ASX:FMG

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Fortescue Metals Group

Executive Summary

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Fortescue Metals Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FMG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

FMG

2.8%

AU Metals and Mining

1.8%

AU Market


1 Year Return

88.6%

FMG

6.8%

AU Metals and Mining

-8.3%

AU Market

Return vs Industry: FMG exceeded the Australian Metals and Mining industry which returned 6.4% over the past year.

Return vs Market: FMG exceeded the Australian Market which returned -8.5% over the past year.


Shareholder returns

FMGIndustryMarket
7 Day6.9%2.8%1.8%
30 Day34.2%21.7%12.3%
90 Day54.2%12.0%-7.1%
1 Year110.3%88.6%12.5%6.8%-4.5%-8.3%
3 Year327.5%210.1%70.7%47.3%14.8%-0.4%
5 Year820.7%516.3%101.9%61.3%31.2%2.8%

Price Volatility Vs. Market

How volatile is Fortescue Metals Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fortescue Metals Group undervalued compared to its fair value and its price relative to the market?

6.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FMG (A$14.73) is trading above our estimate of fair value (A$14.52)

Significantly Below Fair Value: FMG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FMG is good value based on its PE Ratio (6.2x) compared to the Metals and Mining industry average (10.1x).

PE vs Market: FMG is good value based on its PE Ratio (6.2x) compared to the Australian market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: FMG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FMG is overvalued based on its PB Ratio (2.5x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Fortescue Metals Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FMG's earnings are forecast to decline over the next 3 years (-29.5% per year).

Earnings vs Market: FMG's earnings are forecast to decline over the next 3 years (-29.5% per year).

High Growth Earnings: FMG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FMG's revenue is expected to decline over the next 3 years (-10.7% per year).

High Growth Revenue: FMG's revenue is forecast to decline over the next 3 years (-10.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMG's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Fortescue Metals Group performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMG has high quality earnings.

Growing Profit Margin: FMG's current net profit margins (38.7%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: FMG's earnings have grown significantly by 33.5% per year over the past 5 years.

Accelerating Growth: FMG's earnings growth over the past year (493.3%) exceeds its 5-year average (33.5% per year).

Earnings vs Industry: FMG earnings growth over the past year (493.3%) exceeded the Metals and Mining industry -7.9%.


Return on Equity

High ROE: FMG's Return on Equity (39.9%) is considered high.


Next Steps

Financial Health

How is Fortescue Metals Group's financial position?


Financial Position Analysis

Short Term Liabilities: FMG's short term assets ($4.7B) exceed its short term liabilities ($2.4B).

Long Term Liabilities: FMG's short term assets ($4.7B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: FMG's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: FMG's debt to equity ratio has reduced from 114.7% to 25.6% over the past 5 years.

Debt Coverage: FMG's debt is well covered by operating cash flow (204.1%).

Interest Coverage: FMG's interest payments on its debt are well covered by EBIT (34.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Fortescue Metals Group's current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMG's dividend (2.48%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.59%).

High Dividend: FMG's dividend (2.48%) is low compared to the top 25% of dividend payers in the Australian market (6.74%).


Stability and Growth of Payments

Stable Dividend: FMG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FMG's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), FMG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMG's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Elizabeth Gaines (55yo)

2.33yrs

Tenure

US$5,003,888

Compensation

Ms. Elizabeth Anne Gaines, CA, MappFin (Macq) serves as Managing Director at Fortescue Metals Group Limited since August 2018. Ms. Gaines has been Chief Executive Officer at Fortescue Metals Group Limited  ...


CEO Compensation Analysis

Compensation vs Market: Elizabeth's total compensation ($USD3.39M) is about average for companies of similar size in the Australian market ($USD3.72M).

Compensation vs Earnings: Elizabeth's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Andrew Forrest
Founder & Chairman of the Board16.92yrsno data0.0011% $491.6k
Elizabeth Gaines
CEO, MD & Executive Director2.33yrsUS$5.00m0.019% $8.8m
Ian Wells
Chief Financial Officer2.33yrsUS$2.33m0.0099% $4.5m
Greg Lilleyman
Chief Operating Officer2.33yrsUS$3.23m0.0066% $3.0m
Julie Shuttleworth
Deputy Chief Executive Officer2.42yrsUS$2.22m0.013% $5.9m
Peter Huston
Chief General Counsel & Director of Corporate Services15.42yrsno datano data
Danny Goeman
Director of Sales & Marketing2.33yrsno datano data
Linda O'Farrell
Group Manager of People6.67yrsno datano data
Alison Terry
Group Manager of Corporate Affairs & Joint Company Secretary3.33yrsno datano data
Cameron Wilson
Company Secretaryno datano datano data

2.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FMG's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Andrew Forrest
Founder & Chairman of the Board16.92yrsno data0.0011% $491.6k
Elizabeth Gaines
CEO, MD & Executive Director2.33yrsUS$5.00m0.019% $8.8m
Mark Barnaba
Co-Deputy Chair & Lead Independent Director2.58yrsUS$678.50k0.0013% $596.3k
Penelope Bingham-Hall
Non-Executive Director3.58yrsUS$203.67k0.0015% $673.7k
Sebastian Coe
Non Executive Director2.33yrsUS$177.10kno data
Jean Baderschneider
Independent Non-Executive Director5.42yrsUS$177.10k0.0045% $2.0m
Jennifer Morris
Non-Executive Director3.58yrsUS$215.05k0.00042% $191.2k
Ya Zhang
Non-Executive Director0.75yrno datano data
Zhiqiang Cao
Director2.42yrsUS$177.10kno data

3.6yrs

Average Tenure

57yo

Average Age

Experienced Board: FMG's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FMG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fortescue Metals Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortescue Metals Group Limited
  • Ticker: FMG
  • Exchange: ASX
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$45.520b
  • Shares outstanding: 3.08b
  • Website: https://www.fmgl.com.au

Number of Employees


Location

  • Fortescue Metals Group Limited
  • 87 Adelaide Terrace
  • Level 2
  • East Perth
  • Western Australia
  • 6004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSUM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1989
FVJDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1989
FMGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 1989
FMGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 1989
FSUG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2012

Biography

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It also explores for copper and gold deposits. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Ecuador and Argentina. Further, it provides towage services. The company was founded in 2003 and is headquartered in East Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 10:34
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.