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Like a puppy chasing his tail, some new investors often look for "the next big thing", even if it means buying "historic stocks" without income, not to mention profits. Unfortunately, high-risk investments are often unlikely to pay off and many investors pay the price to learn their lesson.
If, on the contrary, you like companies that have income and even profits, then you may be interested in Anglo American (LON: AAL). While this does not make stocks worth buying at all costs, you can not deny that successful capitalism requires a profit in the long run. In comparison, loss-making companies act like a sponge for capital – but unlike such a sponge, they do not always produce something when they are in a hurry.
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Discover our latest badyzes for Anglo American
Improved Anglo American Profits
Over the last three years, Anglo American earnings per share have taken off like a rocket; fast, and from a low base. So the current growth rate does not tell us much. Therefore, I will focus on growth over the last year. Anglo American saw its twelve-month earnings per share rise from $ 2.48 to $ 2.80 in the past year. It is a gain of 13%; respectable growth in the broader scheme of things.
I like to look at earnings before interest and tax margins (EBIT), as well as revenue growth, to give another insight into the quality of the company's growth. Anglo American has maintained stable EBIT margins over the past year, while increasing its revenues by 5.2% to 28 billion USD. It is progress.
You can see the trend of the company's revenue and earnings growth in the chart below. To see the actual numbers, click on the graph.
Of course, the talent is to find actions that have their best days in the future, not in the past. You can of course base your opinion on past performance, but you can also check out this interactive EPS chart chart of professional badysts for Anglo American.
Are Anglo American insiders aligned with all shareholders?
Since Anglo American has a market capitalization of $ 25 billion, we did not expect insiders to hold a high percentage of stocks. But we are rebadured by the fact that they have invested in the company. With a total of $ 42 million worth of shares, insiders rely heavily on the success of the company. This is certainly enough to make me think that management will be very focused on long-term growth.
Does Anglo American deserve a place on your watchlist?
As I have already mentioned, Anglo American is a growing business, and that's what I like to see. If this is not enough, there are also quite remarkable levels of ownership by insiders. This combination I like, for one. So yes, I think the stock deserves to be watched. Now, you can try to decide on Anglo American by focusing only on these factors, or you could also Examine the price / earnings ratio compared to other companies in your industry.
Although I like Anglo American, I would like it more if insiders bought shares. If you like insider shopping, too, then this free list of growing businesses purchased by insiders, could be exactly what you are looking for.
Please note that the insider transactions described in this article refer to transactions to be reported in the relevant jurisdiction.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
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