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AAL

Anglo AmericanLSE:AAL Stock Report

Last Price

UK£34.30

Market Cap

UK£41.7b

7D

3.7%

1Y

30.5%

Updated

23 Jan, 2022

Data

Company Financials +
AAL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends5/6

AAL Stock Overview

Anglo American plc operates as a mining company worldwide.

Anglo American Competitors

Rio Tinto Group

LSE:RIO

UK£89.5b

Glencore

LSE:GLEN

UK£53.7b

Mining and Metallurgical Company Norilsk Nickel

LSE:MNOD

US$43.9b

Exxon Mobil

NYSE:XOM

US$305.5b

Price History & Performance

Summary of all time highs, changes and price drops for Anglo American
Historical stock prices
Current Share PriceUK£34.30
52 Week HighUK£35.76
52 Week LowUK£23.21
Beta1.27
1 Month Change12.79%
3 Month Change21.94%
1 Year Change30.52%
3 Year Change83.89%
5 Year Change150.51%
Change since IPO561.37%

Recent News & Updates

Jan 22
Is Anglo American plc (LON:AAL) Expensive For A Reason? A Look At Its Intrinsic Value

Is Anglo American plc (LON:AAL) Expensive For A Reason? A Look At Its Intrinsic Value

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Anglo American plc...

Dec 18
Is Anglo American (LON:AAL) A Risky Investment?

Is Anglo American (LON:AAL) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Nov 08
Do Anglo American's (LON:AAL) Earnings Warrant Your Attention?

Do Anglo American's (LON:AAL) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Oct 14
A Look At The Intrinsic Value Of Anglo American plc (LON:AAL)

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Anglo American plc...

Shareholder Returns

AALGB Metals and MiningGB Market
7D3.7%0.7%-1.3%
1Y30.5%2.6%7.8%

Return vs Industry: AAL exceeded the UK Metals and Mining industry which returned 2.6% over the past year.

Return vs Market: AAL exceeded the UK Market which returned 7.8% over the past year.

Price Volatility

Is AAL's price volatile compared to industry and market?
AAL volatility
AAL Average Weekly Movement5.0%
Metals and Mining Industry Average Movement7.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: AAL is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AAL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191795,000Mark Cutifanihttps://www.angloamerican.com

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, polyhalite, and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.

Anglo American Fundamentals Summary

How do Anglo American's earnings and revenue compare to its market cap?
AAL fundamental statistics
Market CapUS$56.55b
Earnings (TTM)US$6.81b
Revenue (TTM)US$42.49b

8.3x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAL income statement (TTM)
RevenueUS$42.49b
Cost of RevenueUS$18.08b
Gross ProfitUS$24.41b
ExpensesUS$17.61b
EarningsUS$6.81b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)5.60
Gross Margin57.45%
Net Profit Margin16.02%
Debt/Equity Ratio32.3%

How did AAL perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

44%

Payout Ratio

Valuation

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 (£34.3) is trading below our estimate of fair value (£81.79)

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 (8.3x) compared to the UK Metals and Mining industry average (8.2x).

PE vs Market: AAL is good value based on its PE Ratio (8.3x) compared to the UK market (18.9x).


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's PB Ratio (1.9x) is in line with the GB Metals and Mining industry average.


Future Growth

How is Anglo American forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-25.1%

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 (-25.1% per year).

Earnings vs Market: AAL's earnings are forecast to decline over the next 3 years (-25.1% per year).

High Growth Earnings: AAL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AAL's revenue is expected to decline over the next 3 years (-8.1% per year).

High Growth Revenue: AAL's revenue is forecast to decline over the next 3 years (-8.1% 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 (13.2%).


Past Performance

How has Anglo American performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAL has high quality earnings.

Growing Profit Margin: AAL's current net profit margins (16%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: AAL has become profitable over the past 5 years, growing earnings by 23% per year.

Accelerating Growth: AAL's earnings growth over the past year (218.8%) exceeds its 5-year average (23% per year).

Earnings vs Industry: AAL earnings growth over the past year (218.8%) exceeded the Metals and Mining industry 150.4%.


Return on Equity

High ROE: AAL's Return on Equity (25.7%) is considered high.


Financial Health

How is Anglo American's financial position?


Financial Position Analysis

Short Term Liabilities: AAL's short term assets ($22.5B) exceed its short term liabilities ($10.9B).

Long Term Liabilities: AAL's short term assets ($22.5B) exceed its long term liabilities ($20.5B).


Debt to Equity History and Analysis

Debt Level: AAL's net debt to equity ratio (3.2%) is considered satisfactory.

Reducing Debt: AAL's debt to equity ratio has reduced from 73.9% to 32.3% over the past 5 years.

Debt Coverage: AAL's debt is well covered by operating cash flow (116.6%).

Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (45x coverage).


Balance Sheet


Dividend

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

5.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AAL's dividend (5.23%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: AAL's dividend (5.23%) is in the top 25% of dividend payers in the UK market (4.08%)


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 (44.3%), 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 (43.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Materials industry.

Management

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

6.5yrs

Average management tenure


CEO

Mark Cutifani (63 yo)

8.75yrs

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 ($USD10.68M) is above average for companies of similar size in the UK market ($USD3.96M).

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 (6.5 years average tenure).


Board Members

Experienced Board: AAL's board of directors are considered experienced (4.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Anglo American plc's 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
  • Implied Market Cap: UK£41.710b
  • Shares outstanding: 1.22b
  • Website: https://www.angloamerican.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 18:43
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.