Fundamental analysis: AngloGold Ashanti Limited (AU)

Awarener score: 4.4

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Poor) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 2.5

Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
AngloGold Ashanti Limited business varies, ups and downs are rather normal. Risk is sufficient. It looks worse than most rivals.

Margins score: 4.8

AU profit margins -on goods and services sold- are usually very poor. They stand somewhat worse than rival companies.
Business profit on sales tends to be hardly sufficient. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still mediocre against similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain below average when measured against rivals.
Total net profit tends to be meagre when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 1.9

AngloGold Ashanti Limited profit -on goods and services sold- has been growing at a good pace. It's been rather normal in relation to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 1.0

AU had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 4.5

AngloGold Ashanti Limited usually gets hardly sufficient returns on the resources it controls. It proves below average when measured against peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
Profitability -in relation to owned resources- is usually lacking. It ranks substantially worse when measured against competitors.
In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 6.7

AU usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands below average when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is almost average when measured against industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly better than competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks slightly better than comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.9

AngloGold Ashanti Limited intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be substantially worse when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be in a weak position compared to similar firms.
Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains bottom tier against rival firms.
Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on less than a month credit. It still ranks substantially worse when measured against peers.
Normally has approximately three months of sales worth in inventory. It comes up as lacking compared to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers approximately three months after the purchase. It ranks more than average in relation to industry peers.
The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's rather normal in relation to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 5.8

AngloGold Ashanti Limited looks cheap in relation to profits and financial position. It happens to be similar to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands mediocre against similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still encouraging in relation to industry firms.
In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up a slight improvement compared to peer ventures.
The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks encouraging in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still in a weak position compared to peer companies.

Total score: 4.1

Company at a glance: AngloGold Ashanti Limited (AU)

Sector, industry: Basic Materials, Gold

Market Cap: 9.82 billions

Revenues TTM: 4.25 billions

AngloGold Ashanti Limited operates as a gold mining company in Africa, the Americas, and Australia. Its flagship property is a 100% owned Geita project located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. The company also explores for silver and sulphuric acid. AngloGold Ashanti Limited was incorporated in 1944 and is headquartered in Johannesburg, South Africa.