Anglogold Ashanti PLC (AU, Financial), a prominent player in the Metals & Mining industry, has experienced a notable fluctuation in its stock performance recently. Over the past week, the company's stock price has decreased by 3.06%, yet it has surged by an impressive 29.16% over the last three months. Currently, the company boasts a market capitalization of $10.07 billion. According to GuruFocus's valuation metrics, Anglogold Ashanti is fairly valued at a price of $24, with a GF Value of $22.48. This valuation marks a shift from three months ago when the stock was considered modestly undervalued.
Overview of Anglogold Ashanti PLC
Anglogold Ashanti PLC is a major gold mining company with additional production of silver and sulphuric acid. The company operates primarily in Africa, Australia, and the Americas, with a significant revenue generation from its African operations, including the Kibali, Iduapriem, Obuasi, Siguiri, and Geita mines. This geographical diversity supports its robust business model, allowing it to leverage resources across different regions effectively.
Assessing Profitability
Anglogold Ashanti's financial health is reflected in its moderate Profitability Rank of 6/10. The company's Operating Margin stands at 13.68%, which is higher than 77.56% of its peers in the sector. Additionally, key financial ratios such as ROE at 0.94%, ROA at 0.48%, and ROIC at 2.94% demonstrate competitive performance within the industry. The company has been profitable in 5 out of the last 10 years, showcasing its ability to maintain financial stability amidst market fluctuations.
Growth Trajectory
Anglogold Ashanti is recognized for its strong growth metrics, with a Growth Rank of 7/10. The company has achieved a 3-Year Revenue Growth Rate per Share of 8.50% and a 5-Year EPS without NRI Growth Rate of 74.00%, indicating substantial long-term growth. Future revenue estimates suggest a Total Revenue Growth Rate of 4.42% over the next 3 to 5 years, further affirming the company's growth potential.
Influential Shareholders
Anglogold Ashanti's shareholder base includes notable investment figures and firms. First Eagle Investment (Trades, Portfolio) holds 1.43% of the company's shares, followed closely by Howard Marks (Trades, Portfolio) with 1.4%, and John Paulson (Trades, Portfolio) holding 0.91%. These significant stakes by renowned investors underscore confidence in the company's future prospects and strategic direction.
Competitive Landscape
When compared to its primary competitors, Anglogold Ashanti holds a strong market position. Royal Gold Inc (RGLD, Financial) has a market cap of $8.19 billion, Coeur Mining Inc (CDE, Financial) is valued at $2.06 billion, and Seabridge Gold Inc (SA, Financial) stands at $1.32 billion. This comparison highlights Anglogold Ashanti's superior market capitalization and its prominence within the Metals & Mining industry.
Conclusion: A Robust Market Contender
Anglogold Ashanti PLC demonstrates a solid combination of robust growth and reasonable profitability, supported by a stable market position and the backing of influential shareholders. Positioned well within the competitive landscape of the Metals & Mining industry, the company is poised for sustained growth and profitability, reflecting its strong business fundamentals and strategic market maneuvers.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
