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Market Cap

UK£43.4b

Last Updated

2021/05/12 00:52 UTC

Data Sources

Company Financials +

Executive Summary

Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


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

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


Market Performance


7 Day Return

5.8%

GLEN

8.4%

GB Metals and Mining

2.4%

GB Market


1 Year Return

136.8%

GLEN

82.8%

GB Metals and Mining

25.6%

GB Market

Return vs Industry: GLEN exceeded the UK Metals and Mining industry which returned 82.8% over the past year.

Return vs Market: GLEN exceeded the UK Market which returned 25.6% over the past year.


Shareholder returns

GLENIndustryMarket
7 Day5.8%8.4%2.4%
30 Day14.6%14.5%3.4%
90 Day21.7%17.6%9.1%
1 Year140.4%136.8%92.2%82.8%31.1%25.6%
3 Year-8.0%-16.6%67.5%44.0%13.0%-0.03%
5 Year181.9%146.6%275.3%188.0%51.0%22.4%

Long-Term 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?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLEN (£3.28) is trading below our estimate of fair value (£4.81)

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


Price To Earnings Ratio

PE vs Industry: GLEN is unprofitable, so we can't compare its PE Ratio to the UK Metals and Mining industry average.

PE vs Market: GLEN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GLEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GLEN is good value based on its PB Ratio (1.6x) compared to the GB Metals and Mining industry average (2.2x).


Future Growth

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

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLEN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: GLEN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GLEN's is expected to become profitable in the next 3 years.

Revenue vs Market: GLEN's revenue (8.9% per year) is forecast to grow faster than the UK market (5.2% per year).

High Growth Revenue: GLEN's revenue (8.9% 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 (11%).


Past Performance

How has Glencore performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLEN is currently unprofitable.

Growing Profit Margin: GLEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GLEN is unprofitable, but has reduced losses over the past 5 years at a rate of 9.9% per year.

Accelerating Growth: Unable to compare GLEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GLEN is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.4%).


Return on Equity

High ROE: GLEN has a negative Return on Equity (-11.47%), as it is currently unprofitable.


Financial Health

How is Glencore's financial position?


Financial Position Analysis

Short Term Liabilities: GLEN's short term assets ($43.2B) exceed its short term liabilities ($39.4B).

Long Term Liabilities: GLEN's short term assets ($43.2B) do not cover its long term liabilities ($44.2B).


Debt to Equity History and Analysis

Debt Level: GLEN's debt to equity ratio (105%) is considered high.

Reducing Debt: GLEN's debt to equity ratio has reduced from 105.5% to 105% over the past 5 years.

Debt Coverage: GLEN's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: Insufficient data to determine if GLEN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLEN's dividend (2.59%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: GLEN's dividend (2.59%) is low compared to the top 25% of dividend payers in the UK market (4.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: GLEN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GLEN's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Ivan Glasenberg (63 yo)

19.33yrs

Tenure

US$1,508,000

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 ($USD1.51M) is below average for companies of similar size in the UK market ($USD3.62M).

Compensation vs Earnings: Ivan's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: GLEN's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: GLEN's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£43.425b
  • Shares outstanding: 13.24b
  • Website: https://www.glencore.com

Number of Employees


Location

  • Glencore plc
  • Baarermattstrasse 3
  • P.O. Box 1363
  • Baar
  • Zug
  • 6341
  • Switzerland

Listings


Biography

Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Mar...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/12 00:52
End of Day Share Price2021/05/11 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.