Anglo American Profit Margin vs. Current Valuation
| AGL Stock | 56,135 1,041 1.82% |
For Anglo American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Anglo American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Anglo American PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Anglo American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Anglo American PLC over time as well as its relative position and ranking within its peers.
Anglo |
Anglo American PLC Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Anglo American's current stock value. Our valuation model uses many indicators to compare Anglo American value to that of its competitors to determine the firm's financial worth. Anglo American PLC is rated third in profit margin category among its peers. It is the top company in current valuation category among its peers reporting about 5,170,260,175,929 of Current Valuation per Profit Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Anglo American's earnings, one of the primary drivers of an investment's value.Anglo Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Anglo American |
| = | 0.19 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Anglo American |
| = | 962.7 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Anglo Current Valuation vs Competition
Anglo American PLC is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Other Industrial Metals & Mining industry is presently estimated at about 1.12 Trillion. Anglo American totals roughly 962.7 Billion in current valuation claiming about 86% of all equities under Other Industrial Metals & Mining industry.
Anglo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Anglo American. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Anglo American position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Anglo American's important profitability drivers and their relationship over time.
Use Anglo American in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Anglo American position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anglo American will appreciate offsetting losses from the drop in the long position's value.Anglo American Pair Trading
Anglo American PLC Pair Trading Analysis
The ability to find closely correlated positions to Anglo American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Anglo American when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Anglo American - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Anglo American PLC to buy it.
The correlation of Anglo American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Anglo American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Anglo American PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Anglo American can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Anglo American position
In addition to having Anglo American in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Aggressive Defence Thematic Idea Now
Aggressive Defence
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
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Other Information on Investing in Anglo Stock
To fully project Anglo American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Anglo American PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Anglo American's income statement, its balance sheet, and the statement of cash flows.