For those who appreciate growth without the sticker shock, NYSE:AGI is worth considering.

ALAMOS GOLD INC-CLASS A (NYSE:AGI) was identified as an affordable growth stock by our stock screener. NYSE:AGI is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Examination for NYSE:AGI

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:AGI was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 36.00% over the past year.
• The Earnings Per Share has been growing by 60.35% on average over the past years. This is a very strong growth
• 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.
• Based on estimates for the next years, AGI will show a very strong growth in Earnings Per Share. The EPS will grow by 35.04% on average per year.
• AGI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.15% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for NYSE:AGI

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:AGI boasts a 6 out of 10:

• When comparing the Price/Forward Earnings ratio of AGI to the average of the S&P500 Index (24.37), we can say AGI is valued slightly cheaper.
• AGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AGI is cheaper than 65.31% 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.
• AGI's earnings are expected to grow with 35.43% in the coming years. This may justify a more expensive valuation.

Unpacking NYSE:AGI's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AGI has received a 6 out of 10:

• AGI has an Altman-Z score of 3.06. This indicates that AGI is financially healthy and has little risk of bankruptcy at the moment.
• 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.
• AGI has a better Debt to FCF ratio (1.45) than 80.27% of its industry peers.
• AGI has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.08, AGI is doing good in the industry, outperforming 61.22% of the companies in the same industry.
• 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.

A Closer Look at Profitability for NYSE:AGI

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:AGI, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 4.61%, AGI is in the better half of the industry, outperforming 74.83% of the companies in the same industry.
• With a decent Return On Equity value of 6.95%, AGI is doing good in the industry, outperforming 70.75% of the companies in the same industry.
• AGI has a better Return On Invested Capital (6.72%) than 72.11% of its industry peers.
• The last Return On Invested Capital (6.72%) for AGI is above the 3 year average (5.43%), which is a sign of increasing profitability.
• The Profit Margin of AGI (19.89%) is better than 90.48% of its industry peers.
• In the last couple of years the Profit Margin of AGI has grown nicely.
• Looking at the Operating Margin, with a value of 34.13%, AGI belongs to the top of the industry, outperforming 91.16% of the companies in the same industry.
• AGI's Operating Margin has improved in the last couple of years.
• AGI has a Gross Margin of 45.64%. This is amongst the best in the industry. AGI outperforms 85.03% of its industry peers.
• AGI's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of AGI for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.