AGIAlamos Gold Inc.
Is the business good?
The checks split: mostly cash-backed earnings (0.9×) and margins steady.
Operating profit is mostly backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AGI?
Alamos Gold Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 61%
Operating margin · Gold median 38% · fiscal year to FY2025
- Cash conversion
- 0.89×
Cash conversion · 2.08× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- +2.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 30% |
| FY2021 | 1.8% |
| FY2022 | 14% |
| FY2023 | 31% |
| FY2024 | 42% |
| FY2025 | 61% |
Details›
- Gross marginfiscal year to FY2025
- 55%
- Operating marginfiscal year to FY2025
- 61%
- Net marginfiscal year to FY2025
- 49%
- Free cash flow margin
- 16%
- Revenue, trailing twelve months
- $1.81B
- Free cash flow, trailing twelve months
- $288M
- Net income, trailing twelve months
- $886M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.