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 Analysis

Adequate balance sheet 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.7%

GLEN

11.9%

GB Metals and Mining

6.2%

GB Market


1 Year Return

-61.0%

GLEN

-27.1%

GB Metals and Mining

-22.7%

GB Market

Return vs Industry: GLEN underperformed the UK Metals and Mining industry which returned -27.1% over the past year.

Return vs Market: GLEN underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

GLENIndustryMarket
7 Day3.7%11.9%6.2%
30 Day-35.8%-14.5%-17.8%
90 Day-47.8%-26.7%-27.7%
1 Year-58.7%-61.0%-21.3%-27.1%-18.6%-22.7%
3 Year-55.4%-60.4%6.4%-11.5%-13.4%-24.6%
5 Year-47.2%-55.8%41.4%7.3%1.3%-22.0%

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 (£1.24) is trading below our estimate of fair value (£4.75)

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 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 (0.5x) compared to the GB Metals and Mining industry average (0.8x).


Next Steps

Future Growth

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

40.1%

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 (0.5%).

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 (1.8% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: GLEN's revenue (1.8% 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 (6.9%).


Next Steps

Past Performance

How has Glencore performed over the past 5 years?

34.7%

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 34.7% 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 (7.2%).


Return on Equity

High ROE: GLEN has a negative Return on Equity (-3.84%), 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 ($41.8B) exceed its short term liabilities ($39.4B).

Long Term Liabilities: GLEN's short term assets ($41.8B) do not cover its long term liabilities ($45.4B).


Debt to Equity History and Analysis

Debt Level: GLEN's debt to equity ratio (90.3%) is considered high.

Reducing Debt: GLEN's debt to equity ratio has reduced from 102.3% to 90.3% over the past 5 years.


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).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GLEN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GLEN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 26.8% per year.


Next Steps

Dividend

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

12.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLEN's dividend (12.99%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: GLEN's dividend (12.99%) is in the top 25% of dividend payers in the UK market (7.3%)


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 9 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 (69.9% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Ivan Glasenberg (62yo)

18.17s

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 ($USD1.50M) is below average for companies of similar size in the UK market ($USD5.57M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ivan Glasenberg
CEO & Director18.17yrsUS$1.50m9.17% $1.5b
Steven Kalmin
Chief Financial Officer14.75yrsUS$242.00kno data
Martin Fewings
Head of Investor Relations & Communicationsno datano datano data
Shaun Teichner
General Counsel0.75yrno datano data
Giles Jones
Chief Risk Officer9yrsno datano data
Dawid Myburgh
Chief Geologistno datano datano data
Michael Fahrbach
Head of Sustainabilityno datano datano data
Shaun Blankfield
Head of Business Developmentno datano datano data
Peter Freyberg
Head of Industrial Assets1.25yrsno datano data
Gary Nagle
Head of Coal Assets1.25yrsno datano data

5.1yrs

Average Tenure

51yo

Average Age

Experienced Management: GLEN's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ivan Glasenberg
CEO & Director18.17yrsUS$1.50m9.17% $1.5b
Leonhard Fischer
Independent Non-Executive Director8.92yrsUS$280.00kno data
Martin Gilbert
Senior Independent Director1.83yrsUS$300.00k0.00038% $62.3k
John Mack
Independent Non-Executive Director6.75yrsUS$200.00k0.0057% $929.2k
Kalidas Madhavpeddi
Independent Non-Executive Director0.083yrno datano data
Anthony Hayward
Independent Non-Executive Chairman6.83yrsUS$1.15m0.0019% $303.2k
Peter Coates
Non-Executive Director8.92yrsUS$310.00k0.012% $2.0m
Gill Marcus
Independent Non-Executive Director2.17yrsUS$240.00kno data
Patrice Merrin
Independent Non-Executive Director5.75yrsUS$265.00k0.00033% $54.1k

6.8yrs

Average Tenure

64yo

Average Age

Experienced Board: GLEN's board of directors are considered experienced (6.8 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

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£16.388b
  • Shares outstanding: 13.22b
  • 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
8GCETLX (Eurotlx)YesOrdinary SharesITEURMay 2011
GLNC.YOTCPK (Pink Sheets LLC)UNSPON ADR EA REPR 2 ORDUSUSDJul 2011
8GCADB (Deutsche Boerse AG)UNSPON ADR EA REPR 2 ORDDEEURJul 2011
0IVWLSE (London Stock Exchange)UNSPON ADR EA REPR 2 ORDGBUSDJul 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 and Minerals, Energy Products, and Agricultural Products. The Metals and Minerals segment is involved in smelting, refining, mining, processing, and storing zinc, copper, lead, alumina, aluminum, ferroalloys, nickel, cobalt, and iron ore. The Energy Products segment activities include coal mining and oil production operations covering crude oil, oil products, steam coal, and metallurgical coal; and investments in ports, vessels, and storage facilities. The Agricultural Products segment engages in the storage, handling, processing, and port facilities of wheat, corn, canola, barley, rice, oil seeds, meals, edible oils, biofuels, cotton, and sugar. Glencore plc markets and delivers physical commodities sourced from third party producers and its production to industrial consumers in the automotive, steel, power generation, oil, semi-fabricator, and food processing industries. The company also provides financing, logistics, and other services to producers and consumers of commodities. It operates in the Americas, Europe, Asia, Africa, Oceania, and internationally. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 22:31
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.