ALAMOS GOLD INC-CLASS A (NYSE:AGI) - A Strong Growth Stock with Reasonable Valuation

ALAMOS GOLD INC-CLASS A (NYSE:AGI) was identified as an affordable growth stock by our screener. The company demonstrates solid growth potential while maintaining reasonable valuation metrics. Its profitability and financial health also support its appeal for investors seeking growth at a sensible price.

Growth Prospects

• Strong Historical Growth: AGI’s earnings per share (EPS) grew by 51.85% over the past year, with an average annual EPS growth of 29.78% in recent years. Revenue also expanded by 33.63% in the last year.
• Positive Future Outlook: Analysts expect EPS to grow by 33.73% annually, with revenue projected to increase by 17.19% per year.
• Stable Growth Trends: The company’s growth trajectory remains consistent, with no signs of significant slowdown in the near term.

Valuation Considerations

• Reasonable Forward P/E: AGI trades at a forward P/E of 16.01, below both the industry average (28.40) and the S&P 500 (20.89).
• Attractive PEG Ratio: The stock’s low PEG ratio suggests its valuation accounts for expected earnings growth, making it relatively cheap compared to peers.
• Price-to-Free Cash Flow: AGI’s price-to-free cash flow ratio is favorable, ranking better than 62% of industry competitors.

Profitability & Financial Health

• High Profit Margins: AGI boasts an 18.36% profit margin and a 36.95% operating margin, outperforming most peers.
• Solid Balance Sheet: The company has a low debt-to-equity ratio (0.07) and a healthy Altman-Z score (4.01), indicating financial stability.
• Minor Liquidity Concerns: While the current ratio (1.49) is acceptable, the quick ratio (0.94) suggests some short-term liquidity constraints.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper look, review the full fundamental report on AGI.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.