The average target price of ANG.JO is 88423 and suggests 13% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 109600.0. This translates into 40% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 66500.0. This is equivalent to 15% downside potential in the worst case. 

AngloGold Ashanti Plc operates as a gold mining company in Africa, the Americas, and Australia. Its flagship property is a 100% owned Geita project located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. The company also explores for silver and sulphuric acid. AngloGold Ashanti Limited was incorporated in 1944 and is headquartered in Johannesburg, South Africa.

AngloGold Ashanti Plc

Basic Materials

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been moderate and on par with its peers. The company distributes nearly all its profit as dividends (payout ratio above 90%, a negative factor). It will not be easy to sustain such an extreme payout ratio. It may also indicate a company's lack of profitable growth opportunities, which suggests doubtful prospects. On average, the company pays dividends twice a year. 

ANG.JO reported revenue of USD 3 131mn in the last 12 months, down 32% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 56ppts and its growth accelerated by 2ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 38.0% in the last 12 months, a decline from 44.6% in FY23. 

Historically, ANG.JO has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 23.1%, a growth from 17.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 6.8% in the last 12 months, a decrease from 12.4% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 7.7%, below the peers. 

AngloGold Ashanti Plc reported a return on equity (RoE) of 14.0% in the last 12 months, down from 25.9% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.5 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

ANG.JO has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note robust profitability, solid return on capital, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to slow historical revenue growth, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, ANG.JO is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, ANG.JO is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, underpriced on P/FCF. 

AngloGold Ashanti Plc

ZAC 83682.5

5

AngloGold Ashanti Plc

ZAC 83682.5

5

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

ZAC 83682.5

About

About

AngloGold Ashanti Plc

ZAC 83682.5

5

AngloGold Ashanti Plc

ZAC 83682.5

5

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

ZAC 83682.5

About

About

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