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Anglo Asian Mining PLC (LON:AAZ) Has Attractive Fundamentals

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Anglo Asian Mining PLC (LON:AAZ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AAZ, it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Anglo Asian Mining here.

Flawless balance sheet with solid track record

AAZ delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did AAZ outperformed its past performance, its growth also exceeded the Metals and Mining industry expansion, which generated a 13% earnings growth. This paints a buoyant picture for the company. AAZ is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that AAZ has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. AAZ seems to have put its debt to good use, generating operating cash levels of 5.58x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

AIM:AAZ Income Statement, July 4th 2019
AIM:AAZ Income Statement, July 4th 2019

Next Steps:

For Anglo Asian Mining, there are three important factors you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for AAZ’s future growth? Take a look at our free research report of analyst consensus for AAZ’s outlook.

  2. Valuation: What is AAZ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AAZ is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AAZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.