Anglogold Ashanti PLC (NYSE:AU) Presents a Compelling Case for Value Investors

Anglogold Ashanti PLC (NYSE:AU) has been found by a methodical screening process made to find possible value investments. This method centers on companies showing good basic valuation scores while keeping acceptable ratings in profitability, financial condition, and growth measures. The system fits with main value investing ideas, where investors look for stocks priced lower than their inherent worth while showing operational soundness and financial security.

Fundamental Analysis Summary

Based on ChartMill's detailed fundamental analysis, Anglogold Ashanti receives a total rating of 8 out of 10, placing it well in the metals and mining industry. The company's description shows a worldwide gold mining business with 11 working projects in Africa, the Americas, and Australia. This wide location gives natural protection from local operational challenges while presenting several paths for growth from both current activities and new projects.

Valuation Review

The company's valuation numbers offer a strong argument for value investors looking for assets priced low compared to their basic value. Anglogold shows especially good valuation features when measured against others in the industry:

• Price/Forward Earnings ratio of 13.83 is much lower than both industry (29.24) and S&P 500 (23.15) averages
• Price/Free Cash Flow ratio is lower priced than 85% of industry rivals
• Low PEG ratio implies the present valuation properly accounts for anticipated growth
• Even with a typical P/E ratio of 20.65 seeming high alone, it is still much below the industry average of 35.34

For value investors, these measures point to possible low pricing relative to the wider market and the company's own industry, forming the safety buffer that Benjamin Graham highlighted as key to profitable value investing.

Financial Condition Check

Anglogold's financial steadiness forms a vital base for its value case, with the company getting a score of 8 out of 10 for financial condition:

• Altman-Z score of 5.56 shows very low bankruptcy danger and does better than 65% of industry peers
• Debt-to-FCF ratio of 1.31 indicates the company might pay off all debt in about 16 months
• Current ratio of 2.99 and quick ratio of 2.22 show good short-term cash availability
• Careful debt-to-equity ratio of 0.29 shows sensible capital structure control

This solid financial situation gives the operational freedom needed to handle product price changes while still putting money into growth projects, answering the value investing worry about companies turning into "value traps" from money troubles.

Profitability Measures

The company does very well in profitability with a high rating of 9 out of 10, producing returns that are much better than industry standards:

• Return on Equity of 27.35% is higher than 96% of mining industry rivals
• Return on Invested Capital of 19.74% also does better than 96% of sector peers
• Profit margin of 22.19% is in the top group of the industry
• Operating margin of 35.00% shows good cost management compared to income
• All main margin groups have had steady betterment in recent years

These outstanding profitability measures give assurance that the company has lasting competitive strengths and effective operations, important factors for value investors searching for good businesses at fair prices.

Growth Path

While valuation is still the main point, Anglogold shows acceptable growth features with a rating of 6 out of 10:

• Revenue growth of 26.43% in the last year is much faster than past averages
• Five-year revenue growth average of 10.45% points to continued enlargement
• Expected future revenue growth of 13.47% each year hints at ongoing speed
• Notable EPS growth of 517% in the last year shows operational scale benefits
• The company keeps a steady dividend history for more than ten years

This growth picture, joined with good valuation, makes the chance for price multiple improvement as the market sees the gap between price and basic performance.

Investment Points

The mix of Anglogold's worldwide spread, good financial sheet, outstanding profitability, and fair valuation gives an interesting case for value-focused investors. The company's 2.23% dividend yield, while not high, gives income while investors wait for possible price gains. The mining industry's up-and-down nature calls for watching gold price directions and operational events, but Anglogold's financial soundness places it to handle industry changes successfully.

For investors looking for like chances, more screening outcomes using this value-centered method can be viewed with the Decent Value Stocks screener, which methodically finds companies with good valuation features together with stable basic performance.

Disclaimer: This analysis uses basic data and should not be taken as investment guidance. Investors should do their own investigation and think about their personal money situation before making investment choices. Past results do not ensure future outcomes, and all investments have built-in dangers, including the chance of losing the original investment.