Does Alamos Gold Inc. (AGI) Have A Cheap Price Or Is It Risky?

The stock of Alamos Gold Inc. (NYSE:AGI) increased by $0.16 on Tuesday to finish at $7.75, up 2.11 percent. The last five days have seen an average of 3,255,560 shares of common stock traded. 15 times new highs were reached in the current year, with a gain of $0.06. The average number of shares traded over the last 20 days was 3,675,515, while the average volume over the last 50 days totaled 3,460,754.

AGI stock appreciated 19.60% since last month. On 09/26/22, the company’s shares reached a one-month low of $6.35. The stock touched a high of $9.22 on 04/18/22, after rallying from a low of $6.35 in 52 weeks. The price of AGI stock has risen by 0.78% or $0.06 this year, reaching a new high 15 times. Still, the stock price is down -15.94% from the 52-week high.

Valuation Metrics

Alamos Gold Inc. (AGI) has a trailing price-to-earnings (P/E) ratio of 42.35. Beta for the stock is 1.07. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.78, the price-to-book (PB) ratio of 0.82, and the price-to-cash flow ratio of 12.13.

Company paid $0.0250 per share in dividends, remained unchanged from $0.0250 last year. A $0.0050 dividend increase was reported on Sunday March 14 2021.

Financial Health

For the three months ended June 29, Alamos Gold Inc.’s quick ratio was 1.30, while its current ratio was 2.70, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 52.20% percent. Alamos Gold Inc.’s operating margin stood at 16.40% for the same period. Based on annual data, it had gross profit of $472.1 million and revenue of $823.6 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AGI’s return on assets (ROA) during the last 12 months has been 1.50%. There was a -2.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 1.90%.

Earnings Surprise

According to Alamos Gold Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $241.1 million, while revenues rose by 100.0% to $185.1 million. It was predicted that Alamos Gold Inc.’s quarterly earnings would be $0.07, but it ended up being $0.06, beating the consensus by 16.70%. EBITDA was $63.9 million for the quarter. At the end of Alamos Gold Inc.’s most recent quarter ended June 29, its liabilities totaled 885.7 million, while its total debt was $2.9 million.

Technical Picture

Here’s a quick look at Alamos Gold Inc.’s (AGI) price momentum from a technical perspective. As of 25 October, the RSI 9-day stood at 60.26%, suggesting the stock is Neutral, with a 38.75% historical volatility rate.

The stochastic %K and %D were 55.64% and 45.09% respectively, while the average true range (ATR) was 0.29. Based on the 14-day stochastic reading of 64.42%, the RSI (14) reading is 56.61%. On the 9-day MACD Oscillator, the stock is at 0.19, and the 14-day reading is at 0.11.

Analyst Ratings

In its most recent analyst report, National Bank Financial raised its rating on Alamos Gold Inc. (NYSE: AGI) to an Outperform. Prior to this, analysts firm rated the stock as a Sector perform.

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