Amerigo Resources (TSX:ARG) Margin Compression Reinforces Concerns Over Slower Growth, Discounted Valuation
Amerigo Resources (TSX:ARG) reported net profit margins of 10%, down from 11.2% a year ago, revealing a decrease in profitability over the period. While the company has remained profitable for five years running, its earnings have slid by an average of 11.8% annually. Forecasts call for revenue to grow at just 2.3% per year, lagging behind the Canadian market’s 5% pace. Investors are likely to weigh this slower growth and recent margin compression against the stock’s appealing valuation. See...
Amerigo Resources (TSX:ARG) reported net profit margins of 10%, down from 11.2% a year ago, revealing a decrease in profitability over the period. While the company has remained profitable for five years running, its earnings have slid by an average of 11.8% annually. Forecasts call for revenue to grow at just 2.3% per year, lagging behind the Canadian market’s 5% pace. Investors are likely to weigh this slower growth and recent margin compression against the stock’s appealing valuation. See...