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Market Cap

UK£42.0b

Last Updated

2021/05/12 01:44 UTC

Data Sources

Company Financials +

Executive Summary

Anglo American plc operates as a mining company worldwide. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AAL's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

AAL

8.4%

GB Metals and Mining

2.4%

GB Market


1 Year Return

146.4%

AAL

82.8%

GB Metals and Mining

25.6%

GB Market

Return vs Industry: AAL exceeded the UK Metals and Mining industry which returned 82.8% over the past year.

Return vs Market: AAL exceeded the UK Market which returned 25.6% over the past year.


Shareholder returns

AALIndustryMarket
7 Day3.8%8.4%2.4%
30 Day12.1%14.5%3.4%
90 Day27.4%17.6%9.1%
1 Year153.7%146.4%92.2%82.8%31.1%25.6%
3 Year103.8%79.4%67.5%44.0%13.0%-0.03%
5 Year569.4%460.1%275.3%188.0%51.0%22.4%

Long-Term 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

Valuation

Is Anglo American undervalued compared to its fair value and its price relative to the market?

28.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAL (£33.95) is trading above our estimate of fair value (£28.39)

Significantly Below Fair Value: AAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AAL is poor value based on its PE Ratio (28.5x) compared to the UK Metals and Mining industry average (12.7x).

PE vs Market: AAL is poor value based on its PE Ratio (28.5x) compared to the UK market (26.4x).


Price to Earnings Growth Ratio

PEG Ratio: AAL is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: AAL is overvalued based on its PB Ratio (2.3x) compared to the GB Metals and Mining industry average (2.2x).


Future Growth

How is Anglo American forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAL's forecast earnings growth (9% per year) is above the savings rate (0.9%).

Earnings vs Market: AAL's earnings (9% per year) are forecast to grow slower than the UK market (17.4% per year).

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

Revenue vs Market: AAL's revenue (1.6% per year) is forecast to grow slower than the UK market (5.2% per year).

High Growth Revenue: AAL's revenue (1.6% 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 (13.5%).


Past Performance

How has Anglo American performed over the past 5 years?

37.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAL has high quality earnings.

Growing Profit Margin: AAL's current net profit margins (6.8%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: AAL has become profitable over the past 5 years, growing earnings by 37.3% 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 (-41%) over the past year, making it difficult to compare to the Metals and Mining industry average (18.4%).


Return on Equity

High ROE: AAL's Return on Equity (10.2%) is considered low.


Financial Health

How is Anglo American's financial position?


Financial Position Analysis

Short Term Liabilities: AAL's short term assets ($17.5B) exceed its short term liabilities ($9.1B).

Long Term Liabilities: AAL's short term assets ($17.5B) do not cover its long term liabilities ($20.7B).


Debt to Equity History and Analysis

Debt Level: AAL's debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: AAL's debt to equity ratio has reduced from 83.8% to 39.7% over the past 5 years.

Debt Coverage: AAL's debt is well covered by operating cash flow (50.9%).

Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (16.5x coverage).


Balance Sheet


Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAL's dividend (2.08%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: AAL's dividend (2.08%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


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 reasonable payout ratio (59.3%), AAL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AAL's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Mark Cutifani (62 yo)

8.08yrs

Tenure

US$10,675,277

Compensation

Mr. Mark Cutifani, BE (Mining), CEngFIMMM, DBA (Hon), DoL (Hon), FAusIMM, FREng, has been the Chief Executive of Anglo American Plc since April 03, 2013 and Anglo American Australia Limited since April 201...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD10.68M) is above average for companies of similar size in the UK market ($USD3.62M).

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


Leadership Team

Experienced Management: AAL's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: AAL's board of directors are considered experienced (3.7 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

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£42.050b
  • Shares outstanding: 1.24b
  • Website: https://www.angloamerican.com

Number of Employees


Location

  • Anglo American plc
  • 17 Charterhouse Street
  • London
  • Greater London
  • EC1N 6RA
  • United Kingdom

Listings


Biography

Anglo American plc operates as a mining company worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron; and nickel, polyhal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/12 01:44
End of Day Share Price2021/05/11 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.