ALAMOS GOLD INC-CLASS A (NYSE:AGI): a strong growth stock preparing for the next leg up?.

In this article, we'll take a closer look at ALAMOS GOLD INC-CLASS A (NYSE:AGI) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ALAMOS GOLD INC-CLASS A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. AGI has earned a 9 for growth:

• AGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.83%, which is quite impressive.
• 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.
• Looking at the last year, AGI shows a very strong growth in Revenue. The Revenue has grown by 31.62%.
• 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 36.54% yearly.
• The Revenue is expected to grow by 20.15% on average over the next years. This is a very strong growth
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for AGI

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. AGI has earned a 5 out of 10:

• An Altman-Z score of 4.30 indicates that AGI is not in any danger for bankruptcy at the moment.
• The Altman-Z score of AGI (4.30) is better than 70.86% of its industry peers.
• The Debt to FCF ratio of AGI is 1.18, which is an excellent value as it means it would take AGI, only 1.18 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 1.18, AGI belongs to the best of the industry, outperforming 86.75% of the companies in the same industry.
• A Debt/Equity ratio of 0.08 indicates that AGI is not too dependend on debt financing.
• AGI has a better Debt to Equity ratio (0.08) than 66.89% of its industry peers.

Understanding AGI's Profitability

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. AGI scores a 7 out of 10:

• The Return On Assets of AGI (5.33%) is better than 76.16% of its industry peers.
• AGI has a better Return On Equity (7.93%) than 72.85% of its industry peers.
• With a decent Return On Invested Capital value of 6.59%, AGI is doing good in the industry, outperforming 72.85% of the companies in the same industry.
• The last Return On Invested Capital (6.59%) for AGI is above the 3 year average (5.13%), which is a sign of increasing profitability.
• AGI's Profit Margin of 21.11% is amongst the best of the industry. AGI outperforms 88.74% 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 37.48%, AGI belongs to the top of the industry, outperforming 92.72% of the companies in the same industry.
• AGI's Operating Margin has improved in the last couple of years.
• With an excellent Gross Margin value of 44.23%, AGI belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. AGI currently has a 8 as setup rating:

Besides having an excellent technical rating, AGI also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 26.21, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

For an up to date full technical analysis you can check the technical report of AGI

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.