ASX:FMGMetals and Mining
Fortescue (ASX:FMG) Shares Reflect Margin Pressure And A Wide Valuation Gap
Fortescue’s share price closed at A$17.75 after a flat week and a weak three months, yet the real story in these results sits inside the margins. Iron ore volumes and revenue held up, but net profit margin has compressed to 16.9% over the last year from 21.7% a year earlier. That squeeze now clashes with a trailing P/E of 13.6x and a discounted cash flow value of A$11.70 per share. The market is treating Fortescue like a solid iron ore cash engine. The earnings print is a reminder that it is...