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FRES

Fresnillo LSE:FRES Stock Report

Last Price

UK£6.90

Market Cap

UK£5.1b

7D

-5.5%

1Y

-12.1%

Updated

23 Sep, 2022

Data

Company Financials +
FRES fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance1/6
Financial Health5/6
Dividends2/6

FRES Stock Overview

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

Fresnillo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fresnillo
Historical stock prices
Current Share PriceUK£6.90
52 Week HighUK£9.98
52 Week LowUK£6.11
Beta0.16
1 Month Change-5.14%
3 Month Change-12.30%
1 Year Change-12.08%
3 Year Change-1.82%
5 Year Change-50.88%
Change since IPO32.73%

Recent News & Updates

Sep 24
Calculating The Fair Value Of Fresnillo plc (LON:FRES)

Calculating The Fair Value Of Fresnillo plc (LON:FRES)

Today we will run through one way of estimating the intrinsic value of Fresnillo plc ( LON:FRES ) by taking the...

Aug 19
Is Fresnillo (LON:FRES) Using Too Much Debt?

Is Fresnillo (LON:FRES) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 29
Fresnillo (LON:FRES) Ticks All The Boxes When It Comes To Earnings Growth

Fresnillo (LON:FRES) Ticks All The Boxes When It Comes To Earnings Growth

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

FRESGB Metals and MiningGB Market
7D-5.5%-4.4%-3.1%
1Y-12.1%-9.7%-13.8%

Return vs Industry: FRES underperformed the UK Metals and Mining industry which returned -5.4% over the past year.

Return vs Market: FRES matched the UK Market which returned -12.9% over the past year.

Price Volatility

Is FRES's price volatile compared to industry and market?
FRES volatility
FRES Average Weekly Movement6.1%
Metals and Mining Industry Average Movement8.0%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: FRES is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FRES's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18877,871Octavio M. Alvidrezhttps://www.fresnilloplc.com

Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Other. The company primarily explores for silver, gold, lead, and zinc concentrates.

Fresnillo Fundamentals Summary

How do Fresnillo's earnings and revenue compare to its market cap?
FRES fundamental statistics
Market CapUK£5.09b
Earnings (TTM)UK£216.28m
Revenue (TTM)UK£2.28b

23.5x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRES income statement (TTM)
RevenueUS$2.50b
Cost of RevenueUS$1.79b
Gross ProfitUS$700.70m
Other ExpensesUS$464.24m
EarningsUS$236.46m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.32
Gross Margin28.08%
Net Profit Margin9.48%
Debt/Equity Ratio33.5%

How did FRES perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

85%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FRES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FRES?

Other financial metrics that can be useful for relative valuation.

FRES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA6.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does FRES's PE Ratio compare to its peers?

FRES PE Ratio vs Peers
The above table shows the PE ratio for FRES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5x
PDL Petra Diamonds
3.4x-18.1%UK£213.6m
SLP Sylvania Platinum
4.7x7.5%UK£243.5m
JLP Jubilee Metals Group
11.1x40.2%UK£316.6m
NLMK Novolipetsk Steel
0.8xn/aUS$4.1b
FRES Fresnillo
23.5x14.0%UK£5.1b

Price-To-Earnings vs Peers: FRES is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (5x).


Price to Earnings Ratio vs Industry

How does FRES's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

Price-To-Earnings vs Industry: FRES is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the UK Metals and Mining industry average (5.3x)


Price to Earnings Ratio vs Fair Ratio

What is FRES's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FRES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.5x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: FRES is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).


Share Price vs Fair Value

What is the Fair Price of FRES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRES (£6.9) is trading below our estimate of fair value (£8.37)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Fresnillo forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRES's forecast earnings growth (14% per year) is above the savings rate (0.9%).

Earnings vs Market: FRES's earnings (14% per year) are forecast to grow faster than the UK market (8.6% per year).

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

Revenue vs Market: FRES's revenue (3.5% per year) is forecast to grow slower than the UK market (4.5% per year).

High Growth Revenue: FRES's revenue (3.5% 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 (9%).


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Past Performance

How has Fresnillo performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRES has high quality earnings.

Growing Profit Margin: FRES's current net profit margins (9.5%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: FRES's earnings have declined by 7.2% per year over the past 5 years.

Accelerating Growth: FRES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRES had negative earnings growth (-61.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.4%).


Return on Equity

High ROE: FRES's Return on Equity (7.2%) is considered low.


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Financial Health

How is Fresnillo's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FRES's short term assets ($2.0B) exceed its short term liabilities ($453.1M).

Long Term Liabilities: FRES's short term assets ($2.0B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: FRES's net debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: FRES's debt to equity ratio has increased from 27.6% to 33.5% over the past 5 years.

Debt Coverage: FRES's debt is well covered by operating cash flow (61.9%).

Interest Coverage: FRES's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FRES's dividend (3.63%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: FRES's dividend (3.63%) is low compared to the top 25% of dividend payers in the UK market (5.68%).


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 fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (85.4%), FRES's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (140.2%), FRES's dividend payments are not well covered by cash flows.


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Management

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

1.9yrs

Average management tenure


CEO

Octavio M. Alvidrez (57 yo)

10.08yrs

Tenure

US$975,000

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 ($USD975.00K) is below average for companies of similar size in the UK market ($USD3.03M).

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 ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: FRES's board of directors are considered experienced (7.3 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

Top 25 shareholders own 92.05% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
74.99%
Industrias Peñoles, S.A.B. de C.V.
552,591,460$3.8b0%no data
4.7%
T. Rowe Price Group, Inc.
34,640,005$239.1m5.49%0.03%
1.95%
BlackRock, Inc.
14,391,705$99.3m41%no data
1.75%
First Eagle Investment Management, LLC
12,863,982$88.8m-12.44%0.19%
1.48%
Jupiter Fund Management Plc
10,888,889$75.2m0%0.3%
1.03%
The Vanguard Group, Inc.
7,608,918$52.5m2.44%no data
0.71%
Legal & General Investment Management Limited
5,260,651$36.3m57.51%0.01%
0.67%
Brookfield Asset Management Inc.
4,943,915$34.1m7.22%0.11%
0.66%
Mirae Asset Global Investments Co., Ltd
4,834,133$33.4m15.83%0.06%
0.58%
Capital Research and Management Company
4,295,300$29.6m0%no data
0.42%
Baker Steel Capital Managers LLP
3,101,000$21.4m2.85%3.2%
0.35%
Merseyside Pension Fund
2,612,557$18.0m-1.78%6.62%
0.35%
UBS Asset Management
2,548,600$17.6m-12.74%no data
0.28%
SEI Investments Company
2,037,620$14.1m0%0.03%
0.26%
Sanlam FOUR Investments UK Limited
1,900,000$13.1m0%1.07%
0.25%
azValor Asset Management SGIIC, S.A.U.
1,845,266$12.7m1.78%0.88%
0.24%
Societe Generale Group, Banking Investments
1,804,692$12.5m896.78%0.13%
0.21%
Russell Investment Management, LLC
1,582,950$10.9m-8.91%0.02%
0.2%
Signal Iduna Asset Management GmbH
1,446,357$10.0m306.45%1.24%
0.18%
DZ Bank AG, Asset Management Arm
1,295,983$8.9m-25.41%0.15%
0.17%
HSBC Global Asset Management (UK) Limited
1,275,987$8.8m-31.97%0.01%
0.16%
Barclays Bank PLC, Wealth and Investment Management Division
1,180,482$8.1m-9.02%0.1%
0.16%
GAMCO Investors, Inc.
1,163,159$8.0m0%0.04%
0.16%
A J Bell Holdings Limited, Asset Management Arm
1,144,293$7.9m-8.12%0.12%
0.14%
HBOS Investment Fund Managers Limited
1,034,585$7.1m-22.29%0.08%

Company Information

Fresnillo plc's 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
  • Implied Market Cap: UK£5.086b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/23 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.