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Fresnillo

LSE:FRES
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FRES
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Fresnillo Plc mines, develops, and produces non-ferrous minerals in Mexico. The last earnings update was 97 days ago. More info.


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FRES Share Price and Events
7 Day Returns
-11.7%
LSE:FRES
2.1%
GB Metals and Mining
0.2%
GB Market
1 Year Returns
-27.3%
LSE:FRES
11.8%
GB Metals and Mining
-2%
GB Market
FRES Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fresnillo (FRES) -11.7% -10.3% 4.3% -27.3% -56% -15.7%
GB Metals and Mining 2.1% 1.3% -1.1% 11.8% 66.2% 20.3%
GB Market 0.2% 1.1% 0.1% -2% 11.2% 6.4%
1 Year Return vs Industry and Market
  • FRES underperformed the Metals and Mining industry which returned 11.8% over the past year.
  • FRES underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
FRES
Industry
5yr Volatility vs Market

Value

 Is Fresnillo 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 Fresnillo 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 Fresnillo.

LSE:FRES Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

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 LSE:FRES
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.062 (1 + (1- 30%) (10.97%))
1.096
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.096 * 5.96%)
7.76%

Discounted Cash Flow Calculation for LSE:FRES using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fresnillo 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.

LSE:FRES DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.76%)
2020 332.27 Analyst x3 308.34
2021 646.58 Analyst x4 556.81
2022 939.81 Est @ 45.35% 751.05
2023 1,241.63 Est @ 32.11% 920.79
2024 1,525.32 Est @ 22.85% 1,049.72
2025 1,774.89 Est @ 16.36% 1,133.52
2026 1,984.71 Est @ 11.82% 1,176.24
2027 2,156.25 Est @ 8.64% 1,185.88
2028 2,294.65 Est @ 6.42% 1,171.12
2029 2,406.19 Est @ 4.86% 1,139.61
Present value of next 10 years cash flows $9,393.09
LSE:FRES DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,406.19 × (1 + 1.23%) ÷ (7.76% – 1.23%)
$37,283.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $37,283.69 ÷ (1 + 7.76%)10
$17,658.20
LSE:FRES Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,393.09 + $17,658.20
$27,051.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $27,051.29 / 736.89
$36.71
LSE:FRES Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:FRES)
0.801
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $36.71 x 0.801
£29.4
Value per share (GBP) From above. £29.40
Current discount Discount to share price of £7.92
= -1 x (£7.92 - £29.40) / £29.40
73%

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

Current Discount
Amount off the current price Fresnillo is available for.
Intrinsic value
>50%
Share price is £7.92 vs Future cash flow value of £29.4
Current Discount Checks
For Fresnillo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fresnillo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fresnillo's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Fresnillo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fresnillo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:FRES PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.47
LSE:FRES Share Price ** LSE (2019-07-22) in GBP £7.92
LSE:FRES Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.249 $9.89
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PE Ratio Median Figure of 37 Publicly-Listed Metals and Mining Companies 10.15x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

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

** Primary Listing of Fresnillo.

LSE:FRES PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:FRES Share Price ÷ EPS (both in USD)

= 9.89 ÷ 0.47

20.84x

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

  • Fresnillo is overvalued based on earnings compared to the GB Metals and Mining industry average.
  • Fresnillo is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Fresnillo's expected growth come at a high price?
Raw Data
LSE:FRES PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
19.9%per year
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PEG Ratio Median Figure of 29 Publicly-Listed Metals and Mining Companies 0.98x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 571 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:FRES PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.84x ÷ 19.9%

1.05x

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

  • Fresnillo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fresnillo's assets?
Raw Data
LSE:FRES PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $4.14
LSE:FRES Share Price * LSE (2019-07-22) in GBP £7.92
LSE:FRES Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.249 $9.89
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PB Ratio Median Figure of 117 Publicly-Listed Metals and Mining Companies 1.03x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:FRES PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:FRES Share Price ÷ Book Value per Share (both in USD)

= 9.89 ÷ 4.14

2.39x

* Primary Listing of Fresnillo.

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

  • Fresnillo is overvalued based on assets compared to the GB Metals and Mining industry average.
X
Value checks
We assess Fresnillo'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. Fresnillo has a total score of 2/6, 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 Fresnillo expected to perform in the next 1 to 3 years based on estimates from 14 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
19.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fresnillo expected to grow at an attractive rate?
  • Fresnillo's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Fresnillo's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Fresnillo's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:FRES Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:FRES Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 19.9%
LSE:FRES Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 7.1%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 0.6%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*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
LSE:FRES Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:FRES Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,585 1,016 608 9
2020-12-31 2,377 833 368 14
2019-12-31 2,146 760 255 14
LSE:FRES Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,104 588 350
2018-09-30 2,158 681 416
2018-06-30 2,213 774 482
2018-03-31 2,153 768 521
2017-12-31 2,093 761 561
2017-09-30 2,054 803 565
2017-06-30 2,014 844 569
2017-03-31 1,960 871 498
2016-12-31 1,906 898 427
2016-09-30 1,742 793 294
2016-06-30 1,579 687 161
2016-03-31 1,512 615 116

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fresnillo's earnings are expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).
  • Fresnillo's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
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
LSE:FRES Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Fresnillo Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FRES Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.82 1.23 0.61 4.00
2020-12-31 0.53 0.86 0.25 9.00
2019-12-31 0.35 0.61 0.14 9.00
LSE:FRES Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.47
2018-09-30 0.56
2018-06-30 0.65
2018-03-31 0.71
2017-12-31 0.76
2017-09-30 0.77
2017-06-30 0.77
2017-03-31 0.68
2016-12-31 0.58
2016-09-30 0.40
2016-06-30 0.22
2016-03-31 0.16

*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.
  • Fresnillo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fresnillo'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Fresnillo has a total score of 3/6, 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 Fresnillo 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 Fresnillo'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.
  • Fresnillo has delivered over 20% year on year earnings growth in the past 5 years.
  • Fresnillo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fresnillo's 1-year earnings growth is negative, it can't be compared to the GB Metals and Mining industry average.
Earnings and Revenue History
Fresnillo'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 Fresnillo Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:FRES 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 2,103.79 349.85 277.56
2018-09-30 2,158.15 415.85 266.66
2018-06-30 2,212.52 481.86 255.75
2018-03-31 2,152.91 521.22 244.45
2017-12-31 2,093.31 560.58 233.16
2017-09-30 2,053.88 564.62 224.78
2017-06-30 2,014.46 568.67 216.41
2017-03-31 1,959.98 497.83 206.51
2016-12-31 1,905.50 426.99 196.62
2016-09-30 1,742.23 294.02 191.60
2016-06-30 1,578.96 161.06 186.59
2016-03-31 1,511.67 115.79 201.48
2015-12-31 1,444.39 70.52 216.38
2015-09-30 1,466.66 62.67 238.62
2015-06-30 1,488.93 54.82 260.87
2015-03-31 1,451.32 81.63 255.06
2014-12-31 1,413.70 108.45 249.25
2014-09-30 1,390.02 167.14 241.65
2014-06-30 1,366.35 225.83 234.04
2014-03-31 1,490.76 233.14 255.51
2013-12-31 1,615.17 240.45 276.98
2013-09-30 1,806.64 378.82 291.09
2013-06-30 1,998.12 517.19 305.21
2013-03-31 2,077.76 629.20 298.92
2012-12-31 2,157.40 741.22 292.63
2012-09-30 2,189.15 761.55 266.41

*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.
  • Fresnillo has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fresnillo used its assets less efficiently than the GB Metals and Mining industry average last year based on Return on Assets.
  • Fresnillo has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fresnillo'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.
Fresnillo has a total score of 2/6, 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 Fresnillo'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 Fresnillo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fresnillo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fresnillo's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Fresnillo'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 covered by short term assets, assets are 1.6x 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 Fresnillo Company Filings, last reported 6 months ago.

LSE:FRES Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,128.25 800.13 560.79
2018-09-30 3,128.25 800.13 560.79
2018-06-30 3,091.79 799.48 688.55
2018-03-31 3,091.79 799.48 688.55
2017-12-31 3,066.60 799.05 876.03
2017-09-30 3,066.60 799.05 876.03
2017-06-30 2,891.37 798.43 884.90
2017-03-31 2,891.37 798.43 884.90
2016-12-31 2,716.37 798.03 911.95
2016-09-30 2,716.37 798.03 911.95
2016-06-30 2,529.40 797.54 701.17
2016-03-31 2,529.40 797.54 701.17
2015-12-31 2,374.34 797.03 500.14
2015-09-30 2,374.34 797.03 500.14
2015-06-30 2,358.88 796.51 475.75
2015-03-31 2,358.88 796.51 475.75
2014-12-31 2,301.84 796.16 449.34
2014-09-30 2,301.84 796.16 449.34
2014-06-30 2,795.51 836.78 1,164.28
2014-03-31 2,795.51 836.78 1,164.28
2013-12-31 2,671.97 836.23 1,251.69
2013-09-30 2,671.97 836.23 1,251.69
2013-06-30 2,786.58 0.00 570.83
2013-03-31 2,786.58 0.00 570.83
2012-12-31 2,612.24 0.00 613.77
2012-09-30 2,612.24 0.00 613.77
  • Fresnillo's level of debt (25.6%) 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 (31.3% vs 25.6% today).
  • Debt is well covered by operating cash flow (73.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 24.3x coverage).
X
Financial health checks
We assess Fresnillo'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. Fresnillo 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 Fresnillo'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
2.77%
Current annual income from Fresnillo dividends. Estimated to be 2.4% next year.
If you bought £2,000 of Fresnillo shares you are expected to receive £55 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?
  • Fresnillo's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Fresnillo's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
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
LSE:FRES 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 14 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 6.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

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

LSE:FRES Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.33 10.00
2020-12-31 0.24 15.00
2019-12-31 0.17 13.00
LSE:FRES Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-16 0.274 2.703
2019-02-26 0.274 2.507
2018-05-01 0.404 3.253
2017-07-13 0.301 1.632
2016-08-02 0.172 0.903
2016-04-01 0.067 0.383
2015-08-04 0.042 0.390
2015-05-06 0.030 0.276
2014-08-06 0.000 0.000
2014-08-05 0.000 0.000
2013-10-24 0.000 0.000
2013-08-20 0.473 2.795
2013-04-15 0.579 3.584
2012-04-26 1.029 4.066
2012-03-06 1.029 3.895
2011-03-01 0.448 1.724
2010-08-03 0.254 1.224
2010-03-02 0.215 1.567
2010-03-01 0.215 1.794
2009-08-17 0.105 0.849
2009-05-12 0.154 1.605
2008-08-19 0.118 3.179
2008-08-18 0.118 1.771

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Fresnillo's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Fresnillo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - 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 Fresnillo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fresnillo 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 Fresnillo'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
Octavio Alvídrez
COMPENSATION $886,000
AGE 54
TENURE AS CEO 6.9 years
CEO Bio

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 General Manager of the Madero mine, one of Mexico’s largest mines operated by Peñoles. Mr. Alvídrez joined the Peñoles Group in August 1988, since then he has held a number of senior operational and financial positions across Peñoles and Fresnillo, including that of Treasurer, Head of Investor Relations in London and Head of Procurement of concentrates for the smelters. Mr. Alvídrez holds a bachelor’s degree in mining engineering from the University of Guanajuato and received his MBA from the Wharton School of Business of the University of Pennsylvania. Mr. Alvídrez is currently the President of the Silver Institute, a Board of Directors Member of the Lowell Institute for Mineral Resources of the University of Arizona, a Member of the Mexican Mining Chamber, and a Vice President of the Advisory Board of the School of Mines of the University of Guanajuato, Mexico.

CEO Compensation
  • Octavio's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Octavio's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Fresnillo management team in years:

6.9
Average Tenure
54
Average Age
  • The average tenure for the Fresnillo management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Octavio Alvídrez

TITLE
Chief Executive Officer
COMPENSATION
$886K
AGE
54
TENURE
6.9 yrs

Mario Arreguín

TITLE
Chief Financial Officer
AGE
70
TENURE
11.3 yrs

André Sougarret Larroquete

TITLE
Chief Operating Officer
AGE
53
TENURE
0.5 yrs

Gabriela Mayor

TITLE
Head of Investor Relations
Board of Directors Tenure

Average tenure and age of the Fresnillo board of directors in years:

8.2
Average Tenure
69
Average Age
  • The tenure for the Fresnillo board of directors is about average.
Board of Directors

Alberto González

TITLE
Non-Executive Chairman
COMPENSATION
$47K
AGE
88
TENURE
11.3 yrs

Alejandro Baillères Gual

TITLE
Deputy Chairman
COMPENSATION
$47K
AGE
58
TENURE
1.4 yrs

Arturo Fernández Pérez

TITLE
Non-Executive Director
COMPENSATION
$47K
AGE
66
TENURE
11.3 yrs

Charles Jacobs

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$120K
AGE
52
TENURE
5.2 yrs

Víctor Alberto Celorio

TITLE
Independent Non-Executive Director
COMPENSATION
$58K
AGE
68
TENURE
3.2 yrs

Jaime Guillen

TITLE
Non-Executive Director
COMPENSATION
$47K
AGE
83
TENURE
11.3 yrs

Fernando Ruíz Sahagún

TITLE
Non-Executive Director
COMPENSATION
$47K
AGE
75
TENURE
11.3 yrs

Juan Aznar

TITLE
Non-Executive Director
COMPENSATION
$47K
AGE
70
TENURE
11.5 yrs

Bárbara Garza Lagüera

TITLE
Independent Non-Executive Director
COMPENSATION
$47K
TENURE
5.2 yrs

Dame Macgregor

TITLE
Independent Non-Executive Director
COMPENSATION
$120K
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Fresnillo'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. Fresnillo 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

Fresnillo Plc (LON:FRES) Investors Should Think About This Before Buying It For Its Dividend

Is Fresnillo Plc (LON:FRES) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A slim 2.4% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Fresnillo could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. … It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past.

Simply Wall St -

Something To Consider Before Buying Fresnillo Plc (LON:FRES) For The 2.4% Dividend

Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Those Who Purchased Fresnillo (LON:FRES) Shares Three Years Ago Have A 32% Loss To Show For It

In fact, the share price is down 32% in the last three years, falling well short of the market return. … Although the share price is down over three years, Fresnillo actually managed to grow EPS by 71% per year in that time. … We note that for Fresnillo the TSR over the last 3 years was -27%, which is better than the share price return mentioned above.

Simply Wall St -

Should You Be Tempted To Sell Fresnillo Plc (LON:FRES) Because Of Its P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Fresnillo: P/E of 21.14 = $10.04 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.47 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each £1 of company earnings. … Earnings growth means that in the future the 'E' will be higher.

Simply Wall St -

What Can We Learn From Fresnillo Plc’s (LON:FRES) Investment Returns?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Fresnillo: 0.11 = US$503m ÷ (US$4.8b - US$161m) (Based on the trailing twelve months to December 2018.) So, Fresnillo has an ROCE of 11%. … Do Fresnillo's Current Liabilities Skew Its ROCE? … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

How Do Analysts See Fresnillo Plc (LON:FRES) Performing Over The Next Few Years?

Below, I've laid out key numbers on how market analysts perceive Fresnillo's earnings growth trajectory over the next couple of years and whether the future looks brighter. … See our latest analysis for Fresnillo Analysts' expectations for the coming year seems rather muted, with earnings growing by a single digit 4.1%. … LSE:FRES Past and Future Earnings, May 9th 2019 While it is informative knowing the growth each year relative to today’s figure, it may be more beneficial analyzing the rate at which the business is rising or falling on average every year.

Simply Wall St -

How Do Analysts See Fresnillo Plc (LON:FRES) Performing In The Next Couple Of Years?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings announcement Fresnillo Plc (LON:FRES) released in December 2018

Simply Wall St -

Interested In Fresnillo PLC (LON:FRES)’s Upcoming US$0.17 Dividend? You Have 3 Days Left

Investors who want to cash in on Fresnillo PLC's (LON:FRES) upcoming dividend of US$0.17 per share have only 3 days left to buy the shares before its ex-dividend date, 25 April 2019, in time for dividends payable on the 24 May 2019. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Is Fresnillo PLC (LON:FRES) Overpaying Its CEO?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Octavio Alvídrez's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Fresnillo PLC has a market cap of UK£5.9b, and is paying total annual CEO compensation of US$1.1m.

Simply Wall St -

Taking A Look At Fresnillo PLC's (LON:FRES) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Fresnillo Plc mines, develops, and produces non-ferrous minerals in Mexico. It primarily explores for silver, gold, lead, and zinc concentrates. The company's operating mines include the Fresnillo, Saucito, Ciénega, Herradura, Soledad-Dipolos, Noche Buena, and San Julián; development projects comprise the Pyrites Plant, and second line of the DLP at Herradura; and advanced exploration projects consist of the Juanicipio, Las Casas, Cebollitas Cluster, Centauro Deep, Centauro Pit Expansion as part of Herradura, and Orisyvo. Fresnillo Plc has mining concessions covering approximately 1.8 million hectares in Mexico. It also leases mining equipment; produces doré bars; and provides administrative services. The company was incorporated in 2007 and is headquartered in Mexico City, Mexico. Fresnillo Plc is a subsidiary of Industrias Peñoles S.A.B. de C.V.

Details
Name: Fresnillo Plc
FRES
Exchange: LSE
Founded: 2007
£5,839,144,799
736,893,589
Website: http://www.fresnilloplc.com
Address: Fresnillo Plc
Calzada Legaria No. 549,
Torre 2,
Mexico City,
Distrito Federal, 11250,
Mexico
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE FRES Ordinary Shares London Stock Exchange GB GBP 09. May 2008
OTCPK FNLP.F Ordinary Shares Pink Sheets LLC US USD 09. May 2008
DB FNL Ordinary Shares Deutsche Boerse AG DE EUR 09. May 2008
BMV FRES * Ordinary Shares Bolsa Mexicana de Valores MX MXN 09. May 2008
BATS-CHIXE FRESL Ordinary Shares BATS 'Chi-X Europe' GB GBP 09. May 2008
Number of employees
Current staff
Staff numbers
5,139
Fresnillo employees.
Industry
Precious Metals and Minerals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 21:16
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/22
Last earnings filing: 2019/04/16
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.