of natural gas; and development projects. The company was founded in 1837 and is based in Sydney, Australia.



Source: Yahoo Finance



Key Stats

Source: Yahoo Finance, ASX. Data as of 23/08/24.


Price Performance

Growth Potential

  • Higher or sustained pool prices – long-term tailwinds from step change in data centre pipeline
  • Energy margins bottom out and could potentially start to improve (higher customer and volume numbers).
  • Strong cash flow business which provided flexibility to deploy cash in growth opportunities and capital management.
  • On-going focus on cost reductions and digitalisation should support margins.
  • Potential capital management initiatives (e.g., buyback).
  • Potential favourable changes to the regulatory environment and government policy leading to improved support for the industry.
  • Potential corporate activity.

Key Risks


  • Increased competitive pressures (potentially from new entrants) leading to margin erosion.
  • Cost pressure and fuel supply issues lead to margin erosion.
  • Increase in supply leading to depressed prices.
  • Regulatory risk (policy uncertainty), such recent regulation in electricity markets [Victorian Default Offer (VDO) and Default Market Offer (DMO)]
  • Un-scheduled shutdowns impacting earnings.

Subscribe to our newsletter

Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.

Is a Share Advisor

right for you?

By Iqtidar Rahman April 9, 2025
When navigating during uncertain or volatile market conditions, investment portfolios should prioritise caution and flexibility. Holding a healthy cash position is essential as the saying goes ‘cash is king’. Certainly, during frequently shifting market sentiment, facilitating readiness to act when genuine opportunities arise is crucial. For new investments, confirmation of trend reversals or stability before entering positions is a strategy to avoid catching falling knives. For new investments, waiting for confirmation of trend reversals or market stability before entering positions is a prudent strategy to avoid catching falling knives. Implementing a dollar-cost averaging (DCA) approach enables positions to be built gradually, helping to mitigate the effects of market volatility and emotional decision-making. A balanced investment strategy assists in managing risk while positioning a portfolio to capitalise on potential rebounds.
April 7, 2025
Get the latest BHP Group Ltd (ASX:BHP) stock updates, technical analysis, market forecasts & investment insights. See if BHP is the right stock for you today.
By Iqtidar Rahman April 7, 2025
Gold is once again making headlines in 2025 as its value has risen to unprecedented levels since the start of the year. It recently surpassed $3000 USD per ounce as investors flock to its time tested safe-haven appeal. This isn’t just another bull run, a powerful combination of geopolitical shifts, inflation fears, and changing market dynamics is fuelling what could be gold's most significant rally in decades.
April 7, 2025
Get the latest Commowealth Bank Of Australia (ASX:CBA) stock updates, technical analysis, forecasts & investment insights. See if CBA is the right stock for you.
By Iqtidar Rahman March 17, 2025
When US stocks plummeted by almost 4%, with NVDA down by 7% and Apple down by 4%, Bitcoin dropped by almost 15%. Why did this happen? 
March 17, 2025
Get the latest CSL Limited (ASX: CSL) stock updates, technical analysis, expert forecasts & investment insights. See if CSL is the right stock for you!
By Iqtidar Rahman March 10, 2025
The global financial landscape has been rocked by escalating trade tensions, with US policies under President Donald Trump causing significant market fluctuations. Investors worldwide are grappling with uncertainty as tariff threats, economic instability, and geopolitical risks weigh heavily on equity markets. This article explores the effects of these factors on both the Australian Securities Exchange (ASX) and US equity markets.
February 21, 2025
This week's Stock Spotlight is NYSE-listed Wells Fargo & Company. About Wells Fargo & Company. Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services, such as corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor. The company was founded in 1852 and is headquartered in San Francisco, California. Source: Yahoo Finance Key Stats
February 20, 2025
Self-Managed Super Funds (SMSFs) are a powerful way for Australians to take control of their retirement savings. But to achieve long-term growth and financial security, SMSF investors need the right strategy—one that includes both Australian and US shares. At Sharewise, we specialise in helping SMSF investors navigate both ASX and US markets with expert research, low-cost execution, and tax-efficient investment strategies.
February 19, 2025
This week's Stock Spotlight is NYSE-listed Taiwan Semiconductor Manufacturing Company Limited. About Taiwan Semiconductor Manufacturing Company Limited. Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.  Source: Yahoo Finance Key Stats