LSE:FRES

Stock Analysis Report

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Executive Summary

Fresnillo Plc mines, develops, and produces non-ferrous minerals in Mexico.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Fresnillo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FRES's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.1%

FRES

-1.3%

GB Metals and Mining

-0.7%

GB Market


1 Year Return

99.2%

FRES

8.4%

GB Metals and Mining

-12.7%

GB Market

Return vs Industry: FRES exceeded the UK Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: FRES exceeded the UK Market which returned -16.3% over the past year.


Shareholder returns

FRESIndustryMarket
7 Day-0.1%-1.3%-0.7%
30 Day49.0%8.9%-1.3%
90 Day85.0%25.6%4.8%
1 Year102.4%99.2%16.2%8.4%-8.8%-12.7%
3 Year-8.0%-13.7%33.7%11.2%-7.7%-19.0%
5 Year113.3%96.3%120.1%68.2%11.6%-13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fresnillo undervalued compared to its fair value and its price relative to the market?

61.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRES (£12.75) is trading above our estimate of fair value (£8.39)

Significantly Below Fair Value: FRES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FRES is poor value based on its PE Ratio (61.8x) compared to the GB Metals and Mining industry average (12.1x).

PE vs Market: FRES is poor value based on its PE Ratio (61.8x) compared to the UK market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: FRES is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: FRES is overvalued based on its PB Ratio (3.9x) compared to the GB Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Fresnillo forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRES's forecast earnings growth (28.9% per year) is above the savings rate (1.2%).

Earnings vs Market: FRES's earnings (28.9% per year) are forecast to grow faster than the UK market (22% per year).

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

Revenue vs Market: FRES's revenue (7% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: FRES's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRES's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Fresnillo performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRES has high quality earnings.

Growing Profit Margin: FRES's current net profit margins (9.1%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: FRES's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: FRES's earnings growth over the past year (4.4%) is below its 5-year average (6.1% per year).

Earnings vs Industry: FRES earnings growth over the past year (4.4%) exceeded the Metals and Mining industry 3.4%.


Return on Equity

High ROE: FRES's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Fresnillo's financial position?


Financial Position Analysis

Short Term Liabilities: FRES's short term assets ($1.2B) exceed its short term liabilities ($192.8M).

Long Term Liabilities: FRES's short term assets ($1.2B) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: FRES's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: FRES's debt to equity ratio has reduced from 33.8% to 25.3% over the past 5 years.

Debt Coverage: FRES's debt is well covered by operating cash flow (83.7%).

Interest Coverage: FRES's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Fresnillo current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FRES's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.91%).

High Dividend: FRES's dividend (0.87%) is low compared to the top 25% of dividend payers in the UK market (5.49%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: FRES is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

10.2yrs

Average management tenure


CEO

Octavio M. Alvídrez (55 yo)

8yrs

Tenure

US$1,164,000

Compensation

Mr. Octavio M. Alvídrez has been Chief Executive Officer of Fresnillo plc since August 15, 2012. Mr. Alvídrez has extensive experience within the mining industry having previously held the position of Gene ...


CEO Compensation Analysis

Compensation vs Market: Octavio M.'s total compensation ($USD1.16M) is below average for companies of similar size in the UK market ($USD4.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Octavio M. Alvídrez
Chief Executive Officer8yrsUS$1.16mno data
Mario Arreguín
Chief Financial Officer12.33yrsno datano data
André Larroquete
Chief Operating Officer1.58yrsno datano data
Gabriela Mayor
Head of Investor Relationsno datano datano data
David Giles
Vice President of Exploration12.33yrsno datano data
Exequiel Rolón
Head of Sustainabilityno datano datano data

10.2yrs

Average Tenure

59yo

Average Age

Experienced Management: FRES's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alberto Bailleres González
Non-Independent Non-Executive Chairman12.33yrsUS$45.00kno data
Charles Jacobs
Senior Independent Non-Executive Director6.25yrsUS$118.00k0.00022%
$ 20.7k
Alejandro Bailleres Gual
Non-Independent Non-Executive Deputy Chairman2.5yrsUS$45.00kno data
Juan Bordes Aznar
Non-Independent Non-Executive Director12.58yrsUS$45.00k0.0020%
$ 191.7k
Luis Robles Miaja
Independent Non-Executive Director1.25yrsUS$31.00kno data
Georgina Kessel Martinez
Independent Non Executive Director2.25yrsUS$45.00kno data
Arturo Manuel Fernandez Pérez
Non-Independent Non-Executive Director12.33yrsUS$45.00kno data
Fernando Benjamín Ruíz Sahagún
Non-Independent Non-Executive Director12.33yrsUS$45.00k0.0041%
$ 382.4k
Víctor Alberto Tiburcio Celorio
Independent Non-Executive Director4.25yrsUS$64.00kno data
Bárbara Garza Lagüera
Independent Non-Executive Director6.25yrsUS$45.00kno data
Dame Macgregor
Independent Non-Executive Director3.25yrsUS$115.00kno data
Myriam Guadalupe De la Vega Arizpe
Independent Non-Executive Director0.25yrno datano data

5.3yrs

Average Tenure

69yo

Average Age

Experienced Board: FRES's board of directors are considered experienced (5.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fresnillo Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fresnillo Plc
  • Ticker: FRES
  • Exchange: LSE
  • Founded:
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: UK£9.395b
  • Shares outstanding: 736.89m
  • Website: https://www.fresnilloplc.com

Number of Employees


Location

  • Fresnillo Plc
  • Calzada Legaria No. 549
  • Torre 2
  • Mexico City
  • Distrito Federal
  • 11250
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRESLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2008
FNLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2008
FRES *BMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2008
FNLP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2008
FRESLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2008

Biography

Fresnillo Plc mines, develops, and produces non-ferrous minerals in Mexico. It primarily explores for silver, gold, lead, and zinc concentrates. The company’s flagship project is Fresnillo silver mine loca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 21:51
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.