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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 23.1% per year for the next 3 years
Snowflake Analysis
Outstanding 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 not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: FMG's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.6%
FMG
-2.5%
AU Metals and Mining
0.1%
AU Market
1 Year Return
120.7%
FMG
26.4%
AU Metals and Mining
-1.6%
AU Market
Return vs Industry: FMG exceeded the Australian Metals and Mining industry which returned 26.4% over the past year.
Return vs Market: FMG exceeded the Australian Market which returned -1.6% over the past year.
Shareholder returns
| FMG | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | -2.5% | 0.1% |
| 30 Day | 14.6% | 10.1% | 2.3% |
| 90 Day | 51.4% | 21.4% | 9.8% |
| 1 Year | 152.0%120.7% | 33.2%26.4% | 1.7%-1.6% |
| 3 Year | 586.1%391.8% | 70.2%46.6% | 25.7%10.1% |
| 5 Year | 2,459.7%1,540.4% | 294.1%221.6% | 70.7%37.2% |
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
5 days ago | Simply Wall St
These Trends Paint A Bright Future For Fortescue Metals Group (ASX:FMG)2 weeks ago | Simply Wall St
Have Insiders Been Buying Fortescue Metals Group Limited (ASX:FMG) Shares This Year?4 weeks ago | Simply Wall St
Does Fortescue Metals Group (ASX:FMG) Deserve A Spot On Your Watchlist?Valuation
Is Fortescue Metals Group undervalued compared to its fair value and its price relative to the market?
12.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FMG (A$25.18) is trading above our estimate of fair value (A$19.82)
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 (12.7x) compared to the AU Metals and Mining industry average (13.2x).
PE vs Market: FMG is good value based on its PE Ratio (12.7x) compared to the Australian market (22.4x).
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 (4.6x) compared to the AU Metals and Mining industry average (2.7x).
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?
-23.1%
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 (-23.1% per year).
Earnings vs Market: FMG's earnings are forecast to decline over the next 3 years (-23.1% 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 (-8.7% per year).
High Growth Revenue: FMG's revenue is forecast to decline over the next 3 years (-8.7% 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 (19.6%).
Next Steps
Past Performance
How has Fortescue Metals Group performed over the past 5 years?
40.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FMG has high quality earnings.
Growing Profit Margin: FMG's current net profit margins (36.9%) are higher than last year (32%).
Past Earnings Growth Analysis
Earnings Trend: FMG's earnings have grown significantly by 40.5% per year over the past 5 years.
Accelerating Growth: FMG's earnings growth over the past year (48.1%) exceeds its 5-year average (40.5% per year).
Earnings vs Industry: FMG earnings growth over the past year (48.1%) exceeded the Metals and Mining industry 38%.
Return on Equity
High ROE: FMG's Return on Equity (35.8%) 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 ($6.3B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: FMG's short term assets ($6.3B) do not cover its long term liabilities ($7.4B).
Debt to Equity History and Analysis
Debt Level: FMG's debt to equity ratio (32%) is considered satisfactory.
Reducing Debt: FMG's debt to equity ratio has reduced from 120.4% to 32% over the past 5 years.
Debt Coverage: FMG's debt is well covered by operating cash flow (151.5%).
Interest Coverage: FMG's interest payments on its debt are well covered by EBIT (40x coverage).
Balance Sheet
Next Steps
Dividend
What is Fortescue Metals Group current dividend yield, its reliability and sustainability?
7.16%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FMG's dividend (7.16%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).
High Dividend: FMG's dividend (7.16%) is in the top 25% of dividend payers in the Australian market (5.04%)
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 (79%), 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 (65.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Elizabeth Gaines (56 yo)
2.92yrs
Tenure
US$6,113,524
Compensation
Ms. Elizabeth Anne Gaines, CA, MappFin (Macq) serves as Managing Director at Fortescue Metals Group Limited since August 2018. Ms. Gaines has been Chief Executive Officer at Fortescue Metals Group Limited ...
CEO Compensation Analysis
Compensation vs Market: Elizabeth's total compensation ($USD3.29M) is about average for companies of similar size in the Australian market ($USD3.58M).
Compensation vs Earnings: Elizabeth's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 2.92yrs | US$6.11m | 0.032% $ 24.3m | |
| Chief Financial Officer | 2.92yrs | US$2.54m | 0% $ 0 | |
| Chief Operating Officer | 2.92yrs | US$3.82m | 0.014% $ 10.5m | |
| Deputy Chief Executive Officer | 3yrs | US$2.53m | 0.020% $ 15.1m | |
| Founder & Chairman of the Board | 17.5yrs | no data | 0.0011% $ 823.0k | |
| Director Corporate Development-Legal & Strategy | 16yrs | no data | no data | |
| Director of Sales & Marketing | 2.42yrs | no data | no data | |
| Director of Fortescue People | 7.25yrs | no data | no data | |
| General Manager of Exploration | no data | US$189.68k | no data | |
| Director of Sustainability & Corporate Affairs and Company Secretary | 3.92yrs | no data | no data | |
| Company Secretary | no data | no data | no data | |
| Group Manager of Procurement and Information Services | 5.92yrs | no data | no data |
3.0yrs
Average Tenure
54.5yo
Average Age
Experienced Management: FMG's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 2.92yrs | US$6.11m | 0.032% $ 24.3m | |
| Founder & Chairman of the Board | 17.5yrs | no data | 0.0011% $ 823.0k | |
| Deputy Chair & Lead Independent Director | 3.17yrs | US$948.72k | 0.0013% $ 998.3k | |
| Non-Executive Director | 4.17yrs | US$238.18k | 0.0016% $ 1.2m | |
| Non Executive Director | 2.92yrs | US$200.20k | no data | |
| Independent Non-Executive Director | 6yrs | US$208.15k | 0.0045% $ 3.4m | |
| Non-Executive Director | 4.17yrs | US$256.23k | 0.00044% $ 335.3k | |
| Non-Executive Director | 1.33yrs | US$166.83k | 0.00039% $ 297.2k | |
| Non-Executive Director | 3yrs | US$200.20k | no data |
4.2yrs
Average Tenure
58yo
Average Age
Experienced Board: FMG's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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$76.204b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FSUM.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 1989 |
| FVJ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 1989 |
| FMG | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Oct 1989 |
| FMG | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Oct 1989 |
| FSUG.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Feb 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....
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 07:02 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.