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Market Cap

UK£6.5b

Last Updated

2021/05/16 17:40 UTC

Data Sources

Company Financials +

Executive Summary

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. More Details


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRES's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

FRES

-3.0%

GB Metals and Mining

-1.2%

GB Market


1 Year Return

20.0%

FRES

72.3%

GB Metals and Mining

27.6%

GB Market

Return vs Industry: FRES underperformed the UK Metals and Mining industry which returned 72.3% over the past year.

Return vs Market: FRES underperformed the UK Market which returned 27.6% over the past year.


Shareholder returns

FRESIndustryMarket
7 Day-2.8%-3.0%-1.2%
30 Day-4.4%3.7%0.6%
90 Day-13.6%9.7%5.3%
1 Year22.4%20.0%81.2%72.3%33.1%27.6%
3 Year-26.2%-30.5%58.6%36.3%11.1%-1.6%
5 Year-9.6%-18.0%271.4%184.5%48.7%20.7%

Long-Term 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?

24.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRES (£8.85) is trading above our estimate of fair value (£3.34)

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 (24.6x) compared to the UK Metals and Mining industry average (12x).

PE vs Market: FRES is good value based on its PE Ratio (24.6x) compared to the UK market (25.7x).


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 (2.6x) compared to the GB Metals and Mining industry average (2.2x).


Future Growth

How is Fresnillo forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRES's forecast earnings growth (11.5% per year) is above the savings rate (0.9%).

Earnings vs Market: FRES's earnings (11.5% per year) are forecast to grow slower than the UK market (17.6% per year).

High Growth Earnings: FRES's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRES's revenue (5.7% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: FRES's revenue (5.7% 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 (12%).


Past Performance

How has Fresnillo performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRES has high quality earnings.

Growing Profit Margin: FRES's current net profit margins (15.4%) are higher than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: FRES's earnings have declined by 2.4% per year over the past 5 years.

Accelerating Growth: FRES's earnings growth over the past year (83.4%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: FRES earnings growth over the past year (83.4%) exceeded the Metals and Mining industry 20.4%.


Return on Equity

High ROE: FRES's Return on Equity (10.4%) is considered low.


Financial Health

How is Fresnillo's financial position?


Financial Position Analysis

Short Term Liabilities: FRES's short term assets ($2.0B) exceed its short term liabilities ($339.8M).

Long Term Liabilities: FRES's short term assets ($2.0B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: FRES's debt to equity ratio (33.8%) is considered satisfactory.

Reducing Debt: FRES's debt to equity ratio has increased from 33.5% to 33.8% over the past 5 years.

Debt Coverage: FRES's debt is well covered by operating cash flow (75.2%).

Interest Coverage: FRES's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


Dividend

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

2.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRES's dividend (2.07%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: FRES's dividend (2.07%) is low compared to the top 25% of dividend payers in the UK market (4.09%).


Stability and Growth of Payments

Stable Dividend: FRES's dividend payments have been volatile in the past 10 years.

Growing Dividend: FRES's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.8%), FRES's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRES's dividends in 3 years are forecast to be well covered by earnings (43.1% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Octavio M. Alvidrez (55 yo)

8.75yrs

Tenure

US$939,000

Compensation

Mr. Octavio M. Alvidrez has been Chief Executive Officer of Fresnillo plc since August 15, 2012. Mr. Alvidrez 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 ($USD939.00K) is below average for companies of similar size in the UK market ($USD2.25M).

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


Leadership Team

Experienced Management: FRES's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: FRES's board of directors are considered experienced (6 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: 1887
  • Industry: Precious Metals and Minerals
  • Sector: Materials
  • Market Cap: UK£6.523b
  • 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


Biography

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. The company primarily explores for silver, gold, lead, and zinc concentrates. Its flagship project is Fresnillo silver mine locat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 17:40
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.