LSE:AAL

Stock Analysis Report

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Executive Summary

Anglo American plc, together with its subsidiaries, engages in exploring, mining, and processing various metals and minerals worldwide. More Details


Snowflake Analysis

Good value with adequate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.01%

AAL

-0.9%

GB Metals and Mining

-1.9%

GB Market


1 Year Return

-1.5%

AAL

6.7%

GB Metals and Mining

-16.2%

GB Market

Return vs Industry: AAL underperformed the UK Metals and Mining industry which returned 8% over the past year.

Return vs Market: AAL exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

AALIndustryMarket
7 Day-0.01%-0.9%-1.9%
30 Day4.2%0.07%0.7%
90 Day-0.6%-1.6%-4.8%
1 Year2.2%-1.5%11.9%6.7%-13.0%-16.2%
3 Year57.2%37.9%25.0%5.0%-9.4%-20.6%
5 Year306.7%246.5%150.7%91.8%13.5%-12.0%

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?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAL (£19.51) is trading below our estimate of fair value (£37.16)

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


Price To Earnings Ratio

PE vs Industry: AAL is poor value based on its PE Ratio (15x) compared to the GB Metals and Mining industry average (13.1x).

PE vs Market: AAL is good value based on its PE Ratio (15x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AAL is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AAL is good value based on its PB Ratio (1.4x) compared to the GB Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAL's forecast earnings growth (5% per year) is above the savings rate (1.2%).

Earnings vs Market: AAL's earnings (5% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: AAL's revenue (2.9% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: AAL's revenue (2.9% 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 (8.7%).


Next Steps

Past Performance

How has Anglo American performed over the past 5 years?

55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAL has high quality earnings.

Growing Profit Margin: AAL's current net profit margins (7.7%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: AAL has become profitable over the past 5 years, growing earnings by 55% 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 (-48.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-21.7%).


Return on Equity

High ROE: AAL's Return on Equity (10.1%) 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 ($14.7B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: AAL's short term assets ($14.7B) do not cover its long term liabilities ($18.9B).


Debt to Equity History and Analysis

Debt Level: AAL's debt to equity ratio (46.5%) is considered high.

Reducing Debt: AAL's debt to equity ratio has reduced from 68.5% to 46.5% over the past 5 years.

Debt Coverage: AAL's debt is well covered by operating cash flow (40.7%).

Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAL's dividend (4.25%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AAL's dividend (4.25%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


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 (43.8%), 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 (41.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Mark Cutifani (62 yo)

7.5yrs

Tenure

US$11,255,000

Compensation

Mr. Mark Cutifani, BE (Mining), Fellow AusIMM, 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 ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD19.59M) is above average for companies of similar size in the UK market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Cutifani
CEO & Director7.5yrsUS$11.26m0.081%
$ 19.4m
Stephen Pearce
Finance Director & Executive Director3.5yrsUS$6.72m0.022%
$ 5.2m
Anthony O'Neill
Technical Director & Director5.25yrsUS$7.07m0.040%
$ 9.6m
Dorian Emmett
COO & Executive Director of Anglo American Platinum Corporation Limited24.75yrsno datano data
Paul Galloway
Group Head of Investor Relationsno datano datano data
Richard J. Price
Group General Counsel & Company Secretary3.42yrsno datano data
Anik Michaud
Group Director of Corporate Relations5.58yrsno data0.013%
$ 3.0m
Peter Whitcutt
Chief Executive Officer of Marketing4.75yrsno data0.022%
$ 5.3m
Didier Charreton
Group Director of People & Organisation4.83yrsno datano data
Seamus French
Chief Executive Officer of Bulk Commodities & Other Minerals4.08yrsno data0.031%
$ 7.6m
Ruben Fernandes
Chief Executive Officer of Base Metals1.58yrsno datano data
Alexander Schmitt
Head of Marketing & Sales - Base and Specialty Metals10.08yrsno datano data

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: AAL's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Cutifani
CEO & Director7.5yrsUS$11.26m0.081%
$ 19.4m
Stephen Pearce
Finance Director & Executive Director3.5yrsUS$6.72m0.022%
$ 5.2m
Anthony O'Neill
Technical Director & Director5.25yrsUS$7.07m0.040%
$ 9.6m
Dorian Emmett
COO & Executive Director of Anglo American Platinum Corporation Limited24.75yrsno datano data
Anne Stevens
Independent Non-Executive Director8.42yrsUS$139.00k0.00017%
$ 40.9k
Byron Grote
Senior Independent Director1.75yrsUS$169.00k0.0033%
$ 796.8k
Stuart Chambers
Chairman of the Board2.92yrsUS$705.00k0.00097%
$ 233.5k
Ian Ashby
Independent Non-Executive Director3.25yrsUS$132.00k0.00018%
$ 43.3k
James Rutherford
Independent Non-Executive Director6.92yrsUS$126.00k0.0030%
$ 712.5k
Hixonia Nyasulu
Independent Non-Executive Director0.92yrUS$15.00kno data
Nonkululeko Merina Nyembezi
Independent Non-Executive Director0.75yrno datano data
Marcelo Bastos
Independent Non-Executive Director1.5yrsUS$77.00k0.00012%
$ 28.9k

3.4yrs

Average Tenure

63yo

Average Age

Experienced Board: AAL's board of directors are considered experienced (3.4 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£24.072b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGLDDB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.5 ORDDEEURDec 1972
NGLO.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.5 ORDUSUSDDec 1972
NGLCXTRA (XETRA Trading Platform)UNSP ADR EACH REPR 0.5 ORDDEEURDec 1972
AAUK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
AALLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1975
NGLBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
AGLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1975
ANMNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1975
AAMSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1975
ANGLOBSM (Botswana Share Market)YesOrdinary SharesBWBWPJan 1975
NGLBXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1975
AALLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1975
AGL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 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, platinu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:46
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.