TSX:AGI

Stock Analysis Report

Executive Summary

Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Alamos Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.1%

AGI

3.5%

CA Metals and Mining

-1.5%

CA Market


1 Year Return

42.3%

AGI

6.8%

CA Metals and Mining

2.5%

CA Market

Return vs Industry: AGI exceeded the Canadian Metals and Mining industry which returned 5.4% over the past year.

Return vs Market: AGI exceeded the Canadian Market which returned 4.5% over the past year.


Shareholder returns

AGIIndustryMarket
7 Day9.1%3.5%-1.5%
30 Day10.4%5.0%-0.7%
90 Day26.2%14.3%1.8%
1 Year43.4%42.3%7.5%6.8%5.7%2.5%
3 Year-2.9%-4.2%2.8%1.0%16.8%6.2%
5 Yearn/a29.1%25.4%32.0%12.8%

Price Volatility Vs. Market

How volatile is Alamos Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alamos Gold undervalued compared to its fair value and its price relative to the market?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGI (CA$9.24) is trading below our estimate of fair value (CA$17.55)

Significantly Below Fair Value: AGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AGI is poor value based on its PE Ratio (28.4x) compared to the Metals and Mining industry average (17.4x).

PE vs Market: AGI is poor value based on its PE Ratio (28.4x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: AGI is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: AGI is good value based on its PB Ratio (1x) compared to the CA Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Alamos Gold forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGI's forecast earnings growth (11.4% per year) is above the savings rate (1.4%).

Earnings vs Market: AGI's earnings (11.4% per year) are forecast to grow faster than the Canadian market (10.9% per year).

High Growth Earnings: AGI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGI's revenue (9.4% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: AGI's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGI's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Alamos Gold performed over the past 5 years?

64.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGI has high quality earnings.

Growing Profit Margin: AGI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AGI has become profitable over the past 5 years, growing earnings by 64.1% per year.

Accelerating Growth: AGI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AGI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: AGI's Return on Equity (3.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alamos Gold's financial position?


Financial Position Analysis

Short Term Liabilities: AGI's short term assets ($394.3M) exceed its short term liabilities ($127.3M).

Long Term Liabilities: AGI's short term assets ($394.3M) do not cover its long term liabilities ($573.9M).


Debt to Equity History and Analysis

Debt Level: AGI is debt free.

Reducing Debt: AGI has no debt compared to 5 years ago when its debt to equity ratio was 19.3%.


Balance Sheet

Inventory Level: AGI has a high level of physical assets or inventory.

Debt Coverage by Assets: AGI's debt is not covered by short term assets (assets are -788.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AGI is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AGI is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Alamos Gold's current dividend yield, its reliability and sustainability?

0.58%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%2.0%markettop25%5.6%industryaverage1.2%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: AGI's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: AGI's dividend (0.57%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: AGI is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: AGI is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AGI is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AGI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

John McCluskey (59yo)

4.6yrs

Tenure

US$2,629,072

Compensation

Mr. John A. McCluskey has been the President and Chief Executive Officer of Alamos Gold, Inc., since November 2003 and February 2003 respectively. Mr. McCluskey began his career with Glamis Gold Ltd. in 19 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.63M) is about average for companies of similar size in the Canadian market ($USD2.82M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John McCluskey
President4.6yrsUS$2.63m0.20% $7.3m
James Porter
Chief Financial Officer4.6yrsUS$1.31m0.026% $953.0k
Peter MacPhail
Chief Operating Officer4.6yrsUS$1.33m0.032% $1.1m
Christopher Bostwick
Vice President of Technical Services4.6yrsUS$734.12k0.018% $658.1k
Luis Chavez
Senior Vice President of Mexico4.6yrsUS$753.90k0.023% $827.0k
Scott Parsons
Vice President of Investor Relations4.6yrsno data0.010% $360.2k
Nils Frederik Engelstad
VP & General Counsel4.1yrsno data0.0054% $193.4k
Christine Barwell
Vice President of Human Resources9.8yrsno data0.0080% $287.4k
Luc Guimond
General Manager0yrsno datano data
Rebecca Thompson
Vice President0yrsno datano data

4.6yrs

Average Tenure

59yo

Average Age

Experienced Management: AGI's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John McCluskey
President4.6yrsUS$2.63m0.20% $7.3m
Monique Mercier
Independent Director0.8yrsno data0.0026% $92.2k
J. Robert Prichard
Independent Director0.8yrsno data0.017% $595.0k
Kenneth Stowe
Independent Director4.6yrsUS$160.50k0.00077% $27.7k
Ronald Smith
Independent Director4.6yrsUS$159.73k0.0050% $179.0k
Elaine Ellingham
Independent Director1.8yrsUS$124.25k0.015% $552.5k
David Gower
Independent Director4.6yrsUS$154.33k0.0042% $152.0k
Claire M. Kennedy
Independent Director4.3yrsUS$151.55k0.0013% $46.1k
Paul Murphy
Chairman of the Board6.1yrsUS$270.30k0.0064% $230.2k
David Fleck
Independent Director4.6yrsUS$163.59k0.0051% $184.1k

4.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AGI's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alamos Gold Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alamos Gold Inc.
  • Ticker: AGI
  • Exchange: TSX
  • Founded: 2003
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$3.602b
  • Shares outstanding: 391.08m
  • Website: https://www.alamosgold.com

Number of Employees


Location

  • Alamos Gold Inc.
  • 181 Bay Street
  • Suite 3910
  • Toronto
  • Ontario
  • M5J 2T3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGINYSE (New York Stock Exchange)YesClass A SharesUSUSDJul 2015
AGITSX (The Toronto Stock Exchange)YesClass A SharesCACADJul 2015
1ALDB (Deutsche Boerse AG)YesClass A SharesDEEURJul 2015
0UGSLSE (London Stock Exchange)YesClass A SharesGBCADJul 2015
AGI.WTATSX (The Toronto Stock Exchange)WT EXP 010719CACADJan 2016

Biography

Alamos Gold Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and extraction of gold deposits in North America. It also explores for silver and precious metals. The company’s flagship project is the Young-Davidson mine, which includes contiguous mineral leases and claims totaling 11,000 acres located in Northern Ontario, Canada. It also holds interests in a portfolio of development stage projects in Turkey, Canada, Mexico, and the United States. The company was formerly known as AuRico Gold Inc. and changed its name to Alamos Gold Inc. in July 2015. The company was incorporated in 2003 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 02:07
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.