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Anglo American

LSE:AAL
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AAL
LSE
£25B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. The last earnings update was 81 days ago. More info.


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AAL Share Price and Events
7 Day Returns
-1%
LSE:AAL
-2.1%
GB Metals and Mining
-1.3%
GB Market
1 Year Returns
9.3%
LSE:AAL
-6.1%
GB Metals and Mining
-5.9%
GB Market
AAL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Anglo American (AAL) -1% -6.6% -5.5% 9.3% 217.6% 33.4%
GB Metals and Mining -2.1% -9% -5.2% -6.1% 86.5% 19.3%
GB Market -1.3% -3.3% 0.8% -5.9% 12.6% 0.4%
1 Year Return vs Industry and Market
  • AAL outperformed the Metals and Mining industry which returned -6.1% over the past year.
  • AAL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.9% over the past year.
Price Volatility
AAL
Industry
5yr Volatility vs Market

Value

 Is Anglo American undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Anglo American to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Anglo American.

LSE:AAL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:AAL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.019 (1 + (1- 19%) (29.09%))
1.173
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.173 * 6.65%)
9.03%

Discounted Cash Flow Calculation for LSE:AAL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Anglo American is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:AAL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.03%)
2019 3,735.22 Analyst x16 3,425.87
2020 3,299.73 Analyst x13 2,775.79
2021 2,836.48 Analyst x12 2,188.48
2022 3,637.25 Analyst x4 2,573.90
2023 4,964.50 Analyst x2 3,222.17
2024 5,529.72 Est @ 11.39% 3,291.77
2025 5,990.78 Est @ 8.34% 3,270.88
2026 6,362.48 Est @ 6.2% 3,186.12
2027 6,662.23 Est @ 4.71% 3,059.92
2028 6,906.47 Est @ 3.67% 2,909.38
Present value of next 10 years cash flows $29,904.28
LSE:AAL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $6,906.47 × (1 + 1.23%) ÷ (9.03% – 1.23%)
$89,597.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $89,597.86 ÷ (1 + 9.03%)10
$37,743.53
LSE:AAL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $29,904.28 + $37,743.53
$67,647.81
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $67,647.81 / 1,265.82
$53.44
LSE:AAL Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:AAL)
0.788
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $53.44 x 0.788
£42.13
Value per share (GBP) From above. £42.13
Current discount Discount to share price of £19.44
= -1 x (£19.44 - £42.13) / £42.13
53.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Anglo American is available for.
Intrinsic value
>50%
Share price is £19.44 vs Future cash flow value of £42.13
Current Discount Checks
For Anglo American to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Anglo American's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Anglo American's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Anglo American's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Anglo American's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AAL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.80
LSE:AAL Share Price ** LSE (2019-05-24) in GBP £19.44
LSE:AAL Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.269 $24.66
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PE Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 9.86x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Anglo American.

LSE:AAL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AAL Share Price ÷ EPS (both in USD)

= 24.66 ÷ 2.80

8.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Anglo American is good value based on earnings compared to the GB Metals and Mining industry average.
  • Anglo American is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Anglo American's expected growth come at a high price?
Raw Data
LSE:AAL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
-0.5%per year
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PEG Ratio Median Figure of 30 Publicly-Listed Metals and Mining Companies 0.64x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:AAL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.82x ÷ -0.5%

-18.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Anglo American earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Anglo American's assets?
Raw Data
LSE:AAL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $18.63
LSE:AAL Share Price * LSE (2019-05-24) in GBP £19.44
LSE:AAL Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.269 $24.66
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PB Ratio Median Figure of 118 Publicly-Listed Metals and Mining Companies 0.94x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.48x
LSE:AAL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AAL Share Price ÷ Book Value per Share (both in USD)

= 24.66 ÷ 18.63

1.32x

* Primary Listing of Anglo American.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Anglo American is overvalued based on assets compared to the GB Metals and Mining industry average.
X
Value checks
We assess Anglo American's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Anglo American has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Anglo American expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Anglo American expected to grow at an attractive rate?
  • Anglo American's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Anglo American's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Anglo American's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AAL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AAL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts -0.5%
LSE:AAL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.2%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 0.7%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:AAL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AAL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 34,190 8,928 4,236 1
2022-12-31 30,081 7,412 3,645 3
2021-12-31 28,994 7,314 3,303 9
2020-12-31 28,257 7,334 3,528 15
2019-12-31 28,229 7,782 3,933 12
LSE:AAL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 27,610 7,127 3,549
2018-09-30 27,715 7,418 3,295
2018-06-30 27,819 7,708 3,041
2018-03-31 27,031 7,879 3,104
2017-12-31 26,243 8,049 3,166
2017-09-30 24,904 7,304 3,494
2017-06-30 23,564 6,559 3,822
2017-03-31 22,471 5,979 2,708
2016-12-31 21,378 5,399 1,594
2016-09-30 20,106 4,611 -914
2016-06-30 18,833 3,823 -3,422
2016-03-31 19,644 3,900 -4,523

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Anglo American's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Anglo American's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:AAL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Anglo American Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AAL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 2.59 2.59 2.59 1.00
2021-12-31 2.43 2.73 1.85 6.00
2020-12-31 2.76 3.25 2.27 9.00
2019-12-31 3.16 3.81 2.66 8.00
LSE:AAL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.80
2018-09-30 2.60
2018-06-30 2.41
2018-03-31 2.45
2017-12-31 2.48
2017-09-30 2.72
2017-06-30 2.96
2017-03-31 2.10
2016-12-31 1.24
2016-09-30 -0.71
2016-06-30 -2.65
2016-03-31 -3.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Anglo American is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Anglo American's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Anglo American has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Anglo American performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Anglo American's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Anglo American has delivered over 20% year on year earnings growth in the past 5 years.
  • Anglo American's 1-year earnings growth is less than its 5-year average (12.1% vs 49.3%)
  • Anglo American's earnings growth has not exceeded the GB Metals and Mining industry average in the past year (12.1% vs 13.1%).
Earnings and Revenue History
Anglo American's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Anglo American Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AAL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 27,610.00 3,549.00 5,539.00
2018-09-30 27,714.50 3,295.00 5,633.00
2018-06-30 27,819.00 3,041.00 5,864.00
2018-03-31 27,031.00 3,103.50 5,863.50
2017-12-31 26,243.00 3,166.00 5,726.00
2017-09-30 24,903.50 3,494.00 5,363.50
2017-06-30 23,564.00 3,822.00 5,001.00
2017-03-31 22,471.00 2,708.00 5,003.50
2016-12-31 21,378.00 1,594.00 5,006.00
2016-09-30 20,105.50 -914.00 4,530.00
2016-06-30 18,833.00 -3,422.00 4,054.00
2016-03-31 19,644.00 -4,523.00 4,065.50
2015-12-31 20,455.00 -5,624.00 4,077.00
2015-09-30 22,432.50 -6,308.00 4,397.50
2015-06-30 24,410.00 -6,992.00 4,718.00
2015-03-31 25,741.50 -4,752.50 4,723.00
2014-12-31 27,073.00 -2,513.00 4,728.00
2014-09-30 28,115.50 -1,206.50 4,488.50
2014-06-30 29,158.00 100.00 4,249.00
2014-03-31 29,250.00 -430.50 4,262.00
2013-12-31 29,342.00 -961.00 4,275.00
2013-09-30 29,395.50 -1,641.00 4,365.00
2013-06-30 29,449.00 -2,321.00 4,455.00
2013-03-31 29,064.50 -1,895.50 4,435.50
2012-12-31 28,680.00 -1,470.00 4,416.00
2012-09-30 28,849.00 994.50 4,202.00
2012-06-30 28,979.00 3,435.00 3,996.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Anglo American has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Anglo American used its assets more efficiently than the GB Metals and Mining industry average last year based on Return on Assets.
  • Anglo American has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Anglo American's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Anglo American has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Anglo American's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Anglo American's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Anglo American is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Anglo American's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Anglo American's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Anglo American Company Filings, last reported 4 months ago.

LSE:AAL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 29,832.00 9,080.00 6,577.00
2018-09-30 29,832.00 9,080.00 6,577.00
2018-06-30 27,978.00 9,694.00 6,277.00
2018-03-31 27,978.00 9,694.00 6,277.00
2017-12-31 28,882.00 12,029.00 7,828.00
2017-09-30 28,882.00 12,029.00 7,828.00
2017-06-30 26,477.00 12,935.00 7,408.00
2017-03-31 26,477.00 12,935.00 7,408.00
2016-12-31 24,325.00 13,179.00 6,070.00
2016-09-30 24,325.00 13,179.00 6,070.00
2016-06-30 21,428.00 15,941.00 5,761.00
2016-03-31 21,428.00 15,941.00 5,761.00
2015-12-31 21,342.00 17,985.00 7,560.00
2015-09-30 21,342.00 17,985.00 7,560.00
2015-06-30 27,664.00 18,941.00 7,033.00
2015-03-31 27,664.00 18,941.00 7,033.00
2014-12-31 32,177.00 18,562.00 6,852.00
2014-09-30 32,177.00 18,562.00 6,852.00
2014-06-30 38,430.00 19,882.00 8,452.00
2014-03-31 38,430.00 19,882.00 8,452.00
2013-12-31 37,364.00 17,988.00 7,773.00
2013-09-30 37,364.00 17,988.00 7,773.00
2013-06-30 39,987.00 17,077.00 8,527.00
2013-03-31 39,987.00 17,077.00 8,527.00
2012-12-31 43,738.00 17,654.00 9,279.00
2012-09-30 43,787.00 17,760.00 9,293.00
2012-06-30 44,699.00 13,745.00 11,249.00
  • Anglo American's level of debt (30.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (48.2% vs 30.4% today).
  • Debt is well covered by operating cash flow (78.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.5x coverage).
X
Financial health checks
We assess Anglo American's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Anglo American has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Anglo American's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.05%
Current annual income from Anglo American dividends. Estimated to be 4.64% next year.
If you bought £2,000 of Anglo American shares you are expected to receive £81 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Anglo American's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.03%).
  • Anglo American's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.33%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:AAL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:AAL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.27 3.00
2022-12-31 1.06 5.00
2021-12-31 1.03 17.00
2020-12-31 1.11 23.00
2019-12-31 1.28 22.00
LSE:AAL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-16 1.000 3.908
2018-04-26 1.080 4.721
2017-07-27 0.960 4.735
2017-03-13 0.000 0.000
2017-02-21 0.000 0.000
2016-07-28 0.000 0.000
2016-03-14 0.000 0.000
2016-02-16 0.000 0.000
2015-09-04 0.850 14.649
2015-04-15 0.850 6.070
2014-07-25 0.743 4.095
2014-04-14 0.850 3.312
2013-07-26 0.850 3.618
2013-02-15 0.850 3.577
2013-02-14 0.850 2.704
2012-12-20 0.808 2.723
2012-07-31 0.599 2.123
2012-02-17 0.740 2.107
2012-02-16 1.480 3.527
2011-07-29 0.680 1.768
2011-02-18 0.650 1.310
2010-07-30 0.500 1.115
2010-03-01 0.000 0.000
2010-02-19 0.000 0.000
2009-07-31 0.000 0.000
2009-07-15 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Anglo American has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Anglo American only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Anglo American's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Anglo American's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Anglo American afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Anglo American has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Anglo American's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Cutifani
COMPENSATION $14,669,000
AGE 60
TENURE AS CEO 6.1 years
CEO Bio

Mr. Mark Cutifani, BEng (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. Mr. Cutifani has been involved in the mining industry since 1976 and has considerable experience in gold mining. He served as the Chief Executive Officer of AngloGold Ashanti Ltd. from October 01, 2007 to March 31, 2013. He served as the Chief Operating Officer of Vale Canada Limited (formerly Vale Inco Limited) from January 30, 2007 to September 2007 and also served as its Executive Vice President. He was responsible for Vale’s global nickel business. He held senior executive positions with the Normandy Group and Western Mining Corporation. Mr. Cutifani served as the Managing Director of Sons of Gwalia Ltd. since 2000. He began his career in 1976, working with CRA (Rio Tinto) in underground coal operations reaching the position of Manager, responsible for production, processing and finished product delivery. In 1988, he joined Kalgoorlie Consolidated Gold Mines and as its General Manager, he was responsible for one of the largest multi-mine source gold operations in the world. In 1994, he was recruited to manage WMC's nickel operations, where he led its revitalization strategy and $1B expansion program. He was then assigned to manage WMC's $1.5B copper business expansion after it had experienced difficulties in the pre-construction phase. He continued gaining extensive operating and corporate experience being appointed Group Executive in Charge of operations for Australia's largest gold company, Normandy Mining. He joined Vale Canada Limited as Vice President of Canadian and UK Operations in March 2003 and served as its President of Ontario Operations since April 2004. Mr. Cutifani served as the President of North America and Europe Operations for Vale Canada since September 2005 and served as a General Manager of Australia's largest gold operations. He has been the Chairman of Anglo American South Africa Limited since June 1, 2015. He serves as Chairman of De Beers UK Limited. He has been the Chairman of De Beers Société Anonyme since July 2013. He has been an Independent Director at TOTAL S.A. since May 26, 2017. He has been a Non-Executive Director of Anglo American Platinum Limited since April 26, 2013. He has been an Executive Director at Anglo American Plc since April 3, 2013. Mr. Cutifani served as an Executive Director of AngloGold Ashanti Ltd. from September 17, 2007 to March 31, 2013. He served as a Director of Sons of Gwalia Ltd. until February 14, 2003. He served as a Commissioner of PT Vale Indonesia Tbk since March 2007. He served as a Member of Executive Advisory Board for minerals sector research at CSIRO. He is a member of the following institutions: Kellogg Innovation Network (US) – International Advisory Committee, President of SA Chamber of Mines, Executive Committee Member and Treasurer of International Council on Mining and Metals (ICMM), and Member of Mining & Metals Steering Board and Governor, Mining and Metals Industry Programme at World Economic Forum. He is a Member of the West Australia Chamber of Mines and Australian Gold Council, the Ontario Mining Association and the Minerals Association of Canada. He was a Councilor at the Australian Institute of Mining and Metallurgy. He is a Fellow of the Australian Institute of Mining and Metallurgy. Mr. Cutifani graduated from Wollongong University, New South Wales, with a BEng in Mining Engineering and in 2013, was awarded an honorary doctorate. In 2016, Mark was awarded an honorary doctorate by the Laurentian University in Canada.

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mark's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Anglo American management team in years:

3.4
Average Tenure
55
Average Age
  • The tenure for the Anglo American management team is about average.
Management Team

Mark Cutifani

TITLE
CEO & Director
COMPENSATION
$15M
AGE
60
TENURE
6.1 yrs

Stephen Pearce

TITLE
Finance Director & Executive Director
COMPENSATION
$7M
AGE
54
TENURE
2.1 yrs

Tony O'Neill

TITLE
Technical Director & Director
COMPENSATION
$8M
AGE
61
TENURE
3.8 yrs

Dorian Emmett

TITLE
COO & Executive Director of Anglo American Platinum Corporation Limited
AGE
66
TENURE
14.7 yrs

Richard J. Price

TITLE
Group General Counsel & Company Secretary
AGE
54
TENURE
2 yrs

Peter Whitcutt

TITLE
Chief Executive Officer of Marketing
AGE
52
TENURE
3.3 yrs

Didier Charreton

TITLE
Group Director of People & Organisation
AGE
55
TENURE
3.4 yrs

Seamus French

TITLE
Chief Executive Officer of Bulk Commodities & Other Minerals
AGE
56
TENURE
2.7 yrs

Ruben Fernandes

TITLE
Chief Executive Officer of Base Metals
AGE
53
TENURE
0.2 yrs

Alexander Schmitt

TITLE
Head of Marketing & Sales - Base and Specialty Metals
TENURE
8.7 yrs
Board of Directors Tenure

Average tenure and age of the Anglo American board of directors in years:

4.7
Average Tenure
61.5
Average Age
  • The tenure for the Anglo American board of directors is about average.
Board of Directors

Stuart Chambers

TITLE
Chairman of the Board
COMPENSATION
$707K
AGE
62
TENURE
1.5 yrs

Mark Cutifani

TITLE
CEO & Director
COMPENSATION
$15M
AGE
60
TENURE
6.1 yrs

Stephen Pearce

TITLE
Finance Director & Executive Director
COMPENSATION
$7M
AGE
54
TENURE
2.1 yrs

Tony O'Neill

TITLE
Technical Director & Director
COMPENSATION
$8M
AGE
61
TENURE
3.8 yrs

Dorian Emmett

TITLE
COO & Executive Director of Anglo American Platinum Corporation Limited
AGE
66
TENURE
23.3 yrs

Norman Mbazima

TITLE
Deputy Chairman of Anglo American South Africa Limited
AGE
60
TENURE
3.9 yrs

Anne Stevens

TITLE
Independent Non-Executive Director
COMPENSATION
$106K
AGE
70
TENURE
7 yrs

Byron Grote

TITLE
Senior Independent Director
COMPENSATION
$126K
AGE
70
TENURE
0.3 yrs

Mphu Ramatlapeng

TITLE
Independent Non-Executive Director
COMPENSATION
$91K
AGE
65
TENURE
5.8 yrs

Jim Rutherford

TITLE
Independent Non-Executive Director
COMPENSATION
$111K
AGE
59
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • Anglo American insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
29. Mar 19 Buy James Rutherford Individual 28. Mar 19 28. Mar 19 953 £20.02 £19,074
29. Mar 19 Sell Anik Michaud Individual 28. Mar 19 28. Mar 19 -17,794 £20.04 £-356,645
29. Mar 19 Buy Stuart Chambers Individual 28. Mar 19 28. Mar 19 473 £20.02 £9,467
20. Dec 18 Buy James Rutherford Individual 19. Dec 18 19. Dec 18 1,102 £17.31 £19,080
20. Dec 18 Buy Mphu Ramatlapeng Individual 19. Dec 18 19. Dec 18 192 £17.31 £3,324
20. Dec 18 Buy Stuart Chambers Individual 19. Dec 18 19. Dec 18 547 £17.31 £9,471
20. Dec 18 Buy Philip Hampton Individual 19. Dec 18 19. Dec 18 617 £17.31 £10,683
30. Oct 18 Sell Duncan Wanblad Individual 29. Oct 18 29. Oct 18 -41,857 £16.25 £-680,134
17. Sep 18 Buy Nolitha Fakude Individual 13. Sep 18 13. Sep 18 1,000 £15.06 £15,063
X
Management checks
We assess Anglo American's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Anglo American has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Many Anglo American plc (LON:AAL) Shares Do Institutions Own?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Insider Ownership Of Anglo American The definition of company insiders can be subjective, and does vary between jurisdictions. … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Simply Wall St -

How Does Anglo American plc (LON:AAL) Fare As A Dividend Stock?

Could Anglo American plc (LON:AAL) be an attractive dividend share to own for the long haul? … It's good to see Anglo American has been growing its earnings per share at 49% a year over the past 5 years. … Conclusion To summarise, shareholders should always check that Anglo American's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Anglo American plc (LON:AAL): What Does The Future Look Like?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Anglo American plc's (LON:AAL) most recent earnings update in December 2018a

Simply Wall St -

What Can We Expect From Anglo American plc's (LON:AAL) Earnings In Next 12 Months?

In June 2018, Anglo American plc (LON:AAL) released its earnings update. … as a -2.0% fall in profits is expected in the upcoming year

Simply Wall St -

Taking A Look At Anglo American plc's (LON:AAL) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Over the last twelve months Anglo American has recorded a ROE of 14%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Anglo American plc (LON:AAL) Insiders Have Been Selling

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Anglo American plc (LON:AAL). … Anglo American Insider Transactions Over The Last Year.

Simply Wall St -

A Look At The Intrinsic Value Of Anglo American plc (LON:AAL)

How far off is Anglo American plc (LON:AAL) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Buy Anglo American plc (LON:AAL) For Its Dividend?

Historically, Anglo American plc (LON:AAL) has paid dividends to shareholders, and these days it yields 5.2%. … Does Anglo American tick all the boxes of a great dividend stock? … See our latest analysis for Anglo American

Simply Wall St -

Is Anglo American plc's (LON:AAL) CEO Salary Justified?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Mark Cutifani's Compensation Compare With Similar Sized Companies. … Our data indicates that Anglo American plc is worth UK£20.8b, and total annual CEO compensation is US$4m.

Simply Wall St -

Has Anglo American plc (LON:AAL) Got Enough Cash?

With a market capitalization of UK£19.93b, Anglo American plc (LON:AAL) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These companies are resilient in times of low liquidity and are relatively unimpacted by interest rate hikes.

Simply Wall St -

Company Info

Description

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.

Details
Name: Anglo American plc
AAL
Exchange: LSE
Founded: 1917
£24,607,476,725
1,265,816,704
Website: http://www.angloamerican.com
Address: Anglo American plc
20 Carlton House Terrace,
London,
Greater London, SW1Y 5AN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AAL Ordinary Shares London Stock Exchange GB GBP 06. Jan 1975
OTCPK AAUK.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB NGLB Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
XTRA NGL Ordinary Shares XETRA Trading Platform DE EUR 06. Jan 1975
SWX AAM Ordinary Shares SIX Swiss Exchange CH CHF 06. Jan 1975
BSM ANGLO Ordinary Shares Botswana Share Market BW BWP 06. Jan 1975
BMV AGL N Ordinary Shares Bolsa Mexicana de Valores MX MXN 06. Jan 1975
NMSE ANM Ordinary Shares Namibian Stock Exchange NA ZAR 06. Jan 1975
JSE AGL Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 06. Jan 1975
BATS-CHIXE AALL Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Jan 1975
OTCPK NGLO.Y SPON ADR EACH REP 0.5 ORD Pink Sheets LLC US USD 14. Dec 1972
DB NGLD SPON ADR EACH REP 0.5 ORD Deutsche Boerse AG DE EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
64,000
Anglo American employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 21:07
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/03/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.