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Toronto Stock Exchange / Materials / Metals & Mining
Technical Analysis
Fundamental Analysis
Analyst Ratings, Profile & Chart
Fundamental Rating
Overall AGI gets a fundamental rating of 7 out of 10. We evaluated AGI against 818 industry peers in the Metals & Mining industry. While AGI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: AGI is growing strongly while it also seems undervalued. With these ratings, AGI could be worth investigating further for value and growth investing!.
1. Profitability
1.1 Basic Checks
AGI had positive earnings in the past year.
AGI had a positive operating cash flow in the past year.
AGI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AGI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.80%, AGI belongs to the best of the industry, outperforming 89.98% of the companies in the same industry.
AGI's Return On Equity of 7.15% is amongst the best of the industry. AGI outperforms 90.71% of its industry peers.
The Return On Invested Capital of AGI (6.70%) is better than 93.15% of its industry peers.
AGI had an Average Return On Invested Capital over the past 3 years of 5.13%. This is significantly below the industry average of 24.74%.
The last Return On Invested Capital (6.70%) for AGI is above the 3 year average (5.13%), which is a sign of increasing profitability.
Industry Rank
Sector Rank
ROA
4.8%
ROE
7.15%
ROIC
6.7%
ROA(3y)3.86%
ROA(5y)2.74%
ROE(3y)5.49%
ROE(5y)3.82%
ROIC(3y)5.13%
ROIC(5y)4.82%
1.3 Margins
AGI's Profit Margin of 18.36% is amongst the best of the industry. AGI outperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of AGI has grown nicely.
Looking at the Operating Margin, with a value of 36.95%, AGI belongs to the top of the industry, outperforming 97.31% of the companies in the same industry.
AGI's Operating Margin has improved in the last couple of years.
The Gross Margin of AGI (44.90%) is better than 94.99% of its industry peers.
In the last couple of years the Gross Margin of AGI has declined.
AGI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AGI has more shares outstanding than it did 1 year ago.
AGI has more shares outstanding than it did 5 years ago.
AGI has a worse debt/assets ratio than last year.
2.2 Solvency
AGI has an Altman-Z score of 3.99. This indicates that AGI is financially healthy and has little risk of bankruptcy at the moment.
AGI has a Altman-Z score of 3.99. This is in the better half of the industry: AGI outperforms 65.65% of its industry peers.
The Debt to FCF ratio of AGI is 1.42, which is an excellent value as it means it would take AGI, only 1.42 years of fcf income to pay off all of its debts.
AGI has a better Debt to FCF ratio (1.42) than 94.38% of its industry peers.
AGI has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
AGI's Debt to Equity ratio of 0.07 is on the low side compared to the rest of the industry. AGI is outperformed by 60.15% of its industry peers.
Even though the debt/equity ratio score it not favorable for AGI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry Rank
Sector Rank
Debt/Equity
0.07
Debt/FCF
1.42
Altman-Z
3.99
ROIC/WACC0.78
WACC8.56%
2.3 Liquidity
AGI has a Current Ratio of 1.49. This is a normal value and indicates that AGI is financially healthy and should not expect problems in meeting its short term obligations.
AGI has a Current ratio (1.49) which is comparable to the rest of the industry.
AGI has a Quick Ratio of 1.49. This is a bad value and indicates that AGI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, AGI perfoms like the industry average, outperforming 44.50% of the companies in the same industry.
The current and quick ratio evaluation for AGI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Based on the Price/Earnings ratio of 28.92, the valuation of AGI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AGI indicates a rather cheap valuation: AGI is cheaper than 88.39% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AGI to the average of the S&P500 Index (24.85), we can say AGI is valued inline with the index average.
With a Price/Forward Earnings ratio of 15.98, AGI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGI indicates a rather cheap valuation: AGI is cheaper than 90.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.89. AGI is valued slightly cheaper when compared to this.
Industry Rank
Sector Rank
PE
28.92
Fwd PE
15.98
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGI is valued cheaper than 90.46% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGI indicates a rather cheap valuation: AGI is cheaper than 91.56% of the companies listed in the same industry.
Industry Rank
Sector Rank
P/FCF
50.22
EV/EBITDA
13.96
4.3 Compensation for Growth
AGI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of AGI may justify a higher PE ratio.
AGI's earnings are expected to grow with 27.61% in the coming years. This may justify a more expensive valuation.
AGI has a yearly dividend return of 0.37%, which is pretty low.
AGI's Dividend Yield is rather good when compared to the industry average which is at 2.84. AGI pays more dividend than 94.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, AGI's dividend is way lower than the S&P500 average.
Industry Rank
Sector Rank
Dividend Yield
0.37%
5.2 History
On average, the dividend of AGI grows each year by 16.57%, which is quite nice.
AGI has been paying a dividend for at least 10 years, so it has a reliable track record.
As AGI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)16.57%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
AGI pays out 14.02% of its income as dividend. This is a sustainable payout ratio.
AGI's earnings are growing more than its dividend. This makes the dividend growth sustainable.