Our stock screener has singled out ALAMOS GOLD INC-CLASS A (NYSE:AGI) as an attractive growth opportunity. NYSE:AGI is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.
Exploring NYSE:AGI's Growth
A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:AGI has received a 8 out of 10:
- The Earnings Per Share has grown by an impressive 36.00% over the past year.
- Measured over the past years, AGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 60.35% on average per year.
- The Revenue has grown by 22.50% in the past year. This is a very strong growth!
- Measured over the past years, AGI shows a quite strong growth in Revenue. The Revenue has been growing by 9.44% on average per year.
- AGI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.38% yearly.
- AGI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
Evaluating Valuation: NYSE:AGI
ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:AGI scores a 6 out of 10:
- AGI's Price/Earnings ratio is a bit cheaper when compared to the industry. AGI is cheaper than 60.26% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.78. AGI is valued slightly cheaper when compared to this.
- AGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGI is cheaper than 67.95% of the companies in the same industry.
- AGI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of AGI may justify a higher PE ratio.
- A more expensive valuation may be justified as AGI's earnings are expected to grow with 35.43% in the coming years.
ChartMill's Evaluation of Health
Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AGI has achieved a 6 out of 10:
- An Altman-Z score of 3.24 indicates that AGI is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.24, AGI is in the better half of the industry, outperforming 60.26% of the companies in the same industry.
- The Debt to FCF ratio of AGI is 1.45, which is an excellent value as it means it would take AGI, only 1.45 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.45, AGI belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
- AGI has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
- AGI has a Debt to Equity ratio of 0.08. This is in the better half of the industry: AGI outperforms 60.90% of its industry peers.
- The current and quick ratio evaluation for AGI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Profitability Insights: NYSE:AGI
ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:AGI scores a 8 out of 10:
- AGI's Return On Assets of 4.61% is fine compared to the rest of the industry. AGI outperforms 74.36% of its industry peers.
- The Return On Equity of AGI (6.95%) is better than 70.51% of its industry peers.
- AGI has a better Return On Invested Capital (6.72%) than 71.79% of its industry peers.
- The 3 year average ROIC (5.43%) for AGI is below the current ROIC(6.72%), indicating increased profibility in the last year.
- AGI's Profit Margin of 19.89% is amongst the best of the industry. AGI outperforms 91.03% of its industry peers.
- AGI's Profit Margin has improved in the last couple of years.
- The Operating Margin of AGI (34.13%) is better than 91.03% of its industry peers.
- In the last couple of years the Operating Margin of AGI has grown nicely.
- AGI has a better Gross Margin (45.64%) than 85.90% of its industry peers.
- AGI's Gross Margin has improved in the last couple of years.
Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.
For an up to date full fundamental analysis you can check the fundamental report of AGI
Keep in mind
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.