Antofagasta Plc (ANTO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sylvania Platinum Ltd.

Antofagasta Plc

Rio Tinto Plc

Central Asia Metals Plc

Anglo American Plc

RHI Magnesita NV

Jubilee Metals Group Plc

Kenmare Resources Plc

Ecora Resources Plc

Petra Diamonds Ltd.

Atalaya Mining Plc

Why is Antofagasta Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 24.85

Poor long term growth as Operating profit has grown by an annual rate 16.10% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At GBP 137.2 MM has Grown at 31.26%
DEBT-EQUITY RATIO (HY) Highest at 23.52 %

With ROE of 15.12%, it has a very expensive valuation with a 3.75 Price to Book Value

Over the past year, while the stock has generated a return of 70.15%, its profits have risen by 37.2% ; the PEG ratio of the company is 0.7

Consistent Returns over the last 3 years

Along with generating 70.15% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Antofagasta Plc should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Antofagasta Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Antofagasta Plc

70.15%

4.56

37.11%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.65%

EBIT Growth (5y)

16.10%

EBIT to Interest (avg)

24.85

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.52

Tax Ratio

37.89%

Dividend Payout Ratio

36.09%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

24.52%

ROE (avg)

17.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.75

EV to EBIT

15.08

EV to EBITDA

8.65

EV to Capital Employed

3.24

EV to Sales

4.90

PEG Ratio

0.67

Dividend Yield

ROCE (Latest)

21.51%

ROE (Latest)

15.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 4,073.9 MM

RAW MATERIAL COST(Y)

Fallen by -11.44% (YoY

NET SALES(Q)

Highest at GBP 2,930.07 MM

OPERATING PROFIT(Q)

Highest at GBP 1,715.9 MM

OPERATING PROFIT MARGIN(Q)

Highest at 58.56 %

PRE-TAX PROFIT(Q)

Highest at GBP 846.92 MM

NET PROFIT(Q)

Highest at GBP 386.44 MM

-4What is not working for the Company

INTEREST(HY)

At GBP 137.2 MM has Grown at 31.26%

DEBT-EQUITY RATIO (HY)

Highest at 23.52 %

Here's what is working for Antofagasta Plc

Net Profit

At GBP 386.44 MM has Grown at 137.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Cash Flow

Highest at GBP 4,073.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales

Highest at GBP 2,930.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 1,715.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 58.56 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 846.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

At GBP 846.92 MM has Grown at 78.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 386.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Raw Material Cost

Fallen by -11.44% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Antofagasta Plc

Interest

At GBP 137.2 MM has Grown at 31.26%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 23.52 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio