Anglo American (LSE:AAL) - Share price, News & Analysis

AAL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	5/6
Dividends	5/6

AAL Stock Overview

Anglo American plc operates as a mining company worldwide.

Rewards

Trading at 14.9% below our estimate of its fair value

Earnings grew by 309.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 15.2% per year for the next 3 years

Unstable dividend track record

Anglo American Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Anglo American
Historical stock prices
Current Share Price	UK£30.66
52 Week High	UK£42.93
52 Week Low	UK£23.50
Beta	1.27
1 Month Change	-17.24%
3 Month Change	-22.95%
1 Year Change	3.35%
3 Year Change	36.60%
5 Year Change	199.41%
Change since IPO	491.27%

Recent News & Updates

May 22

With EPS Growth And More, Anglo American (LON:AAL) Is Interesting

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	AAL	GB Metals and Mining	GB Market
7D	-8.3%	-8.2%	-0.3%
1Y	3.4%	-10.0%	-10.4%

Return vs Industry: AAL exceeded the UK Metals and Mining industry which returned -10% over the past year.

Return vs Market: AAL exceeded the UK Market which returned -10.4% over the past year.

Price Volatility

Is AAL's price volatile compared to industry and market?
AAL volatility
AAL Average Weekly Movement	7.1%
Metals and Mining Industry Average Movement	7.6%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: AAL is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AAL's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1917	106,000	Mark Cutifani	https://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 ore; 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 Cap	US$45.75b
Earnings (TTM)	US$8.56b
Revenue (TTM)	US$41.55b

5.3x

P/E Ratio

1.1x

P/S Ratio

Is AAL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAL income statement (TTM)
Revenue	US$41.55b
Cost of Revenue	US$13.36b
Gross Profit	US$28.19b
Other Expenses	US$19.63b
Earnings	US$8.56b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	7.05
Gross Margin	67.84%
Net Profit Margin	20.60%
Debt/Equity Ratio	34.7%

How did AAL perform over the long term?

See historical performance and comparison

Dividends

7.7%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is AAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AAL. This is calculated by dividing AAL's market cap by their current preferred multiple.
What is AAL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$45.75b

AAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	2.8x
PEG Ratio	-0.4x

Price to Earnings Ratio vs Peers

How does AAL's PE Ratio compare to its peers?

AAL PE Ratio vs Peers

The above table shows the PE ratio for AAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.5x

Forward PE

Price-To-Earnings vs Peers: AAL is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does AAL's PE Ratio compare vs other companies in the U.K. Metals and Mining Industry?

Price-To-Earnings vs Industry: AAL is good value based on its Price-To-Earnings Ratio (5.3x) compared to the UK Metals and Mining industry average (5.5x)

Price to Earnings Ratio vs Fair Ratio

What is AAL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.3x
Fair PE Ratio	10.9x

Price-To-Earnings vs Fair Ratio: AAL is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.9x).

Share Price vs Fair Value

What is the Fair Price of AAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAL (£30.66) is trading below our estimate of fair value (£36.02)

Significantly Below Fair Value: AAL is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: AAL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-15.2%

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 (-15.2% per year).

Earnings vs Market: AAL's earnings are forecast to decline over the next 3 years (-15.2% 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 (-4.9% per year).

High Growth Revenue: AAL's revenue is forecast to decline over the next 3 years (-4.9% 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 (15.1%).

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Past Performance

How has Anglo American performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAL has high quality earnings.

Growing Profit Margin: AAL's current net profit margins (20.6%) are higher than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: AAL's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: AAL's earnings growth over the past year (309.9%) exceeds its 5-year average (17.6% per year).

Earnings vs Industry: AAL earnings growth over the past year (309.9%) exceeded the Metals and Mining industry 41.5%.

Return on Equity

High ROE: AAL's Return on Equity (33.6%) is considered high.

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Financial Health

How is Anglo American's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AAL's short term assets ($19.0B) exceed its short term liabilities ($10.6B).

Long Term Liabilities: AAL's short term assets ($19.0B) do not cover its long term liabilities ($20.6B).

Debt to Equity History and Analysis

Debt Level: AAL's net debt to equity ratio (8.5%) is considered satisfactory.

Reducing Debt: AAL's debt to equity ratio has reduced from 53.9% to 34.7% over the past 5 years.

Debt Coverage: AAL's debt is well covered by operating cash flow (138.7%).

Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (67.4x coverage).

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AAL's dividend (7.67%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: AAL's dividend (7.67%) is in the top 25% of dividend payers in the UK market (5.23%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.7%), AAL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (32.1%), AAL's dividend payments are well covered by cash flows.

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Management

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

6.5yrs

Average management tenure

CEO

Mark Cutifani (63 yo)

9.17yrs

Tenure

US$13,306,342

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 ($USD13.31M) is above average for companies of similar size in the UK market ($USD5.28M).

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 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31