ALAMOS GOLD INC-CLASS A (AGI.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AGI - CA0115321089 - Common Stock
60.28 CAD
+1.03 (+1.74%)
AGI gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 820 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making AGI a very profitable company, without any liquidiy or solvency issues. An interesting combination arises when we look at growth and value: AGI is growing strongly while it also seems undervalued. This makes AGI very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year AGI was profitable.
- AGI had a positive operating cash flow in the past year.
- Of the past 5 years AGI 4 years were profitable.
- In the past 5 years AGI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AGI (9.00%) is better than 91.83% of its industry peers.
- AGI has a better Return On Equity (13.33%) than 92.44% of its industry peers.
- The Return On Invested Capital of AGI (8.39%) is better than 93.05% 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 12.04%.
- The last Return On Invested Capital (8.39%) for AGI is above the 3 year average (5.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9% | ||
| ROE | 13.33% | ||
| ROIC | 8.39% |
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
- Looking at the Profit Margin, with a value of 33.46%, AGI belongs to the top of the industry, outperforming 97.07% of the companies in the same industry.
- In the last couple of years the Profit Margin of AGI has grown nicely.
- The Operating Margin of AGI (43.88%) is better than 98.05% of its industry peers.
- AGI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 50.85%, AGI belongs to the top of the industry, outperforming 96.10% of the companies in the same industry.
- AGI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.88% | ||
| PM (TTM) | 33.46% | ||
| GM | 50.85% |
OM growth 3Y8.87%
OM growth 5Y15.23%
PM growth 3YN/A
PM growth 5Y8.45%
GM growth 3Y-7.51%
GM growth 5Y-1.55%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AGI is destroying value.
- Compared to 1 year ago, AGI has more shares outstanding
- AGI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AGI has a worse debt to assets ratio.
2.2 Solvency
- AGI has an Altman-Z score of 6.32. This indicates that AGI is financially healthy and has little risk of bankruptcy at the moment.
- AGI has a Altman-Z score (6.32) which is in line with its industry peers.
- The Debt to FCF ratio of AGI is 1.11, which is an excellent value as it means it would take AGI, only 1.11 years of fcf income to pay off all of its debts.
- AGI has a better Debt to FCF ratio (1.11) than 93.54% 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 61.34% 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 | 1.11 | ||
| Altman-Z | 6.32 |
ROIC/WACC0.86
WACC9.75%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that AGI should not have too much problems paying its short term obligations.
- AGI has a Current ratio (1.72) which is in line with its industry peers.
- A Quick Ratio of 1.33 indicates that AGI should not have too much problems paying its short term obligations.
- AGI has a Quick ratio of 1.33. This is comparable to the rest of the industry: AGI outperforms 47.93% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- AGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.76%, which is quite impressive.
- The Earnings Per Share has been growing by 29.78% on average over the past years. This is a very strong growth
- The Revenue has grown by 31.30% in the past year. This is a very strong growth!
- AGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.54% yearly.
EPS 1Y (TTM)61.76%
EPS 3Y24.47%
EPS 5Y29.78%
EPS Q2Q%94.74%
Revenue 1Y (TTM)31.3%
Revenue growth 3Y17.82%
Revenue growth 5Y14.54%
Sales Q2Q%28.1%
3.2 Future
- The Earnings Per Share is expected to grow by 40.43% on average over the next years. This is a very strong growth
- AGI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.54% yearly.
EPS Next Y80.95%
EPS Next 2Y73.51%
EPS Next 3Y49.88%
EPS Next 5Y40.43%
Revenue Next Year38.66%
Revenue Next 2Y35.93%
Revenue Next 3Y27.55%
Revenue Next 5Y23.54%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 40.19, which means the current valuation is very expensive for AGI.
- Based on the Price/Earnings ratio, AGI is valued cheaply inside the industry as 89.27% of the companies are valued more expensively.
- AGI is valuated rather expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of AGI.
- 91.46% of the companies in the same industry are more expensive than AGI, based on the Price/Forward Earnings ratio.
- AGI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.19 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AGI is valued cheaply inside the industry as 92.20% of the companies are valued more expensively.
- 92.80% of the companies in the same industry are more expensive than AGI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.67 | ||
| EV/EBITDA | 19.49 |
4.3 Compensation for Growth
- The 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 49.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)1.35
EPS Next 2Y73.51%
EPS Next 3Y49.88%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.23%, AGI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, AGI pays a better dividend. On top of this AGI pays more dividend than 94.88% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
- The dividend of AGI is nicely growing with an annual growth rate of 16.57%!
- AGI has paid a dividend for at least 10 years, which is a reliable track record.
- AGI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.57%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
- AGI pays out 7.15% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.15%
EPS Next 2Y73.51%
EPS Next 3Y49.88%
ALAMOS GOLD INC-CLASS A / AGI.CA FAQ
Can you provide the ChartMill fundamental rating for ALAMOS GOLD INC-CLASS A?
ChartMill assigns a fundamental rating of 8 / 10 to AGI.CA.
What is the valuation status of ALAMOS GOLD INC-CLASS A (AGI.CA) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALAMOS GOLD INC-CLASS A (AGI.CA). This can be considered as Undervalued.
Can you provide the profitability details for ALAMOS GOLD INC-CLASS A?
ALAMOS GOLD INC-CLASS A (AGI.CA) has a profitability rating of 8 / 10.
What is the valuation of ALAMOS GOLD INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALAMOS GOLD INC-CLASS A (AGI.CA) is 40.19 and the Price/Book (PB) ratio is 4.59.
Is the dividend of ALAMOS GOLD INC-CLASS A sustainable?
The dividend rating of ALAMOS GOLD INC-CLASS A (AGI.CA) is 6 / 10 and the dividend payout ratio is 7.15%.