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FMG

Fortescue Metals Group ASX:FMG Stock Report

Last Price

AU$20.77

Market Cap

AU$63.9b

7D

5.0%

1Y

-2.1%

Updated

24 May, 2022

Data

Company Financials +
FMG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends5/6

FMG Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Fortescue Metals Group
Historical stock prices
Current Share PriceAU$20.77
52 Week HighAU$26.58
52 Week LowAU$13.90
Beta0.75
1 Month Change-2.12%
3 Month Change11.97%
1 Year Change-2.12%
3 Year Change150.54%
5 Year Change328.25%
Change since IPO138,366.67%

Recent News & Updates

Apr 13
With EPS Growth And More, Fortescue Metals Group (ASX:FMG) Is Interesting

With EPS Growth And More, Fortescue Metals Group (ASX:FMG) Is Interesting

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

FMGAU Metals and MiningAU Market
7D5.0%1.8%-1.2%
1Y-2.1%7.7%-0.009%

Return vs Industry: FMG underperformed the Australian Metals and Mining industry which returned 6.3% over the past year.

Return vs Market: FMG underperformed the Australian Market which returned 0.5% over the past year.

Price Volatility

Is FMG's price volatile compared to industry and market?
FMG volatility
FMG Average Weekly Movement6.2%
Metals and Mining Industry Average Movement10.9%
Market Average Movement9.3%
10% most volatile stocks in AU Market16.3%
10% least volatile stocks in AU Market4.2%

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.

About the Company

FoundedEmployeesCEOWebsite
198310,232Elizabeth 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$45.42b
Earnings (TTM)US$8.99b
Revenue (TTM)US$21.07b

5.1x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FMG income statement (TTM)
RevenueUS$21.07b
Cost of RevenueUS$7.45b
Gross ProfitUS$13.62b
Other ExpensesUS$4.64b
EarningsUS$8.99b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 29, 2022

Earnings per share (EPS)2.92
Gross Margin64.65%
Net Profit Margin42.65%
Debt/Equity Ratio24.3%

How did FMG perform over the long term?

See historical performance and comparison

Dividends

13.8%

Current Dividend Yield

74%

Payout Ratio
New valuation analysis is now available for all ASX stocks. This is in beta.

Future Growth

How is Fortescue Metals Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-25.0%

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 (-25% per year).

Earnings vs Market: FMG's earnings are forecast to decline over the next 3 years (-25% 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 (-11.7% per year).

High Growth Revenue: FMG's revenue is forecast to decline over the next 3 years (-11.7% 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 (17.8%).


Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


43.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FMG has high quality earnings.

Growing Profit Margin: FMG's current net profit margins (42.6%) are higher than last year (40.6%).


Past Earnings Growth Analysis

Earnings Trend: FMG's earnings have grown significantly by 43% per year over the past 5 years.

Accelerating Growth: FMG's earnings growth over the past year (41.2%) is below its 5-year average (43% per year).

Earnings vs Industry: FMG earnings growth over the past year (41.2%) underperformed the Metals and Mining industry 57.8%.


Return on Equity

High ROE: FMG's Return on Equity (57%) is considered outstanding.


Financial Health

How is Fortescue Metals Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FMG's short term assets ($4.6B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: FMG's short term assets ($4.6B) do not cover its long term liabilities ($7.3B).


Debt to Equity History and Analysis

Debt Level: FMG's net debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: FMG's debt to equity ratio has reduced from 49.1% to 24.3% over the past 5 years.

Debt Coverage: FMG's debt is well covered by operating cash flow (268.9%).

Interest Coverage: FMG's interest payments on its debt are well covered by EBIT (107.1x coverage).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


13.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FMG's dividend (13.82%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: FMG's dividend (13.82%) is in the top 25% of dividend payers in the Australian market (6.1%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (74.4%), FMG's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (86.9%), FMG's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

Elizabeth Gaines (57 yo)

4.25yrs

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 ($USD3.57M) is about average for companies of similar size in the Australian market ($USD3.97M).

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 (4 years average tenure).


Board Members

Experienced Board: FMG's board of directors are considered experienced (6.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: Fortescue Metals Group Limited
  • Ticker: FMG
  • Exchange: ASX
  • Founded: 1983
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: AU$63.903b
  • 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 Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2021/12/31
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.