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Fortescue Metals Group

ASX:FMG
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FMG
ASX
A$28B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The last earnings update was 91 days ago. More info.


Add to Portfolio Compare Print
  • Fortescue Metals Group has significant price volatility in the past 3 months.
FMG Share Price and Events
7 Day Returns
11.2%
ASX:FMG
4.6%
AU Metals and Mining
2.9%
AU Market
1 Year Returns
94.4%
ASX:FMG
6.6%
AU Metals and Mining
4.3%
AU Market
FMG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fortescue Metals Group (FMG) 11.2% 20.3% 34.5% 94.4% 215.8% 94.8%
AU Metals and Mining 4.6% 2% 3.3% 6.6% 83.5% 12.4%
AU Market 2.9% 3.2% 5.5% 4.3% 21% 9.7%
1 Year Return vs Industry and Market
  • FMG outperformed the Metals and Mining industry which returned 6.6% over the past year.
  • FMG outperformed the Market in Australia which returned 4.3% over the past year.
Price Volatility
FMG
Industry
5yr Volatility vs Market

Value

 Is Fortescue Metals Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fortescue Metals Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fortescue Metals Group.

ASX:FMG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:FMG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.035 (1 + (1- 30%) (20.38%))
1.123
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.123 * 5.96%)
9%

Discounted Cash Flow Calculation for ASX:FMG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fortescue Metals Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:FMG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9%)
2019 2,217.24 Analyst x7 2,034.10
2020 2,251.53 Analyst x6 1,894.95
2021 1,938.45 Analyst x6 1,496.69
2022 1,333.00 Analyst x2 944.21
2023 1,199.30 Est @ -10.03% 779.33
2024 1,123.41 Est @ -6.33% 669.72
2025 1,081.44 Est @ -3.74% 591.45
2026 1,060.67 Est @ -1.92% 532.17
2027 1,053.76 Est @ -0.65% 485.04
2028 1,056.26 Est @ 0.24% 446.03
Present value of next 10 years cash flows $9,873.70
ASX:FMG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,056.26 × (1 + 2.31%) ÷ (9% – 2.31%)
$16,149.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,149.94 ÷ (1 + 9%)10
$6,819.69
ASX:FMG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,873.70 + $6,819.69
$16,693.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,693.39 / 3,077.45
$5.42
ASX:FMG Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:FMG)
1.447
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $5.42 x 1.447
A$7.85
Value per share (AUD) From above. A$7.85
Current discount Discount to share price of A$9.00
= -1 x (A$9.00 - A$7.85) / A$7.85
-14.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Fortescue Metals Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fortescue Metals Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fortescue Metals Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:FMG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.27
ASX:FMG Share Price ** ASX (2019-05-21) in AUD A$9
ASX:FMG Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.691 $6.22
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.34x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 16.09x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fortescue Metals Group.

ASX:FMG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:FMG Share Price ÷ EPS (both in USD)

= 6.22 ÷ 0.27

22.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortescue Metals Group is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • Fortescue Metals Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Fortescue Metals Group's expected growth come at a high price?
Raw Data
ASX:FMG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
-11.5%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.81x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

ASX:FMG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.95x ÷ -11.5%

-1.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortescue Metals Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fortescue Metals Group's assets?
Raw Data
ASX:FMG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.24
ASX:FMG Share Price * ASX (2019-05-21) in AUD A$9
ASX:FMG Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.691 $6.22
Australia Metals and Mining Industry PB Ratio Median Figure of 582 Publicly-Listed Metals and Mining Companies 1.44x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.65x
ASX:FMG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:FMG Share Price ÷ Book Value per Share (both in USD)

= 6.22 ÷ 3.24

1.92x

* Primary Listing of Fortescue Metals Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortescue Metals Group is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Fortescue Metals Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Fortescue Metals Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Fortescue Metals Group expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fortescue Metals Group expected to grow at an attractive rate?
  • Fortescue Metals Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Fortescue Metals Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Fortescue Metals Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:FMG Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:FMG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts -11.5%
ASX:FMG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts -2.4%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 2.2%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:FMG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:FMG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 7,767 2,495 1,404 2
2021-06-30 8,359 3,149 1,846 14
2020-06-30 9,262 3,629 2,607 16
2019-06-30 8,836 3,402 2,442 16
ASX:FMG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,748 2,138 842
2018-09-30 6,818 1,870 861
2018-06-30 6,887 1,601 879
2018-03-31 7,261 2,206 1,216
2017-12-31 7,634 2,810 1,552
2017-09-30 8,041 3,533 1,823
2017-06-30 8,447 4,256 2,093
2017-03-31 8,339 3,731 1,990
2016-12-31 8,231 3,206 1,887
2016-09-30 7,657 2,826 1,436
2016-06-30 7,083 2,446 984
2016-03-31 7,072 2,338 645

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fortescue Metals Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Fortescue Metals Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:FMG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Fortescue Metals Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:FMG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.46 0.46 0.46 1.00
2021-06-30 0.63 0.91 0.29 12.00
2020-06-30 0.85 1.47 0.41 14.00
2019-06-30 0.78 0.96 0.66 14.00
ASX:FMG Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.27
2018-09-30 0.28
2018-06-30 0.28
2018-03-31 0.39
2017-12-31 0.50
2017-09-30 0.59
2017-06-30 0.67
2017-03-31 0.64
2016-12-31 0.61
2016-09-30 0.46
2016-06-30 0.32
2016-03-31 0.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Fortescue Metals Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fortescue Metals Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fortescue Metals Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fortescue Metals Group's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fortescue Metals Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Fortescue Metals Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fortescue Metals Group's 1-year earnings growth is negative, it can't be compared to the AU Metals and Mining industry average.
Earnings and Revenue History
Fortescue Metals Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fortescue Metals Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:FMG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,748.00 842.00 94.00
2018-09-30 6,817.50 860.50 98.00
2018-06-30 6,887.00 879.00 102.00
2018-03-31 7,260.50 1,215.50 95.50
2017-12-31 7,634.00 1,552.00 89.00
2017-09-30 8,040.50 1,822.50 98.00
2017-06-30 8,447.00 2,093.00 107.00
2017-03-31 8,339.00 1,990.00 66.00
2016-12-31 8,231.00 1,887.00 25.00
2016-09-30 7,657.00 1,435.50 61.00
2016-06-30 7,083.00 984.00 97.00
2016-03-31 7,071.50 644.50 159.50
2015-12-31 7,060.00 305.00 222.00
2015-09-30 7,817.00 311.00 184.00
2015-06-30 8,574.00 317.00 146.00
2015-03-31 9,656.00 832.00 143.00
2014-12-31 10,738.00 1,347.00 140.00
2014-09-30 11,245.50 2,038.50 145.00
2014-06-30 11,753.00 2,730.00 150.00
2014-03-31 11,211.00 2,856.00 164.50
2013-12-31 10,669.00 2,982.00 179.00
2013-09-30 9,394.50 2,364.00 167.00
2013-06-30 8,120.00 1,746.00 155.00
2013-03-31 7,401.50 1,491.00 134.00
2012-12-31 6,683.00 1,236.00 113.00
2012-09-30 6,699.50 1,397.50 108.50
2012-06-30 6,716.00 1,559.00 104.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fortescue Metals Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fortescue Metals Group used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Fortescue Metals Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fortescue Metals Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fortescue Metals Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fortescue Metals Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fortescue Metals Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fortescue Metals Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fortescue Metals Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Fortescue Metals Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fortescue Metals Group Company Filings, last reported 4 months ago.

ASX:FMG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,984.00 3,998.00 962.00
2018-09-30 9,984.00 3,998.00 962.00
2018-06-30 9,732.00 3,975.00 863.00
2018-03-31 9,732.00 3,975.00 863.00
2017-12-31 9,799.00 4,181.00 892.00
2017-09-30 9,799.00 4,181.00 892.00
2017-06-30 9,734.00 4,471.00 1,838.00
2017-03-31 9,734.00 4,471.00 1,838.00
2016-12-31 9,333.00 5,156.00 1,160.00
2016-09-30 9,333.00 5,156.00 1,160.00
2016-06-30 8,406.00 6,771.00 1,583.00
2016-03-31 8,406.00 6,771.00 1,583.00
2015-12-31 7,818.00 8,448.00 2,318.00
2015-09-30 7,818.00 8,448.00 2,318.00
2015-06-30 7,537.00 9,569.00 2,381.00
2015-03-31 7,537.00 9,569.00 2,381.00
2014-12-31 7,620.00 9,051.00 1,574.00
2014-09-30 7,620.00 9,051.00 1,574.00
2014-06-30 7,583.00 9,557.00 2,398.00
2014-03-31 7,583.00 9,557.00 2,398.00
2013-12-31 6,833.00 11,553.00 2,924.00
2013-09-30 6,833.00 11,553.00 2,924.00
2013-06-30 5,289.00 12,691.00 2,158.00
2013-03-31 5,289.00 12,691.00 2,158.00
2012-12-31 4,102.00 12,768.00 2,041.00
2012-09-30 4,102.00 12,768.00 2,041.00
2012-06-30 3,762.00 8,501.00 2,353.00
  • Fortescue Metals Group's level of debt (40%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (168.5% vs 40% today).
  • Debt is well covered by operating cash flow (53.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess Fortescue Metals Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fortescue Metals Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.73%
Current annual income from Fortescue Metals Group dividends. Estimated to be 8.33% next year.
If you bought A$2,000 of Fortescue Metals Group shares you are expected to receive A$175 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Fortescue Metals Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.66%).
  • Fortescue Metals Group's dividend is above the markets top 25% of dividend payers in Australia (5.74%).
Upcoming dividend payment

Purchase Fortescue Metals Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:FMG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 4.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:FMG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.26 2.00
2021-06-30 0.34 15.00
2020-06-30 0.55 18.00
2019-06-30 0.67 18.00
ASX:FMG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 0.543 9.254
2019-02-19 0.215 4.411
2018-08-20 0.161 5.479
2018-02-20 0.260 7.843
2017-08-21 0.375 9.841
2017-02-21 0.294 7.348
2016-08-22 0.108 2.655
2015-08-24 0.034 2.107
2015-02-16 0.044 2.915
2014-09-15 0.154 6.998
2014-02-21 0.179 4.268
2013-08-22 0.087 1.915
2013-02-20 0.000 0.000
2012-10-10 0.082 1.858
2012-02-15 0.077 1.729
2011-10-07 0.077 1.670
2011-08-19 0.075 1.482
2011-02-18 0.059 0.954

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortescue Metals Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Fortescue Metals Group only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Fortescue Metals Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Fortescue Metals Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fortescue Metals Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fortescue Metals Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Fortescue Metals Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Elizabeth Gaines
COMPENSATION $2,520,739
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

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 since February 2018. Ms. Gaines serves as an Executive Director of Fortescue Metals Group Limited since February 6, 2017 and served as its Chief Financial Officer from February 2017 to February 2018. Ms. Gaines served as the Chief Executive Officer at Helloworld Limited from March 28, 2014 to December 19, 2015 and as its Chief Financial Officer since October 1, 2010 and Chief Operating Officer since October 2012. Ms. Gaines served as an Executive Director of Helloworld Limited from June 30, 2011 to December 19, 2015. She served as an Executive Director of Stella Group Pty Ltd. She served as the Chief Financial Officer of Jetset Travelworld Ltd. since September 2010. She served as an Executive Director of Jetset Travelworld Ltd. since June 30, 2010. She served as an Executive Director of Entertainment Rights Plc from August 2002 to August 29, 2008. She has extensive operational experience as the Chief Executive Officer and Group Executive running large businesses and a proven track record in international business and financial leadership across a number of industries, including resources, construction and infrastructure, financial services and travel and hospitality. She served as the Chief Financial Officer of Stella Group Pty Ltd. since September 2008. She served as the Chief Finance and Operations Director of Entertainment Rights Plc from January 18, 2007 to August 29, 2008. She served as Finance Director of Entertainment Rights PLC since August 2002 and was its Chief Financial Officer. She served as an Executive Finance Director and Chief Executive Officer of Heytesbury Pty Ltd. Prior to this, she served senior accounting, planning and investor relations roles at Bankwest in Australia and Kleinwort Benson in the UK. She served as a Member of Board of Commissioners at Tourism Western Australia from November 1, 2015 to 2018. She serves as a Director of Heytesbury Pty Limited (and subsidiaries) and John Holland Group Pty Limited. Ms. Gaines served as a Non Executive Director at Fortescue Metals Group Limited since February 22, 2013 until February 06, 2017. She served as a Non-Executive Director of ImpediMed Limited from March 1, 2016 to February 03, 2017. She served as a Non-Executive Independent Director of Nine Entertainment Co. Holdings Limited from March 1, 2016 to February 3, 2017. She served as a Director of NEXTDC Limited from June 24, 2015 to January 31, 2017. She served as a Non-Executive Director of Stella Travel Services UK Limited. She served as a Non-Executive Director at Mantra Group Limited from June 2009 to November 26, 2014. She was a Non Executive Director at lmpediMed Limited. She qualified as a Chartered Accountant with Ernst & Young in 1987. She is also a Member of the Institute of Chartered Accountants in Australia, Australian Institute of Company Directors and Chief Executive Women. Ms. Gaines holds Bachelor of Commerce degree and Master of Applied Finance degree from MacQuarie University.

CEO Compensation
  • Elizabeth's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Elizabeth's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Fortescue Metals Group management team in years:

1.3
Average Tenure
  • The average tenure for the Fortescue Metals Group management team is less than 2 years, this suggests a new team.
Management Team

Elizabeth Gaines

TITLE
CEO, MD & Executive Director
COMPENSATION
$3M
AGE
54
TENURE
1.3 yrs

Ian Wells

TITLE
Chief Financial Officer
COMPENSATION
$2M
TENURE
1.3 yrs

Greg Lilleyman

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
51
TENURE
1.3 yrs

Julie Shuttleworth

TITLE
Deputy Chief Executive Officer
COMPENSATION
$1M
TENURE
1.3 yrs

Peter Huston

TITLE
Chief General Counsel & Director of Corporate Services
TENURE
14.3 yrs

Danny Goeman

TITLE
Director of Sales & Marketing
TENURE
1.3 yrs

Linda O'Farrell

TITLE
Group Manager of People
TENURE
5.6 yrs

Alison Terry

TITLE
Group Manager of Corporate Affairs & Joint Company Secretary
TENURE
2.3 yrs

Eamon Harmon

TITLE
General Manager of Exploration
COMPENSATION
$190K

Mark Thomas

TITLE
Group Manager of Procurement and Information Services
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Fortescue Metals Group board of directors in years:

2.5
Average Tenure
55
Average Age
  • The average tenure for the Fortescue Metals Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Andrew Forrest

TITLE
Chairman of the Board
AGE
56
TENURE
15.8 yrs

Elizabeth Gaines

TITLE
CEO, MD & Executive Director
COMPENSATION
$3M
AGE
54
TENURE
6.3 yrs

Mark Barnaba

TITLE
Co-Deputy Chair & Lead Independent Director
COMPENSATION
$476K
AGE
55
TENURE
1.5 yrs

Sharon Warburton

TITLE
Co-Deputy Chair
COMPENSATION
$302K
AGE
48
TENURE
1.8 yrs

Sebastian Coe

TITLE
Non Executive Director
COMPENSATION
$55K
TENURE
1.3 yrs

Jean Baderschneider

TITLE
Non-Executive Director
COMPENSATION
$154K
TENURE
4.3 yrs

Penny Bingham-Hall

TITLE
Non-Executive Director
COMPENSATION
$177K
AGE
58
TENURE
2.5 yrs

Jennifer Morris

TITLE
Non-Executive Director
COMPENSATION
$187K
TENURE
2.5 yrs

Zhiqiang Cao

TITLE
Director
COMPENSATION
$70K
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
05. Mar 19 Sell Valin Resources Investments (Singapore) Pte. Ltd Company 05. Mar 19 05. Mar 19 -32,373,174 A$6.24 A$-202,060,449
05. Mar 19 Sell Valin Mining Investments (Singapore) Pte. Ltd. Company 05. Mar 19 05. Mar 19 -7,650,000 A$6.24 A$-47,748,251
30. Nov 18 Buy Minderoo Group Pty Ltd Company 23. Nov 18 30. Nov 18 30,058,660 A$4.00 A$116,663,162
22. Nov 18 Buy John Andrew Forrest Individual 15. Nov 18 21. Nov 18 5,877,306 A$3.95 A$23,194,018
31. Oct 18 Buy John Andrew Forrest Individual 26. Oct 18 26. Oct 18 3,951,981 A$3.80 A$15,004,089
10. Sep 18 Buy Jennifer Morris Individual 06. Sep 18 06. Sep 18 5,500 A$3.64 A$20,020
X
Management checks
We assess Fortescue Metals Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fortescue Metals Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Could The Fortescue Metals Group Limited (ASX:FMG) Ownership Structure Tell Us Something Useful?

A look at the shareholders of Fortescue Metals Group Limited (ASX:FMG) can tell us which group is most powerful. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Are Fortescue Metals Group Limited's (ASX:FMG) Interest Costs Too High?

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Fortescue Metals Group Limited (ASX:FMG) a safer option. … Let’s take a look at Fortescue Metals Group’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for Fortescue Metals Group

Simply Wall St -

Need To Know: Fortescue Metals Group Limited (ASX:FMG) Insiders Have Been Buying Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Fortescue Metals Group Limited (ASX:FMG). … Fortescue Metals Group Insider Transactions Over The Last Year. … While Fortescue Metals Group insiders bought shares last year, they didn't sell

Simply Wall St -

What To Know Before Buying Fortescue Metals Group Limited (ASX:FMG) For Its Dividend

Historically, Fortescue Metals Group Limited (ASX:FMG) has paid a dividend to shareholders. … Let's dig deeper into whether Fortescue Metals Group should have a place in your portfolio. … See our latest analysis for Fortescue Metals Group

Simply Wall St -

Should We Worry About Fortescue Metals Group Limited's (ASX:FMG) P/E Ratio?

How Do I Calculate Fortescue Metals Group's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 17.85 = $4.84 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.27

Simply Wall St -

If You Had Bought Fortescue Metals Group Stock Three Years Ago, You Could Pocket A 144% Gain Today

For instance the Fortescue Metals Group Limited (ASX:FMG) share price is 144% higher than it was three years ago. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Fortescue Metals Group achieved compound earnings per share growth of 40% per year.

Simply Wall St -

Based On Its ROE, Is Fortescue Metals Group Limited (ASX:FMG) A High Quality Stock?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Fortescue Metals Group Limited (ASX:FMG). … View our latest analysis for Fortescue Metals Group? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Fortescue Metals Group Limited (ASX:FMG) Investing Effectively In Its Business?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

How Many Fortescue Metals Group Limited (ASX:FMG) Shares Do Institutions Own?

The big shareholder groups in Fortescue Metals Group Limited (ASX:FMG) have power over the company. … With a market capitalization of AU$17b, Fortescue Metals Group is rather large. … See our latest analysis for Fortescue Metals Group

Simply Wall St -

Are Fortescue Metals Group Limited's (ASX:FMG) Interest Costs Too High?

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Fortescue Metals Group Limited (ASX:FMG) a safer option. … Today we will look at Fortescue Metals Group’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … View our latest analysis for Fortescue Metals Group

Simply Wall St -

Company Info

Description

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. 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. The company was founded in 2003 and is headquartered in East Perth, Australia.

Details
Name: Fortescue Metals Group Limited
FMG
Exchange: ASX
Founded: 2003
A$28,374,118,181
3,077,453,165
Website: http://www.fmgl.com.au
Address: Fortescue Metals Group Limited
87 Adelaide Terrace,
Level 2,
East Perth,
Western Australia, 6004,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX FMG Ordinary Shares Australian Securities Exchange AU AUD 19. Oct 1989
OTCPK FSUM.F Ordinary Shares Pink Sheets LLC US USD 19. Oct 1989
DB FVJ Ordinary Shares Deutsche Boerse AG DE EUR 19. Oct 1989
CHIA FMG Ordinary Shares Chi-X Australia AU AUD 19. Oct 1989
OTCPK FSUG.Y SPONSORED ADR Pink Sheets LLC US USD 17. Feb 2012
Number of employees
Current staff
Staff numbers
6,244
Fortescue Metals Group employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 10:32
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.