Anglogold Ashanti PLC's Meteoric Rise: Unpacking the 11% Surge in Just 3 Months

Anglogold Ashanti PLC (AU, Financial) has experienced a notable uptick in its stock performance, with a market capitalization that now stands at $8.86 billion. The current price of the stock is $21.11, reflecting a significant 13.98% gain over the past week and an 11.05% gain over the past three months. This recent surge has brought the company's valuation in line with the GF Value of $22.73, which suggests that the stock is now fairly valued, compared to its previous status of being modestly undervalued when the GF Value was at $22.55.

Introduction to Anglogold Ashanti PLC

Anglogold Ashanti PLC operates within the metals and mining industry, primarily as a gold miner with additional by-products including silver and sulphuric acid. The company's operations span across Africa, Australia, and the Americas, with a significant portion of its revenue generated from African regions such as Ghana, Guinea, Mali, the Democratic Republic of the Congo, and Tanzania. 1765017164101873664.png

Assessing Profitability

Anglogold Ashanti's Profitability Rank stands at 6/10, indicating a moderate level of profitability within the industry. The company's operating margin is an impressive 13.68%, which is better than 75.74% of 849 companies in the same sector. When it comes to return on equity, the company's ROE is 0.94%, surpassing 79.73% of its peers. Similarly, its return on assets (ROA) at 0.48% is better than 81.13% of competitors, and the return on invested capital (ROIC) at 2.94% is higher than 85.77% of similar companies. Anglogold Ashanti has managed to maintain profitability for 5 out of the past 10 years, which is better than 68.9% of 1196 companies in the industry. 1765017181990580224.png

Growth Prospects of Anglogold Ashanti

The company's Growth Rank is 7/10, reflecting a strong growth trajectory. Anglogold Ashanti has achieved a 3-year revenue growth rate per share of 8.50%, outperforming 43.32% of 584 companies in the sector. Over a 5-year period, the revenue growth rate per share stands at 6.50%, which is better than 45.01% of 511 companies. The estimated total revenue growth rate for the next 3 to 5 years is 3.32%, surpassing 46.54% of 159 companies. The 3-year EPS without NRI growth rate is 12.30%, which is higher than 52.72% of 1749 companies, and the 5-year EPS without NRI growth rate is an impressive 74.00%, outperforming 98.9% of 1358 companies. 1765017200160305152.png

Notable Shareholders and Competitive Landscape

Anglogold Ashanti's shareholder base includes prominent investors such as First Eagle Investment (Trades, Portfolio), holding 6,003,149 shares (1.43%), Howard Marks (Trades, Portfolio) with 5,874,951 shares (1.4%), and John Paulson (Trades, Portfolio) who owns 3,833,492 shares (0.91%). In comparison to its competitors, Anglogold Ashanti has a larger market cap than Royal Gold Inc (RGLD, Financial) at $7.25 billion, Coeur Mining Inc (CDE, Financial) at $1.14 billion, and Seabridge Gold Inc (SA, Financial) at $1.05 billion, indicating a strong position within the metals and mining industry.

Conclusion

In summary, Anglogold Ashanti PLC has demonstrated robust stock performance and valuation over the recent months. The company's profitability and growth metrics are commendable, especially when viewed in the context of the broader industry. With significant shareholders and a competitive edge over its closest market rivals, Anglogold Ashanti is well-positioned to maintain its upward trajectory. Investors and market watchers will undoubtedly keep a close eye on this gold mining giant as it continues to navigate the dynamic landscape of the metals and mining sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.