LSE:FXPO

Stock Analysis Report

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Executive Summary

Ferrexpo plc mines for, develops, processes, produces, markets, exports, and sells iron ore pellets to the metallurgical industry. More Details


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-2.8%

FXPO

-3.7%

GB Metals and Mining

-1.7%

GB Market


1 Year Return

111.7%

FXPO

21.9%

GB Metals and Mining

-8.6%

GB Market

Return vs Industry: FXPO exceeded the UK Metals and Mining industry which returned 25.4% over the past year.

Return vs Market: FXPO exceeded the UK Market which returned -7.7% over the past year.


Shareholder returns

FXPOIndustryMarket
7 Day-2.8%-3.7%-1.7%
30 Day16.7%7.1%3.4%
90 Day93.8%32.3%14.5%
1 Year143.5%111.7%27.8%21.9%-4.9%-8.6%
3 Year45.6%6.6%46.6%22.8%3.7%-9.0%
5 Year2,741.4%1,873.7%374.5%261.9%47.1%13.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FXPO (£3.31) is trading below our estimate of fair value (£5.08)

Significantly Below Fair Value: FXPO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FXPO is good value based on its PE Ratio (6.9x) compared to the GB Metals and Mining industry average (15.4x).

PE vs Market: FXPO is good value based on its PE Ratio (6.9x) compared to the UK market (23x).


Price to Earnings Growth Ratio

PEG Ratio: FXPO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FXPO is good value based on its PB Ratio (2x) compared to the GB Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Ferrexpo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FXPO's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: FXPO's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: FXPO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FXPO's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: FXPO's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FXPO's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Ferrexpo performed over the past 5 years?

31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FXPO has high quality earnings.

Growing Profit Margin: FXPO's current net profit margins (25.6%) are lower than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: FXPO's earnings have grown significantly by 31.6% per year over the past 5 years.

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

Earnings vs Industry: FXPO had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-23.3%).


Return on Equity

High ROE: FXPO's Return on Equity (29%) is considered high.


Next Steps

Financial Health

How is Ferrexpo's financial position?


Financial Position Analysis

Short Term Liabilities: FXPO's short term assets ($511.9M) exceed its short term liabilities ($267.3M).

Long Term Liabilities: FXPO's short term assets ($511.9M) exceed its long term liabilities ($239.4M).


Debt to Equity History and Analysis

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

Reducing Debt: FXPO's debt to equity ratio has reduced from 240.4% to 25.3% over the past 5 years.

Debt Coverage: FXPO's debt is well covered by operating cash flow (142.1%).

Interest Coverage: FXPO's interest payments on its debt are well covered by EBIT (38.5x coverage).


Balance Sheet


Next Steps

Dividend

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

7.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FXPO's dividend (7.34%) is higher than the bottom 25% of dividend payers in the UK market (1.54%).

High Dividend: FXPO's dividend (7.34%) is in the top 25% of dividend payers in the UK market (4.54%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.2%), FXPO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FXPO's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Jim North

0.67

Tenure

Mr. James North, also known as Jim, serves as Executive Director at Ferrexpo Plc since July 6, 2020. He serves as the Group Chief Operating Officer of Ferrexpo Plc and as its Acting Chief Executive Officer...


Leadership Team

NamePositionTenureCompensationOwnership
James North
Group COO0.67yrno data0.046%
$ 888.5k
Roman Palyvoda
Acting Chief Financial Officer0.42yrno datano data
Ingrid McMahon
Head of Investor Relations & Corporate Communicationsno datano datano data
Brett Salt
Chief Marketing Officer0.50yrno datano data
Greg Nortje
Chief Human Resources Officer7yrsno data0.014%
$ 265.0k
Nikoley Kladiev
Chief Financial Officer of OJSC Ferrexpo Poltava Miningno datano data0.019%
$ 372.3k
Mark Gregory
Company Secretaryno datano datano data
Viktor Lotous
Head of Managing Board & COO13.75yrsUS$72.98k0.052%
$ 1.0m

0.7yrs

Average Tenure

47yo

Average Age

Experienced Management: FXPO's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James North
Group COO0.67yrno data0.046%
$ 888.5k
Kostyantin Zhevago
Non Independent Non Executive Director13.58yrsUS$373.43k50.38%
$ 978.8m
Raffaele Salvatore Genovese
Non-Executive Chairman of the Board0.42yrUS$88.00kno data
Vitaliy Lisovenko
Senior Independent Non-Executive Director1.42yrsUS$227.00kno data
Fiona MacAulay
Independent Non-Executive Director1.42yrsUS$46.00kno data
R. Dacomb
Independent Non-Executive Director1.58yrsUS$67.00kno data

1.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: FXPO's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FXPO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Ferrexpo plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ferrexpo plc
  • Ticker: FXPO
  • Exchange: LSE
  • Founded: 2005
  • Industry: Steel
  • Sector: Materials
  • Market Cap: UK£1.943b
  • Shares outstanding: 587.70m
  • Website: https://www.ferrexpo.com

Number of Employees


Location

  • Ferrexpo plc
  • Bahnhofstrasse 13
  • Baar
  • 6340
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FXPOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2007
FEXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
FEEX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
FXPOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2007

Biography

Ferrexpo plc mines for, develops, processes, produces, markets, exports, and sells iron ore pellets to the metallurgical industry. It operates two mines and a processing plant near Kremenchug in Ukraine; a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 01:08
End of Day Share Price2021/01/15 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.