AngloGold Ashanti Limited (AU): What Does Valuation Ratios Tell Us?

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BEPC Stock
BEPC Stock

AngloGold Ashanti Limited (NYSE:AU) saw a downside of -2.53% to close Tuesday at $21.99 after subtracting -$0.57 on the day. The 5-day average trading volume is 2,569,520 shares of the company’s common stock. It has gained $22.73 in the past week and touched a new high 2 times within the past 5 days. An average of 2,475,470 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,767,720.

AU’s 1-month performance is 12.25% or $2.56 on its low of $19.15 reached on 12/30/22. The company’s shares have touched a 52-week low of $11.94 and high of $26.96, with the stock’s rally to the 52-week high happening on 01/13/23. YTD, AU has achieved 13.23% or $2.57 and has reached a new high 7 times. However, the current price is down -18.43% from the 52-week high price.

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Valuation Metrics

AU stock has a beta of 0.63. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.15 while the price-to-book (PB) in the most recent quarter is 2.18, with the price to cash flow ratio at 6.64.

AngloGold Ashanti Limited’s quick ratio for the period ended June 29 was 2.10, with the current ratio over the same period at 3.00. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.49, while the total debt to equity was 0.52.. In terms of profitability, the gross margin trailing 12 months is 27.90%. The trailing 12-month EBITDA margin is 32.89% while for the period ending June 29, AngloGold Ashanti Limited’s operating margin was 18.70%. The firm’s gross profit as reported stood at $1.17 billion against revenue of $4.03 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income grew 100.72% to $971.0 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected AU to announce $0.9 per share in earnings in its latest quarter, but it posted $0.39, representing a -56.70% surprise. AU stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 3.95 billion, with total debt at $2.22 billion.

Let’s look briefly at AngloGold Ashanti Limited (AU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 56.20% to suggest the stock is trending Neutral, with historical volatility in this time period at 36.19%.

The stock’s 5-day moving average is $22.30, reflecting a -0.45% or -$0.10 change from its current price. AU is currently trading +13.12% above its 20-day SMA, +60.39% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +34.58% and SMA200 by-4.39%.

Stochastic %K and %D was 69.99% and 74.25% and the average true range (ATR) pointed at 0.74. The RSI (14) points at 60.96%, while the 14-day stochastic is at 51.33% with the period’s ATR at 0.72. The stock’s 9-day MACD Oscillator is pointing at 0.01 and 0.34 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for AngloGold Ashanti Limited (NYSE: AU), Investec downgraded it to a Sell rating. They previously had a Buy rating on the stock. Analysts offering their rating for AU stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate AU as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 5 have offered a “buy” rating.

What is AU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $16.00 and a high of $26.22, with their median price target at $22.11. Looking at these predictions, the average price target given by analysts is for AngloGold Ashanti Limited (AU) stock is $21.57.

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