ASX:FMG

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Fortescue Metals Group

Market Cap

AU$70.0b

Last Updated

2021/06/25 08:15 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FMG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

FMG

-0.02%

AU Metals and Mining

-1.5%

AU Market


1 Year Return

61.6%

FMG

35.4%

AU Metals and Mining

28.1%

AU Market

Return vs Industry: FMG exceeded the Australian Metals and Mining industry which returned 35.4% over the past year.

Return vs Market: FMG exceeded the Australian Market which returned 28.1% over the past year.


Shareholder returns

FMGIndustryMarket
7 Day2.2%-0.02%-1.5%
30 Day8.0%-0.2%2.4%
90 Day13.7%6.7%6.3%
1 Year81.8%61.6%42.5%35.4%32.2%28.1%
3 Year658.8%422.1%65.6%43.6%31.6%16.3%
5 Year934.7%531.4%148.7%108.3%66.2%34.7%

Long-Term 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?

8.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FMG (A$22.74) is trading above our estimate of fair value (A$20.38)

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 (8.3x) compared to the Australian Metals and Mining industry average (12.3x).

PE vs Market: FMG is good value based on its PE Ratio (8.3x) compared to the Australian market (20.4x).


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 (3.5x) compared to the AU Metals and Mining industry average (2.5x).


Future Growth

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

-39.1%

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 (-39.1% per year).

Earnings vs Market: FMG's earnings are forecast to decline over the next 3 years (-39.1% 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 (-19.3% per year).

High Growth Revenue: FMG's revenue is forecast to decline over the next 3 years (-19.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FMG's Return on Equity is forecast to be high in 3 years time (22.8%)


Past Performance

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

39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FMG has high quality earnings.

Growing Profit Margin: FMG's current net profit margins (40.6%) are higher than last year (38.7%).


Past Earnings Growth Analysis

Earnings Trend: FMG's earnings have grown significantly by 39.9% per year over the past 5 years.

Accelerating Growth: FMG's earnings growth over the past year (27.5%) is below its 5-year average (39.9% per year).

Earnings vs Industry: FMG earnings growth over the past year (27.5%) exceeded the Metals and Mining industry 26.1%.


Return on Equity

High ROE: FMG's Return on Equity (42.4%) is considered outstanding.


Financial Health

How is Fortescue Metals Group's financial position?


Financial Position Analysis

Short Term Liabilities: FMG's short term assets ($6.0B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: FMG's short term assets ($6.0B) do not cover its long term liabilities ($6.6B).


Debt to Equity History and Analysis

Debt Level: FMG's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: FMG's debt to equity ratio has reduced from 101.6% to 21.3% over the past 5 years.

Debt Coverage: FMG's debt is well covered by operating cash flow (240.7%).

Interest Coverage: FMG's interest payments on its debt are well covered by EBIT (59.9x coverage).


Balance Sheet


Dividend

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

12.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FMG's dividend (12.76%) is higher than the bottom 25% of dividend payers in the Australian market (1.96%).

High Dividend: FMG's dividend (12.76%) is in the top 25% of dividend payers in the Australian market (4.96%)


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 (87.7%), 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 (72.8% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Elizabeth Gaines (56 yo)

3.33yrs

Tenure

US$4,220,881

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 ($USD4.22M) is about average for companies of similar size in the Australian market ($USD3.39M).

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


Leadership Team

Experienced Management: FMG's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: FMG's board of directors are considered experienced (4.6 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$69.978b
  • 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


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....


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 08:15
End of Day Share Price2021/06/25 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.