TSX:FM

Stock Analysis Report

First Quantum Minerals

Executive Summary

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has First Quantum Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.7%

FM

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-13.3%

FM

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: FM underperformed the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: FM underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

FMIndustryMarket
7 Day8.7%0.1%-0.2%
30 Day-9.3%-5.2%-3.3%
90 Day-15.1%-4.8%-1.6%
1 Year-13.2%-13.3%13.2%12.3%4.6%1.1%
3 Year-5.1%-5.3%-11.5%-13.1%13.1%3.1%
5 Year-40.9%-41.7%7.5%3.4%24.7%6.7%

Price Volatility Vs. Market

How volatile is First Quantum Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is First Quantum Minerals undervalued compared to its fair value and its price relative to the market?

37.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FM (CA$11.08) is trading below our estimate of fair value (CA$17.77)

Significantly Below Fair Value: FM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FM is poor value based on its PE Ratio (14.6x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: FM is poor value based on its PE Ratio (14.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: FM is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FM is good value based on its PB Ratio (0.6x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is First Quantum Minerals forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FM's forecast earnings growth (34.7% per year) is above the savings rate (1.9%).

Earnings vs Market: FM's earnings (34.7% per year) are forecast to grow faster than the Canadian market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FM's revenue (13.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: FM's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FM's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has First Quantum Minerals performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FM's earnings have declined by -15.6% per year over the past 5 years.

Accelerating Growth: FM's earnings growth over the past year (2500%) exceeds its 5-year average (-15.6% per year).

Earnings vs Industry: FM earnings growth over the past year (2500%) exceeded the Metals and Mining industry -13.7%.


Return on Equity

High ROE: FM's Return on Equity (4%) is considered low.


Return on Assets

ROA vs Industry: FM's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: FM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is First Quantum Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: FM's short term assets ($3.5B) exceeds its short term liabilities ($2.1B)

Long Term Liabilities: FM's short term assets (3.5B) do not cover its long term liabilities (11.9B)


Debt to Equity History and Analysis

Debt Level: FM's debt to equity ratio (90.4%) is considered high

Reducing Debt: FM's debt to equity ratio has increased from 55.4% to 90.4% over the past 5 years.

Debt Coverage: FM's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: Insufficient data to determine if FM's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: FM has a high level of physical assets or inventory.

Debt Coverage by Assets: FM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is First Quantum Minerals's current dividend yield, its reliability and sustainability?

0.088%

Current Dividend Yield


Dividend Yield vs Market

company0.09%marketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FM's dividend (0.088%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: FM's dividend (0.088%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: FM is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: FM is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FM is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of First Quantum Minerals's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Philip Kelvin Pascall (71yo)

22.9yrs

Tenure

US$4,602,602

Compensation

Mr. Philip Kelvin Rodda Pascall has been Chairman and Chief Executive Officer of First Quantum Minerals Limited since 1996. Mr. Pascall is a Co-Founder of First Quantum Minerals Limited. He worked in gener ...


CEO Compensation Analysis

Compensation vs. Market: Philip Kelvin's total compensation ($USD4.60M) is about average for companies of similar size in the Canadian market ($USD3.99M).

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


Management Age and Tenure

8.3yrs

Average Tenure

69yo

Average Age

Experienced Management: FM's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

65yo

Average Age

Experienced Board: FM's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Philip Kelvin Pascall (71yo)

    Chairman & CEO

    • Tenure: 22.9yrs
    • Compensation: US$4.60m
  • Geoffrey Newall (69yo)

    President & Director

    • Tenure: 23.4yrs
    • Compensation: US$1.25m
  • Sharon Loung

    Director of Investor Relations

    • Tenure: 11.3yrs
  • Wyatt Buck

    Director of Opeerations

    • Tenure: 8.8yrs
    • Compensation: US$906.60k
  • Hannes Meyer (49yo)

    Chief Financial Officer

    • Tenure: 7.6yrs
    • Compensation: US$1.37m
  • Juliet Wall

    General Manager of Finance

    • Tenure: 7.8yrs
  • Sarah E. Robertson

    Corporate Secretary

    • Tenure: 2.3yrs
  • Zenon Wozniak

    Director of Projects

    • Tenure: 6.8yrs
    • Compensation: US$5.26m
  • David deVries

    General Manager of Kansanshi Mining Plc

    • Tenure: 0yrs
  • Tristan Pascall

    Managing Director of Cobre Panama

    • Tenure: 0yrs

Board Members

  • Andrew Adams (62yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$200.00k
  • Bob Harding (61yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$240.00k
  • Philip Kelvin Pascall (71yo)

    Chairman & CEO

    • Tenure: 22.9yrs
    • Compensation: US$4.60m
  • Kathy Hogenson (58yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$185.00k
  • Simon Scott (61yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$125.70k
  • Geoffrey Newall (69yo)

    President & Director

    • Tenure: 23.4yrs
    • Compensation: US$1.25m
  • Peter St George (72yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$200.00k
  • Paul Brunner (68yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$200.00k
  • Jo Warner

    Independent Director

    • Tenure: 0.4yrs

Company Information

First Quantum Minerals Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Quantum Minerals Ltd.
  • Ticker: FM
  • Exchange: TSX
  • Founded: 1983
  • Industry: Copper
  • Sector: Materials
  • Market Cap: CA$7.592b
  • Shares outstanding: 685.24m
  • Website: https://www.first-quantum.com

Number of Employees


Location

  • First Quantum Minerals Ltd.
  • 330 Bay Street
  • Suite 1101
  • Toronto
  • Ontario
  • M5H 2S8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FMTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
IZ1DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1988
FQVL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores for copper, nickel, gold, and zinc ores, as well as produces acid. The compa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.