U.S. markets close in 1 hour 37 minutes
  • S&P 500

    4,149.58
    -38.85 (-0.93%)
     
  • Dow 30

    34,245.83
    -496.99 (-1.43%)
     
  • Nasdaq

    13,383.56
    -18.30 (-0.14%)
     
  • Russell 2000

    2,212.07
    -0.63 (-0.03%)
     
  • Crude Oil

    65.22
    +0.30 (+0.46%)
     
  • Gold

    1,834.50
    -3.10 (-0.17%)
     
  • Silver

    27.55
    +0.07 (+0.24%)
     
  • EUR/USD

    1.2152
    +0.0018 (+0.15%)
     
  • 10-Yr Bond

    1.6240
    +0.0220 (+1.37%)
     
  • GBP/USD

    1.4152
    +0.0030 (+0.22%)
     
  • USD/JPY

    108.6500
    -0.1910 (-0.18%)
     
  • BTC-USD

    56,477.73
    -430.50 (-0.76%)
     
  • CMC Crypto 200

    1,510.31
    +1,267.63 (+522.35%)
     
  • FTSE 100

    6,947.99
    -175.69 (-2.47%)
     
  • Nikkei 225

    28,608.59
    -909.71 (-3.08%)
     

These Factors Make Anglo African Oil & Gas plc (LON:AAOG) An Interesting Investment

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
  • Oops!
    Something went wrong.
    Please try again later.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

I've been keeping an eye on Anglo African Oil & Gas plc (LON:AAOG) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AAOG has a lot to offer. Basically, it is a company with impressive financial health as well as a buoyant growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Anglo African Oil & Gas here.

Flawless balance sheet with exceptional growth potential

One reason why investors may be attracted to AAOG is its explosive triple-digit earnings growth potential in the near future. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. AAOG's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that AAOG manages its cash and cost levels well, which is an important determinant of the company’s health. AAOG currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. AAOG has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

AIM:AAOG Past and Future Earnings, June 3rd 2019
AIM:AAOG Past and Future Earnings, June 3rd 2019

Next Steps:

For Anglo African Oil & Gas, I've compiled three key aspects you should further examine:

  1. Historical Performance: What has AAOG's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is AAOG 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 AAOG is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AAOG? 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.