Don't overlook ALAMOS GOLD INC-CLASS A (NYSE:AGI)—a stock with solid growth prospects and a reasonable valuation.

Our stock screening tool has pinpointed ALAMOS GOLD INC-CLASS A (NYSE:AGI) as a growth stock that isn't overvalued. AGI is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Insights: AGI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of AGI, the assigned 9 reflects its growth potential:

• 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.
• The Revenue has grown by 31.62% in the past year. This is a very strong growth!
• AGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.44% yearly.
• AGI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.95% yearly.
• Based on estimates for the next years, AGI will show a very strong growth in Revenue. The Revenue will grow by 20.15% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Insights: AGI

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. AGI was assigned a score of 5 for valuation:

• Based on the Price/Earnings ratio, AGI is valued a bit cheaper than the industry average as 62.91% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, AGI is valued a bit cheaper than the industry average as 67.55% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• AGI has a very decent profitability rating, which may justify a higher PE ratio.
• AGI's earnings are expected to grow with 36.00% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

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. AGI has achieved a 5 out of 10:

• AGI has an Altman-Z score of 4.28. This indicates that AGI is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.28, AGI is in the better half of the industry, outperforming 70.86% of the companies in the same industry.
• AGI has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.18, AGI belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
• A Debt/Equity ratio of 0.08 indicates that AGI is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.08, AGI is doing good in the industry, outperforming 66.89% of the companies in the same industry.

Assessing Profitability for 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. AGI scores a 7 out of 10:

• With a decent Return On Assets value of 5.33%, AGI is doing good in the industry, outperforming 75.50% of the companies in the same industry.
• AGI has a Return On Equity of 7.93%. This is in the better half of the industry: AGI outperforms 73.51% of its industry peers.
• With a decent Return On Invested Capital value of 6.59%, AGI is doing good in the industry, outperforming 70.86% of the companies in the same industry.
• The 3 year average ROIC (5.13%) for AGI is below the current ROIC(6.59%), indicating increased profibility in the last year.
• AGI has a Profit Margin of 21.11%. This is amongst the best in the industry. AGI outperforms 88.74% of its industry peers.
• In the last couple of years the Profit Margin of AGI has grown nicely.
• The Operating Margin of AGI (37.48%) is better than 92.72% of its industry peers.
• In the last couple of years the Operating Margin of AGI has grown nicely.
• 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of AGI contains the most current fundamental analsysis.

Disclaimer

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.