Reasons Why I Like Anglo African Oil & Gas plc (LON:AAOG)

Anglo African Oil & Gas plc (LON:AAOG) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of AAOG, it is a company with robust financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Anglo African Oil & Gas here.

Exceptional growth potential with adequate balance sheet

Investors in search of impressive top-line expansion should look no further than AAOG, with its expected revenue growth to more than double in the upcoming year. This is expected to flow down into an impressive return on equity of 34.30% over the next couple of years. AAOG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that AAOG has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. Investors should not worry about AAOG’s debt levels because the company has a very miniscule amount on its books. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

AIM:AAOG Future Profit August 9th 18
AIM:AAOG Future Profit August 9th 18

Next Steps:

For Anglo African Oil & Gas, there are three relevant aspects you should further examine:

  1. Historical Performance: What has AAOG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is AAOG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AAOG is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AAOG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.