LSE:GLEN

Stock Analysis Report

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Executive Summary

Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products. 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

-3.3%

GLEN

0.0008%

GB Metals and Mining

-0.1%

GB Market


1 Year Return

17.5%

GLEN

27.8%

GB Metals and Mining

-7.7%

GB Market

Return vs Industry: GLEN underperformed the UK Metals and Mining industry which returned 27.8% over the past year.

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


Shareholder returns

GLENIndustryMarket
7 Day-3.3%0.0008%-0.1%
30 Day14.5%8.4%4.1%
90 Day61.7%31.9%14.7%
1 Year17.5%17.5%34.0%27.8%-4.0%-7.7%
3 Year-25.4%-32.6%49.3%25.1%4.2%-8.5%
5 Year240.8%202.6%349.5%244.5%43.0%15.1%

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?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLEN (£2.77) is trading below our estimate of fair value (£4.28)

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 GB 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 (1.4x) compared to the GB Metals and Mining industry average (2.1x).


Next Steps

Future Growth

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

35.9%

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 (1%).

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 (8.5% per year) is forecast to grow faster than the UK market (6.6% per year).

High Growth Revenue: GLEN's revenue (8.5% 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 (8.6%).


Next Steps

Past Performance

How has Glencore performed over the past 5 years?

26.1%

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 26.1% 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 (-23.3%).


Return on Equity

High ROE: GLEN has a negative Return on Equity (-17.82%), as it is currently unprofitable.


Next Steps

Financial Health

How is Glencore's financial position?


Financial Position Analysis

Short Term Liabilities: GLEN's short term assets ($37.5B) do not cover its short term liabilities ($37.8B).

Long Term Liabilities: GLEN's short term assets ($37.5B) do not cover its long term liabilities ($41.3B).


Debt to Equity History and Analysis

Debt Level: GLEN's debt to equity ratio (112.8%) is considered high.

Reducing Debt: GLEN's debt to equity ratio has increased from 103.8% to 112.8% over the past 5 years.

Debt Coverage: GLEN's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: GLEN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GLEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GLEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GLEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GLEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GLEN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GLEN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Ivan Glasenberg (63 yo)

19yrs

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 ($USD1.50M) is below average for companies of similar size in the UK market ($USD3.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ivan Glasenberg
CEO & Director19yrsUS$1.50m9.17%
$ 3.4b
Steven Kalmin
Chief Financial Officer15.58yrsUS$400.89kno data
Martin Fewings
Head of Investor Relations & Communicationsno datano datano data
Shaun Teichner
General Counsel1.58yrsno datano data
Tor Peterson
Head of Coal Marketingno datano datano data
Giles Jones
Chief Risk Officer9.92yrsno datano data
Dawid Myburgh
Chief Geologistno datano datano data
Michael Fahrbach
Head of Sustainabilityno datano datano data
Kenny Ives
Head of Nickel Marketingno datano datano data
Shaun Blankfield
Head of Business Developmentno datano datano data
Peter Freyberg
Head of Industrial Assets2.08yrsno datano data
Gary Nagle
Global Head of Coal Assets2.08yrsno datano data

6.0yrs

Average Tenure

52yo

Average Age

Experienced Management: GLEN's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ivan Glasenberg
CEO & Director19yrsUS$1.50m9.17%
$ 3.4b
Martin Gilbert
Senior Independent Non-Executive Director2.67yrsUS$300.00k0.00038%
$ 138.9k
John Mack
Independent Non-Executive Director7.58yrsUS$200.00k0.0057%
$ 2.1m
Kalidas Madhavpeddi
Independent Non-Executive Director0.92yrno datano data
Anthony Hayward
Independent Non-Executive Chairman7.67yrsUS$1.15m0.0019%
$ 676.3k
Peter Coates
Non-Executive Director9.75yrsUS$310.00k0.013%
$ 4.6m
Gill Marcus
Independent Non-Executive Director3yrsUS$240.00kno data
Patrice Merrin
Independent Non-Executive Director6.58yrsUS$265.00k0.00045%
$ 164.5k

7.1yrs

Average Tenure

68yo

Average Age

Experienced Board: GLEN's board of directors are considered experienced (7.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GLEN 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£36.557b
  • Shares outstanding: 13.22b
  • Website: https://www.glencore.com

Number of Employees


Location

  • Glencore plc
  • Baarermattstrasse 3
  • Baar
  • Zug
  • 6340
  • 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
8GCETLX (Eurotlx)YesOrdinary SharesITEURMay 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 produces, refines, processes, stores, transports, and markets metals and minerals, and energy products. It operates in two segments, Marketing Activities and Industrial Activities. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 19:48
End of Day Share Price2021/01/22 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.