LSE:GLEN

Stock Analysis Report

Executive Summary

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, energy products, and agricultural products.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GLEN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

GLEN

0.9%

GB Metals and Mining

-0.4%

GB Market


1 Year Return

-18.3%

GLEN

4.9%

GB Metals and Mining

4.0%

GB Market

Return vs Industry: GLEN underperformed the UK Metals and Mining industry which returned 4.9% over the past year.

Return vs Market: GLEN underperformed the UK Market which returned 4% over the past year.


Shareholder returns

GLENIndustryMarket
7 Day0.1%0.9%-0.4%
30 Day4.0%3.9%1.5%
90 Day5.7%6.4%3.7%
1 Year-13.4%-18.3%13.9%4.9%9.4%4.0%
3 Year-4.7%-15.4%42.7%18.8%21.4%6.0%
5 Year-12.7%-26.9%60.2%23.1%33.0%2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLEN (£2.42) is trading below our estimate of fair value (£14.45)

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


Price To Earnings Ratio

PE vs Industry: GLEN is poor value based on its PE Ratio (50.5x) compared to the Metals and Mining industry average (9.3x).

PE vs Market: GLEN is poor value based on its PE Ratio (50.5x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: GLEN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GLEN is good value based on its PB Ratio (1x) compared to the GB Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Glencore forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

32.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLEN's forecast earnings growth (32.2% per year) is above the savings rate (1.2%).

Earnings vs Market: GLEN's earnings (32.2% per year) are forecast to grow faster than the UK market (12.5% per year).

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

Revenue vs Market: GLEN's revenue (0.05% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: GLEN's revenue (0.05% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLEN's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Glencore performed over the past 5 years?

29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLEN has large one-off items impacting its financial results.

Growing Profit Margin: GLEN's current net profit margins (0.4%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: GLEN has become profitable over the past 5 years, growing earnings by 29.1% per year.

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

Earnings vs Industry: GLEN had negative earnings growth (-85.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (2.2%).


Return on Equity

High ROE: GLEN's Return on Equity (-0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Glencore's financial position?


Financial Position Analysis

Short Term Liabilities: GLEN's short term assets ($41.7B) exceeds its short term liabilities ($39.6B)

Long Term Liabilities: GLEN's short term assets ($41.7B) do not cover its long term liabilities (46.0B)


Debt to Equity History and Analysis

Debt Level: GLEN's debt to equity ratio (82.7%) is considered high.

Reducing Debt: GLEN's debt to equity ratio has reduced from 108.1% to 82.7% over the past 5 years.

Debt Coverage: GLEN's debt is well covered by operating cash flow (32.8%).

Interest Coverage: GLEN's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: GLEN has a high level of physical assets or inventory.

Debt Coverage by Assets: GLEN's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Glencore's current dividend yield, its reliability and sustainability?

6.40%

Current Dividend Yield


Dividend Yield vs Market

company6.4%marketbottom25%2.0%markettop25%5.4%industryaverage7.4%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: GLEN's dividend (6.4%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: GLEN's dividend (6.4%) is in the top 25% of dividend payers in the UK market (5.37%)


Stability and Growth of Payments

Stable Dividend: GLEN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GLEN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (323.3%), GLEN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLEN's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

What is the CEO of Glencore's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Ivan Glasenberg (62yo)

17.8yrs

Tenure

US$1,503,000

Compensation

Mr. Ivan Glasenberg serves as the Chief Executive Officer of Glencore International AG since January 2002 and Glencore plc since 2011. Mr. Glasenberg joined Glencore in April 1984. Mr. Glasenberg initially ...


CEO Compensation Analysis

Compensation vs Market: Ivan's total compensation ($USD1.50M) is below average for companies of similar size in the UK market ($USD5.10M).

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


Management Age and Tenure

4.8yrs

Average Tenure

51yo

Average Age

Experienced Management: GLEN's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

67yo

Average Age

Experienced Board: GLEN's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

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.


Management Team

  • Ivan Glasenberg (62yo)

    CEO & Director

    • Tenure: 17.8yrs
    • Compensation: US$1.50m
  • Peter Freyberg (60yo)

    Head of Industrial Assets

    • Tenure: 0.9yrs
  • Martin Fewings

    Head of Investor Relations & Communications

    • Tenure: 0yrs
  • Steve Kalmin (48yo)

    Chief Financial Officer

    • Tenure: 14.4yrs
    • Compensation: US$242.00k
  • Giles Jones (51yo)

    Chief Risk Officer

    • Tenure: 8.8yrs
  • Dawid Myburgh

    Chief Geologist

    • Tenure: 0yrs
  • Michael Fahrbach

    Head of Sustainability

    • Tenure: 0yrs
  • Shaun Blankfield (37yo)

    Head of Business Development

    • Tenure: 0yrs
  • Gary Nagle

    Head of Coal Assets

    • Tenure: 0.9yrs
  • Shaun Teichner

    General Counsel

    • Tenure: 0.4yrs

Board Members

  • Leonhard Fischer (56yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
  • Martin Gilbert (64yo)

    Senior Independent Director

    • Tenure: 1.5yrs
  • John Mack (75yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
  • Ivan Glasenberg (62yo)

    CEO & Director

    • Tenure: 17.8yrs
    • Compensation: US$1.50m
  • Tony Hayward (61yo)

    Independent Non-Executive Chairman

    • Tenure: 6.5yrs
  • Peter Coates (73yo)

    Non-Executive Director

    • Tenure: 8.6yrs
  • Gill Marcus (70yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
  • Patrice Merrin (70yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs

Company Information

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


Key Information

  • Name: Glencore plc
  • Ticker: GLEN
  • Exchange: LSE
  • Founded: 1974
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: UK£32.039b
  • Shares outstanding: 13.24b
  • Website: https://www.glencore.com

Number of Employees


Location

  • Glencore plc
  • Baarermattstrasse 3
  • PO Box 777
  • Baar
  • Zug
  • 6341
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLENLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2011
8GCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2011
GLCN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2011
GLENLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2011
GLEN NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 2011
GLNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2011
GLNC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2011
8GCADB (Deutsche Boerse AG)UNSPONSORD ADRDEEURJul 2011
0IVWLSE (London Stock Exchange)UNSPONSORD ADRGBUSDJul 2011

Biography

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, energy products, and agricultural products. It operates in three segments: Metals a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 21:22
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.