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Anglo American (NGLOY)
OTHER OTC:NGLOY
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Anglo American
(OTC:NGLOY)
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Rating:63Neutral
Price Target:
$18.00
▼(-6.05% Downside)
The overall stock score is primarily influenced by strong technical analysis, indicating bullish momentum. However, financial performance is a concern due to declining revenues and profitability, which is partially offset by strong cash flow management. Valuation is weak due to a negative P/E ratio and low dividend yield, which further impacts the overall score.
Anglo American (NGLOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.69B
Dividend Yield0.68%
Average Volume (3M)30.31K
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-25.45%
EPS Growth-169.04%
CountryUS
Employees55,542
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.20
Shares Outstanding2,356,100,600
10 Day Avg. Volume28,567
30 Day Avg. Volume30,310
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.96
Price to Sales (P/S)1.49
P/FCF Ratio16.31
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda17.19
Forecast
1Y Price Target
$19.00Price Target Upside-0.84% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Anglo American Business Overview & Revenue Model
Company DescriptionAnglo American plc operates as a mining company worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron ore; and nickel, polyhalite, and manganese ores, as well as alloys. Anglo American plc was founded in 1917 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyAnglo American generates revenue primarily through the extraction and sale of minerals and metals. Its key revenue streams include the production and marketing of diamonds (through its De Beers brand), platinum group metals, copper, iron ore, and nickel. The company benefits from long-term contracts, spot market sales, and a robust supply chain that connects its mines to global markets. Significant partnerships, particularly in diamond marketing and production, as well as joint ventures in various mining operations, contribute to its earnings. Additionally, fluctuations in commodity prices, demand from industrial sectors, and global economic conditions play crucial roles in determining the company's overall financial performance.
Anglo American Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q4-2024)
| % Change Since: |
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
Anglo American faces challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet shows increased leverage and decreased equity, raising concerns about financial stability. However, cash flow remains a strong point, with positive free cash flow growth and healthy operating cash flow, suggesting resilience in cash management despite profitability issues.Income Statement
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.55
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.86B | 27.29B | 30.65B | 35.12B | 41.55B | 25.45B |
| Gross Profit | 9.70B | 16.13B | 15.04B | 21.82B | 28.30B | 15.91B |
| EBITDA | 2.92B | 3.32B | 7.27B | 12.44B | 19.73B | 8.62B |
| Net Income | -4.25B | -3.07B | 283.00M | 4.51B | 8.56B | 2.09B |
Balance Sheet | ||||||
| Total Assets | 57.27B | 64.87B | 66.54B | 67.41B | 65.98B | 62.53B |
| Cash, Cash Equivalents and Short-Term Investments | 8.14B | 8.20B | 6.14B | 8.46B | 9.12B | 7.53B |
| Total Debt | 16.99B | 18.21B | 16.91B | 14.37B | 12.86B | 13.51B |
| Total Liabilities | 31.69B | 36.33B | 34.93B | 33.38B | 31.21B | 29.77B |
| Stockholders Equity | 19.34B | 20.76B | 25.06B | 27.36B | 27.82B | 25.82B |
Cash Flow | ||||||
| Free Cash Flow | 1.89B | 2.49B | 484.00M | 3.57B | 10.99B | 1.97B |
| Operating Cash Flow | 6.04B | 8.10B | 6.50B | 9.77B | 16.72B | 6.62B |
| Investing Cash Flow | -4.17B | -5.13B | -5.56B | -5.82B | -5.56B | -4.74B |
| Financing Cash Flow | -4.46B | -840.00M | -3.22B | -4.37B | -9.36B | -716.00M |
Anglo American Technical Analysis
Positive
19.16
Price Trends
16.29
Positive
15.51
Positive
14.81
Positive
Market Momentum
0.87
Negative
68.45
Neutral
83.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGLOY, the sentiment is Positive. The current price of 19.16 is above the 20-day moving average (MA) of 18.23, above the 50-day MA of 16.29, and above the 200-day MA of 14.81, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGLOY.
Anglo American Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $113.86B | 10.30 | 18.18% | 5.69% | -0.44% | -4.20% | |
78 Outperform | $45.48B | 8.93 | 13.49% | 7.46% | -12.89% | -46.86% | |
77 Outperform | $142.85B | 15.79 | 19.51% | 4.05% | -7.86% | 14.17% | |
63 Neutral | $42.69B | ― | -9.21% | 0.68% | -25.45% | -169.04% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $686.03M | ― | -9.63% | 1.95% | 8.66% | 66.06% | |
48 Neutral | $816.68M | ― | -40.17% | 1.61% | 7.27% | 27.35% |
* Basic Materials Sector Average
NGLOY
Anglo American
19.16
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31.41%
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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.