ANGLOGOLD ASHANTI PLC (AU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AU - GB00BRXH2664 - Common Stock
105.114 USD
+2.06 (+2%)
We assign a fundamental rating of 8 out of 10 to AU. AU was compared to 156 industry peers in the Metals & Mining industry. AU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AU has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes AU very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year AU was profitable.
- In the past year AU had a positive cash flow from operations.
- Of the past 5 years AU 4 years were profitable.
- Each year in the past 5 years AU had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 16.68%, AU belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
- AU has a better Return On Equity (32.17%) than 96.79% of its industry peers.
- AU has a Return On Invested Capital of 23.07%. This is amongst the best in the industry. AU outperforms 97.44% of its industry peers.
- AU had an Average Return On Invested Capital over the past 3 years of 9.08%. This is in line with the industry average of 10.34%.
- The 3 year average ROIC (9.08%) for AU is below the current ROIC(23.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 32.17% | ||
| ROIC | 23.07% |
ROA(3y)2.55%
ROA(5y)5.64%
ROE(3y)4.86%
ROE(5y)11.27%
ROIC(3y)9.08%
ROIC(5y)10.81%
1.3 Margins
- Looking at the Profit Margin, with a value of 24.58%, AU belongs to the top of the industry, outperforming 89.10% of the companies in the same industry.
- AU's Profit Margin has improved in the last couple of years.
- AU has a Operating Margin of 37.97%. This is amongst the best in the industry. AU outperforms 89.10% of its industry peers.
- In the last couple of years the Operating Margin of AU has grown nicely.
- AU has a Gross Margin of 45.19%. This is in the better half of the industry: AU outperforms 78.85% of its industry peers.
- AU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.97% | ||
| PM (TTM) | 24.58% | ||
| GM | 45.19% |
OM growth 3Y10.64%
OM growth 5Y9.21%
PM growth 3Y4.38%
PM growth 5YN/A
GM growth 3Y7.1%
GM growth 5Y6.76%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AU is creating value.
- Compared to 1 year ago, AU has more shares outstanding
- The number of shares outstanding for AU has been increased compared to 5 years ago.
- AU has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.79 indicates that AU is not in any danger for bankruptcy at the moment.
- The Altman-Z score of AU (6.79) is better than 68.59% of its industry peers.
- The Debt to FCF ratio of AU is 0.92, which is an excellent value as it means it would take AU, only 0.92 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AU (0.92) is better than 87.18% of its industry peers.
- A Debt/Equity ratio of 0.28 indicates that AU is not too dependend on debt financing.
- AU's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. AU outperforms 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 6.79 |
ROIC/WACC2.22
WACC10.39%
2.3 Liquidity
- AU has a Current Ratio of 2.58. This indicates that AU is financially healthy and has no problem in meeting its short term obligations.
- AU has a Current ratio of 2.58. This is comparable to the rest of the industry: AU outperforms 55.13% of its industry peers.
- A Quick Ratio of 1.98 indicates that AU should not have too much problems paying its short term obligations.
- The Quick ratio of AU (1.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
- AU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 517.47%, which is quite impressive.
- The Earnings Per Share has been growing by 16.81% on average over the past years. This is quite good.
- The Revenue has grown by 26.43% in the past year. This is a very strong growth!
- The Revenue has been growing by 10.45% on average over the past years. This is quite good.
EPS 1Y (TTM)517.47%
EPS 3Y16.81%
EPS 5YN/A
EPS Q2Q%163.4%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y12.87%
Revenue growth 5Y10.45%
Sales Q2Q%62.11%
3.2 Future
- AU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.97% yearly.
- AU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.47% yearly.
EPS Next Y120.72%
EPS Next 2Y78.7%
EPS Next 3Y45.37%
EPS Next 5Y14.97%
Revenue Next Year65.57%
Revenue Next 2Y37.62%
Revenue Next 3Y24.45%
Revenue Next 5Y13.47%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 24.05 indicates a rather expensive valuation of AU.
- Based on the Price/Earnings ratio, AU is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- AU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 12.69, AU is valued correctly.
- 82.05% of the companies in the same industry are more expensive than AU, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. AU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 12.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AU indicates a rather cheap valuation: AU is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- AU'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 AU may justify a higher PE ratio.
- AU's earnings are expected to grow with 45.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y78.7%
EPS Next 3Y45.37%
5. Dividend
5.1 Amount
- AU has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.96, AU pays a better dividend. On top of this AU pays more dividend than 90.38% of the companies listed in the same industry.
- AU's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
- On average, the dividend of AU grows each year by 59.59%, which is quite nice.
- AU has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of AU decreased recently.
Dividend Growth(5Y)59.59%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- AU pays out 51.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP51.17%
EPS Next 2Y78.7%
EPS Next 3Y45.37%
ANGLOGOLD ASHANTI PLC / AU FAQ
What is the fundamental rating for AU stock?
ChartMill assigns a fundamental rating of 8 / 10 to AU.
What is the valuation status of ANGLOGOLD ASHANTI PLC (AU) stock?
ChartMill assigns a valuation rating of 7 / 10 to ANGLOGOLD ASHANTI PLC (AU). This can be considered as Undervalued.
How profitable is ANGLOGOLD ASHANTI PLC (AU) stock?
ANGLOGOLD ASHANTI PLC (AU) has a profitability rating of 9 / 10.
What are the PE and PB ratios of ANGLOGOLD ASHANTI PLC (AU) stock?
The Price/Earnings (PE) ratio for ANGLOGOLD ASHANTI PLC (AU) is 24.05 and the Price/Book (PB) ratio is 6.9.
How sustainable is the dividend of ANGLOGOLD ASHANTI PLC (AU) stock?
The dividend rating of ANGLOGOLD ASHANTI PLC (AU) is 5 / 10 and the dividend payout ratio is 51.17%.