Anglo American
Market Cap
UK£21.0b
Last Updated
2020/05/31 21:58 UTC
Data Sources
Company Financials +
Executive Summary
Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2.9% per year for the next 3 years
Snowflake Analysis
Undervalued with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Anglo American's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AAL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
8.3%
AAL
2.9%
GB Metals and Mining
2.0%
GB Market
1 Year Return
-10.3%
AAL
-5.2%
GB Metals and Mining
-12.8%
GB Market
Return vs Industry: AAL underperformed the UK Metals and Mining industry which returned -5.2% over the past year.
Return vs Market: AAL exceeded the UK Market which returned -12.8% over the past year.
Shareholder returns
| AAL | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.3% | 2.9% | 2.0% |
| 30 Day | 24.9% | 13.3% | 5.7% |
| 90 Day | -7.8% | 5.4% | -8.2% |
| 1 Year | -5.3%-10.3% | 2.1%-5.2% | -8.6%-12.8% |
| 3 Year | 91.8%65.2% | 40.3%16.7% | -6.2%-17.6% |
| 5 Year | 99.6%67.5% | 70.9%31.4% | 12.7%-12.5% |
Price Volatility Vs. Market
How volatile is Anglo American's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is It Worth Buying Anglo American plc (LON:AAL) For Its 6.0% Dividend Yield?2 months ago | Simply Wall St
A Sliding Share Price Has Us Looking At Anglo American plc's (LON:AAL) P/E Ratio2 months ago | Simply Wall St
The CEO & Director of Anglo American plc (LON:AAL), Mark Cutifani, Just Bought 11% More SharesValuation
Is Anglo American undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAL (£17.01) is trading below our estimate of fair value (£36.28)
Significantly Below Fair Value: AAL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AAL is good value based on its PE Ratio (7.5x) compared to the Metals and Mining industry average (7.7x).
PE vs Market: AAL is good value based on its PE Ratio (7.5x) compared to the UK market (14.6x).
Price to Earnings Growth Ratio
PEG Ratio: AAL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AAL is good value based on its PB Ratio (1.1x) compared to the GB Metals and Mining industry average (1.1x).
Next Steps
Future Growth
How is Anglo American forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-2.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAL's earnings are forecast to decline over the next 3 years (-2.9% per year).
Earnings vs Market: AAL's earnings are forecast to decline over the next 3 years (-2.9% per year).
High Growth Earnings: AAL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AAL's revenue (2.4% per year) is forecast to grow slower than the UK market (3.6% per year).
High Growth Revenue: AAL's revenue (2.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AAL's Return on Equity is forecast to be low in 3 years time (9.2%).
Next Steps
Past Performance
How has Anglo American performed over the past 5 years?
60.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAL has high quality earnings.
Growing Profit Margin: AAL's current net profit margins (11.9%) are lower than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: AAL has become profitable over the past 5 years, growing earnings by 60.6% per year.
Accelerating Growth: AAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AAL had negative earnings growth (-0.06%) over the past year, making it difficult to compare to the Metals and Mining industry average (9.8%).
Return on Equity
High ROE: AAL's Return on Equity (14.6%) is considered low.
Next Steps
Financial Health
How is Anglo American's financial position?
Financial Position Analysis
Short Term Liabilities: AAL's short term assets ($14.1B) exceed its short term liabilities ($7.2B).
Long Term Liabilities: AAL's short term assets ($14.1B) do not cover its long term liabilities ($17.5B).
Debt to Equity History and Analysis
Debt Level: AAL's debt to equity ratio (32.4%) is considered satisfactory.
Reducing Debt: AAL's debt to equity ratio has reduced from 57.6% to 32.4% over the past 5 years.
Debt Coverage: AAL's debt is well covered by operating cash flow (75.3%).
Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (17.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Anglo American's current dividend yield, its reliability and sustainability?
5.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AAL's dividend (5.19%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).
High Dividend: AAL's dividend (5.19%) is low compared to the top 25% of dividend payers in the UK market (5.69%).
Stability and Growth of Payments
Stable Dividend: AAL's dividend payments have been volatile in the past 10 years.
Growing Dividend: AAL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38.8%), AAL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AAL's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Mark Cutifani (61yo)
7yrs
Tenure
US$11,255,000
Compensation
Mr. Mark Cutifani, BE (Mining), Fellow AusIMM, CEngFIMMM, DBA (Hon), DoL (Hon), has been the Chief Executive of Anglo American Plc since April 03, 2013 and Anglo American Australia Limited since April 2013 ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD13.89M) is above average for companies of similar size in the UK market ($USD4.73M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7yrs | US$11.26m | 0.081% $17.0m | |
| Finance Director & Executive Director | 3yrs | US$6.72m | 0.022% $4.6m | |
| Technical Director & Director | 4.83yrs | US$7.07m | 0.039% $8.2m | |
| COO & Executive Director of Anglo American Platinum Corporation Limited | 24.33yrs | no data | no data | |
| Group Head of Investor Relations | no data | no data | no data | |
| Group General Counsel & Company Secretary | 3yrs | no data | no data | |
| Chief Executive Officer of Marketing | 4.33yrs | no data | 0.022% $4.7m | |
| Group Director of People & Organisation | 4.42yrs | no data | no data | |
| Chief Executive Officer of Bulk Commodities & Other Minerals | 3.58yrs | no data | 0.031% $6.6m | |
| Chief Executive Officer of Base Metals | 1.17yrs | no data | no data |
4.3yrs
Average Tenure
56yo
Average Age
Experienced Management: AAL's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 7yrs | US$11.26m | 0.081% $17.0m | |
| Finance Director & Executive Director | 3yrs | US$6.72m | 0.022% $4.6m | |
| Technical Director & Director | 4.83yrs | US$7.07m | 0.039% $8.2m | |
| COO & Executive Director of Anglo American Platinum Corporation Limited | 24.33yrs | no data | no data | |
| Independent Non-Executive Director | 8yrs | US$139.00k | 0.00017% $35.7k | |
| Senior Independent Director | 1.33yrs | US$169.00k | 0.0031% $644.3k | |
| Chairman of the Board | 2.42yrs | US$705.00k | 0.00086% $180.5k | |
| Independent Non-Executive Director | 2.83yrs | US$132.00k | no data | |
| Non-Executive Director | 6.42yrs | US$126.00k | 0.0029% $610.7k | |
| Independent Non-Executive Director | 1yr | US$77.00k | 0.000080% $16.8k |
3.9yrs
Average Tenure
62yo
Average Age
Experienced Board: AAL's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AAL 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
Anglo American plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Anglo American plc
- Ticker: AAL
- Exchange: LSE
- Founded: 1917
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: UK£20.987b
- Shares outstanding: 1.23b
- Website: https://www.angloamerican.com
Number of Employees
Location
- Anglo American plc
- 20 Carlton House Terrace
- London
- Greater London
- SW1Y 5AN
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NGLD | DB (Deutsche Boerse AG) | SPON ADR EACH REP 0.5 ORD | DE | EUR | Dec 1972 | |
| NGLO.Y | OTCPK (Pink Sheets LLC) | SPON ADR EACH REP 0.5 ORD | US | USD | Dec 1972 | |
| NGLC | XTRA (XETRA Trading Platform) | SPON ADR EACH REP 0.5 ORD | DE | EUR | Dec 1972 | |
| AAUK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1975 |
| AAL | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1975 |
| NGLB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1975 |
| AGL | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Jan 1975 |
| ANM | NMSE (Namibian Stock Exchange) | Yes | Ordinary Shares | NA | ZAR | Jan 1975 |
| AAM | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1975 |
| ANGLO | BSM (Botswana Share Market) | Yes | Ordinary Shares | BW | BWP | Jan 1975 |
| NGLB | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Jan 1975 |
| AALL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1975 |
| AGL N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jan 1975 |
| AAMZ | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | CHF | Jan 1975 |
Biography
Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron; and nickel and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/31 21:58 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.