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FMG

Fortescue Metals GroupASX:FMG Stock Report

Market Cap

AU$43.1b

7D

-2.7%

1Y

-15.6%

Updated

28 Oct, 2021

Data

Company Financials +
FMG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends5/6

FMG Overview

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

Fortescue Metals Group Competitors

Grange Resources

ASX:GRR

AU$671.3m

Mount Gibson Iron

ASX:MGX

AU$532.6m

BCI Minerals

ASX:BCI

AU$297.0m

Exxon Mobil

NYSE:XOM

US$271.5b

Price History & Performance

Summary of all time highs, changes and price drops for Fortescue Metals Group
Historical stock prices
Current Share PriceAU$14.02
52 Week HighAU$13.91
52 Week LowAU$26.58
Beta0.79
1 Month Change-5.72%
3 Month Change-43.72%
1 Year Change-15.64%
3 Year Change241.12%
5 Year Change167.05%
Change since IPO93,366.67%

Recent News & Updates

Jul 30
Here's Why We Think Fortescue Metals Group (ASX:FMG) Is Well Worth Watching

Here's Why We Think Fortescue Metals Group (ASX:FMG) Is Well Worth Watching

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Jul 04
Fortescue Metals Group Limited (ASX:FMG) Shares Could Be 31% Below Their Intrinsic Value Estimate

Fortescue Metals Group Limited (ASX:FMG) Shares Could Be 31% Below Their Intrinsic Value Estimate

Does the July share price for Fortescue Metals Group Limited ( ASX:FMG ) reflect what it's really worth? Today, we will...

Shareholder Returns

FMGAU Metals and MiningAU Market
7D-2.7%-1.2%0.4%
1Y-15.6%16.2%26.1%

Return vs Industry: FMG underperformed the Australian Metals and Mining industry which returned 16.2% over the past year.

Return vs Market: FMG underperformed the Australian Market which returned 26.1% over the past year.

Price Volatility

Is FMG's price volatile compared to industry and market?
FMG volatility
FMG Beta0.79
Industry Beta0.97
Market Beta1

Stable Share Price: FMG is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FMG's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198310,164Elizabeth Gaineshttps://www.fmgl.com.au

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, Kings Valley, and Queens Valley mines located in the Hamersley ranges of Pilbara, Western Australia.

Fortescue Metals Group Fundamentals Summary

How do Fortescue Metals Group's earnings and revenue compare to its market cap?
FMG fundamental statistics
Market CapUS$32.37b
Earnings (TTM)US$10.30b
Revenue (TTM)US$22.28b

3.1x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FMG income statement (TTM)
RevenueUS$22.28b
Cost of RevenueUS$6.79b
Gross ProfitUS$15.49b
ExpensesUS$5.20b
EarningsUS$10.30b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)3.35
Gross Margin69.51%
Net Profit Margin46.20%
Debt/Equity Ratio19.4%

How did FMG perform over the long term?

See historical performance and comparison

Dividends

28.8%

Current Dividend Yield

80%

Payout Ratio

Valuation

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

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FMG (A$14.02) is trading below our estimate of fair value (A$21.04)

Significantly Below Fair Value: FMG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FMG is good value based on its PE Ratio (3.1x) compared to the Australian Metals and Mining industry average (15x).

PE vs Market: FMG is good value based on its PE Ratio (3.1x) compared to the Australian market (19.7x).


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 good value based on its PB Ratio (1.8x) compared to the AU Metals and Mining industry average (2.6x).


Future Growth

How is Fortescue Metals Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-40.3%

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 (-40.3% per year).

Earnings vs Market: FMG's earnings are forecast to decline over the next 3 years (-40.3% 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 (-18.7% per year).

High Growth Revenue: FMG's revenue is forecast to decline over the next 3 years (-18.7% 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 (20%).


Past Performance

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

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMG has high quality earnings.

Growing Profit Margin: FMG's current net profit margins (46.2%) are higher than last year (36.9%).


Past Earnings Growth Analysis

Earnings Trend: FMG's earnings have grown significantly by 42.9% per year over the past 5 years.

Accelerating Growth: FMG's earnings growth over the past year (117.4%) exceeds its 5-year average (42.9% per year).

Earnings vs Industry: FMG earnings growth over the past year (117.4%) exceeded the Metals and Mining industry 35.3%.


Return on Equity

High ROE: FMG's Return on Equity (58%) is considered outstanding.


Financial Health

How is Fortescue Metals Group's financial position?


Financial Position Analysis

Short Term Liabilities: FMG's short term assets ($9.0B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: FMG's short term assets ($9.0B) exceed its long term liabilities ($6.8B).


Debt to Equity History and Analysis

Debt Level: FMG's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: FMG's debt to equity ratio has reduced from 74.2% to 19.4% over the past 5 years.

Debt Coverage: FMG's debt is well covered by operating cash flow (365.9%).

Interest Coverage: FMG's interest payments on its debt are well covered by EBIT (118.8x coverage).


Balance Sheet


Dividend

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

28.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMG's dividend (28.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: FMG's dividend (28.81%) is in the top 25% of dividend payers in the Australian market (5.33%)


Stability and Growth of Payments

Stable Dividend: FMG's dividend payments have been volatile in the past 10 years.

Growing Dividend: FMG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.2%), FMG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FMG's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Elizabeth Gaines (57 yo)

3.67yrs

Tenure

US$3,569,990

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 ($USD3.57M) is about average for companies of similar size in the Australian market ($USD3.65M).

Compensation vs Earnings: Elizabeth's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FMG's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: FMG's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FMG insiders have sold more shares than they have bought 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 employee growth, exchange listings and data sources


Key Information

  • Name: Fortescue Metals Group Limited
  • Ticker: FMG
  • Exchange: ASX
  • Founded: 1983
  • Industry: Steel
  • Sector: Materials
  • Market Cap: AU$43.082b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/28 07:02
End of Day Share Price2021/10/28 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.