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Anglo American (NGLOY)
:NGLOY
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Anglo American (NGLOY) AI Stock Analysis

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NGLOY

Anglo American

(OTC:NGLOY)

Rating:58Neutral
Price Target:
$15.00
▲(9.01% Upside)
Anglo American's overall score reflects strengths in cash flow and strategic initiatives despite declining revenues and profitability. Technical indicators point to bearish trends, and valuation metrics are mixed, with a negative P/E but a reasonable dividend yield. The earnings call provided some optimism through cost savings and portfolio simplification, but safety challenges and market downturns pose risks.

Anglo American (NGLOY) vs. SPDR S&P 500 ETF (SPY)

Anglo American Business Overview & Revenue Model

Company DescriptionAnglo American plc is a leading global mining company with a diversified portfolio of operations spanning across multiple continents. The company engages in the exploration, extraction, and processing of a variety of minerals and metals, with core products including diamonds, platinum group metals, copper, nickel, iron ore, and coal. Anglo American operates in sectors such as mining, processing, and marketing of natural resources, with a focus on sustainability and innovation in mining practices.
How the Company Makes MoneyAnglo American makes money primarily through the extraction, processing, and sale of minerals and metals. The company generates revenue from its diverse portfolio of products, including diamonds, platinum group metals, copper, nickel, iron ore, and coal, which are sold to industrial consumers and markets worldwide. Key revenue streams include the De Beers Group for diamonds, the Platinum Group Metals division for platinum and related metals, and the Base Metals division for copper and nickel. Additionally, the company operates in the bulk commodities market with iron ore and coal. Significant partnerships and joint ventures, such as those with local governments and other mining companies, also contribute to its earnings by optimizing operations and accessing new resources. Market demand, commodity prices, and operational efficiency are critical factors influencing Anglo American's revenue.

Anglo American Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q4-2024)
|
% Change Since: -7.22%|
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive sentiment with significant achievements in cost savings, portfolio simplification, and operational efficiencies, which helped stabilize margins despite lower commodity prices. However, there were notable challenges, including workplace fatalities and a downturn in the diamond market, which were serious concerns.
Q4-2024 Updates
Positive Updates
Stable EBITDA Margins Despite Price Drops
Despite a 10% fall in basket price, Anglo American maintained stable EBITDA margins at 30%, resulting in a full-year EBITDA of $8.5 billion.
Significant Cost Savings Achieved
Anglo American realized cost savings of $1 billion in 2024, equivalent to $1.3 billion on a run-rate basis, with a target of $1.8 billion by the end of 2025.
Successful Portfolio Simplification
The company agreed on the sale of its steelmaking coal business for up to $4.8 billion and its nickel business for up to $500 million, further simplifying its portfolio.
Copper and Iron Ore Performance
Copper and iron ore represented 76% of EBITDA, with margins of 50% and 40% respectively, supported by cost-saving measures and operational efficiencies.
Progress in Safety Initiatives
The company improved its lost-time injury frequency rates by 28% over two years, marking 2024 as its best-ever year in this aspect.
Negative Updates
Workplace Fatalities
The company reported three workplace fatalities in 2024, highlighting ongoing safety challenges.
Challenges in Diamond Market
De Beers faced a challenging year with a significant decline in rough diamond sales in the second half of 2024, leading to a $2.9 billion impairment.
Impact of Lower Commodity Prices
Revenue was 12% lower due to a 10% reduction in basket price, impacting overall financial performance.
Company Guidance
In the recent call, Anglo American provided detailed guidance on their performance and strategic initiatives, highlighting several key metrics. For 2024, they reported a stable EBITDA margin of 30% despite a 10% drop in basket prices, achieving a full-year EBITDA of $8.5 billion. The company realized $1 billion in cost savings and maintained net debt at $10.6 billion. They also announced a significant steelmaking coal sale valued at up to $4.8 billion. Looking ahead, Anglo American plans to continue focusing on copper, iron ore, and crop nutrients as their strategic pillars, with production guidance remaining stable for 2025 and 2026 and new guidance for 2027 aligning with prior expectations. The company also emphasized their commitment to safety, achieving a 28% improvement in injury rates since 2022.

Anglo American Financial Statement Overview

Summary
NGLOD faces challenges with declining revenues and profitability, indicated by a negative net profit margin and increased leverage. However, its cash flow remains strong, with positive free cash flow growth and healthy operating cash flow, reflecting efficient cash management despite profitability issues.
Income Statement
55
Neutral
The company's revenue has decreased significantly from 2022 to 2024, with a negative revenue growth rate. The gross profit margin for 2024 is relatively strong as gross profit matches total revenue, but the net profit margin is negative due to substantial net losses. EBIT and EBITDA margins have also declined, indicating challenges in maintaining profitability.
Balance Sheet
60
Neutral
The debt-to-equity ratio indicates moderate leverage, but it has increased as equity decreased over time. The equity ratio has decreased, reflecting a reduction in equity financing relative to total assets. Return on equity is negative due to net losses, suggesting inefficiencies in generating returns from equity.
Cash Flow
70
Positive
Free cash flow has shown growth from 2023 to 2024, which is a positive sign. Operating cash flow remains healthy relative to net income, indicating strong cash generation capabilities despite net losses. The free cash flow to net income ratio is positive, reflecting efficient cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.29B30.65B35.12B41.55B25.45B
Gross Profit9.92B15.04B21.82B28.30B15.91B
EBITDA3.32B7.27B12.44B19.73B8.62B
Net Income-3.07B283.00M4.51B8.56B2.09B
Balance Sheet
Total Assets64.87B66.54B67.41B65.98B62.53B
Cash, Cash Equivalents and Short-Term Investments8.20B5.60B8.46B9.12B7.53B
Total Debt18.21B16.91B14.37B12.86B13.51B
Total Liabilities36.33B34.93B33.38B31.21B29.77B
Stockholders Equity20.76B25.06B27.36B27.82B25.82B
Cash Flow
Free Cash Flow2.49B484.00M3.57B10.99B1.97B
Operating Cash Flow8.10B6.50B9.77B16.72B6.62B
Investing Cash Flow-5.13B-5.56B-5.82B-5.56B-4.74B
Financing Cash Flow-840.00M-3.22B-4.37B-9.36B-716.00M

Anglo American Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.76
Price Trends
50DMA
14.76
Negative
100DMA
14.20
Negative
200DMA
14.48
Negative
Market Momentum
MACD
-0.05
Positive
RSI
34.12
Neutral
STOCH
0.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGLOY, the sentiment is Negative. The current price of 13.76 is below the 20-day moving average (MA) of 15.05, below the 50-day MA of 14.76, and below the 200-day MA of 14.48, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 0.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NGLOY.

Anglo American Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$131.50B11.4126.13%4.86%-3.15%54.08%
75
Outperform
$101.63B9.4518.18%6.73%0.03%-3.78%
74
Outperform
$42.31B8.2013.49%8.56%-12.89%-46.86%
64
Neutral
$12.11B-9.62%4.63%-3189.81%
58
Neutral
$30.12B-9.21%2.25%-25.45%-169.04%
47
Neutral
$637.03M-16.64%2.17%12.30%42.72%
44
Neutral
C$863.02M-6.77-14.90%2.78%16.54%-27.01%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NGLOY
Anglo American
13.89
0.36
2.66%
BHP
BHP Group
51.13
0.44
0.87%
RIO
Rio Tinto
59.70
0.68
1.15%
VALE
Vale SA
9.87
0.15
1.54%
NEXA
Nexa Resources SA
4.81
-1.37
-22.17%
MP
MP Materials
68.39
57.42
523.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025