Now trading at a price of $85.68, AngloGold Ashanti has moved -2.6% so far today.
AngloGold Ashanti returned gains of 256.5% last year, with its stock price reaching a high of $89.19 and a low of $22.45. Over the same period, the stock outperformed the S&P 500 index by 243.6%. More recently, the company's 50-day average price was $72.93. AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. Based in Greenwood Village, CO, the Large-Cap Basic Materials company has 12,634 full time employees. AngloGold Ashanti has offered a 2.9% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Revenue (M) | $4,029 | $4,501 | $2,396 | $3,241 |
| Gross Margins | 28% | 25% | 25% | 41% |
| Net Margins | 16% | 6% | -8% | 22% |
| Net Income (M) | $638 | $251 | -$187 | $728 |
| Earnings Per Share | $1.46 | $0.55 | -$0.47 | $1.59 |
| EPS Growth | n/a | -62.33% | -185.45% | 438.3% |
| Free Cash Flow (M) | $240 | $776 | $89 | $696 |
| CAPEX (M) | $1,028 | $1,028 | $589 | $600 |
| Total Debt (M) | $1,858 | $1,965 | $2,032 | $1,901 |
| Current Ratio | 2.59 | 2.43 | 1.8 | 2.18 |
AngloGold Ashanti has generally positive cash flows, an excellent current ratio of 2.18, and positive EPS growth. However, the firm has declining revenues and decreasing reinvestment in the business. Finally, we note that AngloGold Ashanti has similar gross margins to its peers.
a Decline in Expected Earnings Clouds Its Value Outlook but Trading Above Its Fair Price:
AngloGold Ashanti has a trailing twelve month P/E ratio of 16.0, compared to an average of 20.25 for the Basic Materials sector. Based on its EPS guidance of $2.75, the company has a forward P/E ratio of 26.5. The 13.5% compound average growth rate of AngloGold Ashanti's historical and projected earnings per share yields a PEG ratio of 1.18. This implies that the shares are fairly valued. In contrast, AngloGold Ashanti is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.63 is higher than the sector average of 2.31. The company's shares are currently trading 248.4% below their Graham number. Ultimately, AngloGold Ashanti's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
AngloGold Ashanti Has an Average Rating of Buy:
The 7 analysts following AngloGold Ashanti have set target prices ranging from $67.0 to $128.0 per share, for an average of $90.57 with a buy rating. The company is trading -5.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
AngloGold Ashanti has a very low short interest because 1.9% of the company's shares are sold short. Institutions own 76.2% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 6% stake in the company is worth $2,342,413,753.
