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Glencore

LSE:GLEN
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GLEN
LSE
£37B
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Glencore plc engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, energy products, and agricultural products. The last earnings update was 106 days ago. More info.


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  • Glencore has significant price volatility in the past 3 months.
GLEN Share Price and Events
7 Day Returns
4.3%
LSE:GLEN
5.7%
GB Metals and Mining
0.4%
GB Market
1 Year Returns
-28.7%
LSE:GLEN
2.1%
GB Metals and Mining
-3.7%
GB Market
GLEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Glencore (GLEN) 4.3% -2.9% -10.9% -28.7% 93.6% -17.1%
GB Metals and Mining 5.7% 6.3% 5.3% 2.1% 100.9% 30%
GB Market 0.4% 1% 1.6% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • GLEN underperformed the Metals and Mining industry which returned 2.1% over the past year.
  • GLEN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
GLEN
Industry
5yr Volatility vs Market

Value

 Is Glencore undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Glencore to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Glencore.

LSE:GLEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:GLEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.026 (1 + (1- 18%) (75.41%))
1.442
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.442 * 5.96%)
9.82%

Discounted Cash Flow Calculation for LSE:GLEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Glencore is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:GLEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.82%)
2019 6,101.24 Analyst x9 5,555.61
2020 7,287.09 Analyst x9 6,042.01
2021 8,793.94 Analyst x7 6,639.34
2022 14,314.00 Analyst x1 9,840.47
2023 17,236.88 Est @ 20.42% 10,790.15
2024 19,764.14 Est @ 14.66% 11,265.76
2025 21,865.35 Est @ 10.63% 11,348.87
2026 23,573.05 Est @ 7.81% 11,141.04
2027 24,948.58 Est @ 5.84% 10,736.67
2028 26,059.47 Est @ 4.45% 10,211.82
Present value of next 10 years cash flows $93,571.75
LSE:GLEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $26,059.47 × (1 + 1.23%) ÷ (9.82% – 1.23%)
$306,941.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $306,941.62 ÷ (1 + 9.82%)10
$120,279.98
LSE:GLEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $93,571.75 + $120,279.98
$213,851.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $213,851.72 / 13,558.14
$15.77
LSE:GLEN Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:GLEN)
0.793
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $15.77 x 0.793
£12.51
Value per share (GBP) From above. £12.51
Current discount Discount to share price of £2.72
= -1 x (£2.72 - £12.51) / £12.51
78.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Glencore is available for.
Intrinsic value
>50%
Share price is £2.72 vs Future cash flow value of £12.51
Current Discount Checks
For Glencore to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Glencore's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Glencore's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Glencore's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Glencore's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:GLEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.24
LSE:GLEN Share Price ** LSE (2019-06-14) in GBP £2.72
LSE:GLEN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.261 $3.43
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PE Ratio Median Figure of 37 Publicly-Listed Metals and Mining Companies 9.5x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Glencore.

LSE:GLEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:GLEN Share Price ÷ EPS (both in USD)

= 3.43 ÷ 0.24

14.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Glencore is overvalued based on earnings compared to the GB Metals and Mining industry average.
  • Glencore is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Glencore's expected growth come at a high price?
Raw Data
LSE:GLEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
10.2%per year
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PEG Ratio Median Figure of 29 Publicly-Listed Metals and Mining Companies 0.78x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:GLEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.24x ÷ 10.2%

1.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Glencore is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Glencore's assets?
Raw Data
LSE:GLEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.31
LSE:GLEN Share Price * LSE (2019-06-14) in GBP £2.72
LSE:GLEN Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.261 $3.43
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry PB Ratio Median Figure of 117 Publicly-Listed Metals and Mining Companies 0.94x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:GLEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:GLEN Share Price ÷ Book Value per Share (both in USD)

= 3.43 ÷ 3.31

1.04x

* Primary Listing of Glencore.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Glencore is overvalued based on assets compared to the GB Metals and Mining industry average.
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Value checks
We assess Glencore's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Glencore has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Glencore expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Glencore expected to grow at an attractive rate?
  • Glencore's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Glencore's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Glencore's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:GLEN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:GLEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 10.2%
LSE:GLEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 0.4%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 0.7%
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:GLEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:GLEN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 222,867 6,102 1
2022-12-31 226,342 15,228 4,693 2
2021-12-31 221,336 12,499 5,511 10
2020-12-31 217,475 11,804 5,322 14
2019-12-31 216,734 10,730 4,695 14
LSE:GLEN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 219,754 11,559 3,408
2018-09-30 216,749 8,303 4,756
2018-06-30 213,743 5,047 6,103
2018-03-31 209,610 4,932 5,940
2017-12-31 205,476 4,817 5,777
2017-09-30 194,643 5,527 3,942
2017-06-30 183,810 6,236 2,107
2017-03-31 168,379 5,535 682
2016-12-31 152,948 4,833 -744
2016-09-30 147,934 7,023 -2,790
2016-06-30 142,919 9,212 -4,836
2016-03-31 145,135 11,215 -5,028

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Glencore's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Glencore's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:GLEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Glencore Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GLEN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.72 0.72 0.72 1.00
2022-12-31 0.30 0.30 0.29 2.00
2021-12-31 0.42 0.50 0.31 12.00
2020-12-31 0.39 0.51 0.31 16.00
2019-12-31 0.35 0.44 0.28 16.00
LSE:GLEN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.24
2018-09-30 0.33
2018-06-30 0.43
2018-03-31 0.42
2017-12-31 0.41
2017-09-30 0.28
2017-06-30 0.15
2017-03-31 0.05
2016-12-31 -0.05
2016-09-30 -0.20
2016-06-30 -0.35
2016-03-31 -0.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Glencore is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Glencore's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Glencore has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Glencore performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Glencore's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Glencore has delivered over 20% year on year earnings growth in the past 5 years.
  • Glencore's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Glencore's 1-year earnings growth is negative, it can't be compared to the GB Metals and Mining industry average.
Earnings and Revenue History
Glencore's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Glencore Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:GLEN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 219,754.00 3,408.00 1,381.00
2018-09-30 216,748.50 4,755.50 1,426.00
2018-06-30 213,743.00 6,103.00 1,471.00
2018-03-31 209,609.50 5,940.00 1,390.50
2017-12-31 205,476.00 5,777.00 1,310.00
2017-09-30 194,643.00 3,942.00 1,261.50
2017-06-30 183,810.00 2,107.00 1,213.00
2017-03-31 168,379.00 681.50 1,157.50
2016-12-31 152,948.00 -744.00 1,102.00
2016-09-30 147,933.50 -2,790.00 1,094.50
2016-06-30 142,919.00 -4,836.00 1,087.00
2016-03-31 145,135.00 -5,028.00 1,091.50
2015-12-31 147,351.00 -5,220.00 1,096.00
2015-09-30 164,108.50 -2,708.50 1,119.00
2015-06-30 180,866.00 -197.00 1,142.00
2015-03-31 200,969.50 1,055.50 1,223.00
2014-12-31 221,073.00 2,308.00 1,304.00
2014-09-30 227,898.00 2,684.00 1,320.50
2014-06-30 234,723.00 3,060.00 1,337.00
2014-03-31 233,708.50 -2,493.00 1,271.50
2013-12-31 232,694.00 -8,046.00 1,206.00
2013-09-30 225,604.00 -9,351.50 1,157.00
2013-06-30 218,514.00 -10,657.00 1,108.00
2013-03-31 216,475.00 -4,826.50 1,052.50
2012-12-31 214,436.00 1,004.00 997.00
2012-09-30 208,212.50 2,426.50 937.50
2012-06-30 201,989.00 3,849.00 878.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Glencore has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Glencore used its assets less efficiently than the GB Metals and Mining industry average last year based on Return on Assets.
  • Glencore has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Glencore's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Glencore has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Glencore's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Glencore's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Glencore is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Glencore's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Glencore's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Glencore Company Filings, last reported 5 months ago.

LSE:GLEN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 45,383.00 35,063.00 2,080.00
2018-09-30 45,383.00 35,063.00 2,080.00
2018-06-30 47,476.00 33,166.00 2,217.00
2018-03-31 47,476.00 33,166.00 2,217.00
2017-12-31 49,455.00 33,987.00 2,207.00
2017-09-30 49,455.00 33,987.00 2,207.00
2017-06-30 44,141.00 30,446.00 2,116.00
2017-03-31 44,141.00 30,446.00 2,116.00
2016-12-31 43,781.00 33,261.00 2,642.00
2016-09-30 43,781.00 33,261.00 2,642.00
2016-06-30 41,039.00 38,590.00 2,577.00
2016-03-31 41,039.00 38,590.00 2,577.00
2015-12-31 41,343.00 44,189.00 3,042.00
2015-09-30 41,343.00 44,189.00 3,042.00
2015-06-30 48,348.00 50,664.00 3,223.00
2015-03-31 48,348.00 50,664.00 3,223.00
2014-12-31 51,480.00 53,152.00 3,128.00
2014-09-30 51,480.00 53,152.00 3,128.00
2014-06-30 53,156.00 57,859.00 3,567.00
2014-03-31 53,156.00 57,859.00 3,567.00
2013-12-31 52,681.00 55,405.00 3,196.00
2013-09-30 52,681.00 55,405.00 3,196.00
2013-06-30 53,473.00 54,537.00 4,226.00
2013-03-31 53,473.00 54,537.00 4,226.00
2012-12-31 34,173.00 38,175.00 2,928.00
2012-09-30 34,173.00 38,175.00 2,928.00
2012-06-30 34,848.00 29,312.00 6,823.00
  • Glencore's level of debt (77.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (105.2% vs 77.3% today).
  • Debt is well covered by operating cash flow (33%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Glencore's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Glencore has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.83%
Current annual income from Glencore dividends. Estimated to be 6.46% next year.
If you bought £2,000 of Glencore shares you are expected to receive £117 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Glencore's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Glencore's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Upcoming dividend payment

Purchase Glencore before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:GLEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 6.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:GLEN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.50 2.00
2022-12-31 0.25 5.00
2021-12-31 0.22 19.00
2020-12-31 0.21 22.00
2019-12-31 0.20 23.00
LSE:GLEN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-01 0.200 5.217
2019-02-20 0.200 4.963
2018-04-13 0.200 4.783
2017-02-23 0.070 1.565
2016-08-24 0.000 0.000
2015-09-07 0.000 0.000
2015-04-02 0.180 4.986
2014-08-26 0.171 3.606
2014-03-05 0.165 2.964
2013-06-05 0.158 3.170
2012-08-21 0.154 2.761
2012-04-10 0.200 3.665
2011-08-25 0.100 1.540
2011-06-14 0.000 0.000
2011-05-25 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Glencore has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Glencore only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Glencore's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Glencore's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Glencore afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Glencore has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ivan Glasenberg
COMPENSATION $1,503,000
AGE 61
TENURE AS CEO 17.4 years
CEO Bio

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 spent three years working in the coal commodity department in South Africa as a marketer, before spending two years in Australia as head of the Asian coal commodity division. Between 1988 and 1989, he was based in Hong Kong as Head of Glencore’s Hong Kong and Beijing offices, as well as Head of Coal Marketing in Asia. In January 1990, he was made responsible for the worldwide coal business of Glencore for both marketing and industrial assets and remained in this role until he became Chief Executive Officer in January 2002. He served as a Non-Executive Director of Rosneft Oil Company, PJSC since September 2017 until June 4, 2019. He was a Non-Executive Director of United Company Rusal plc since March 26, 2007 until April 10, 2018. Before joining Glencore, Mr. Glasenberg worked for five years at Levitt Kirson Chartered Accountants in South Africa. Mr. Glasenberg is a Chartered Accountant of South Africa and holds a Bachelor of Accountancy from the University of Witwatersrand in 1981. Mr. Glasenberg also holds an MBA from the University of Southern California in 1983.

CEO Compensation
  • Ivan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ivan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Glencore management team in years:

4.4
Average Tenure
50
Average Age
  • The tenure for the Glencore management team is about average.
Management Team

Ivan Glasenberg

TITLE
CEO & Director
COMPENSATION
$2M
AGE
61
TENURE
17.4 yrs

Steve Kalmin

TITLE
Chief Financial Officer
COMPENSATION
$242K
AGE
47
TENURE
14 yrs

Alex Beard

TITLE
Head of Oil

Giles Jones

TITLE
Chief Risk Officer
AGE
50
TENURE
8.3 yrs

Dawid Myburgh

TITLE
Chief Geologist

Michael Fahrbach

TITLE
Head of Sustainability

Shaun Blankfield

TITLE
Head of Business Development
AGE
36

Peter Freyberg

TITLE
Head of Industrial Mining Assets
AGE
59
TENURE
0.5 yrs

Gary Nagle

TITLE
Head of Coal Assets
TENURE
0.5 yrs

Japie Fullard

TITLE
Head of Ferroalloys Assets
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Glencore board of directors in years:

6
Average Tenure
66
Average Age
  • The tenure for the Glencore board of directors is about average.
Board of Directors

Tony Hayward

TITLE
Independent Non-Executive Chairman
AGE
60
TENURE
6.1 yrs

Ivan Glasenberg

TITLE
CEO & Director
COMPENSATION
$2M
AGE
61
TENURE
17.3 yrs

Peter Coates

TITLE
Non-Executive Director
AGE
72
TENURE
8.2 yrs

Leonhard Fischer

TITLE
Independent Non-Executive Director
AGE
55
TENURE
8.2 yrs

John Mack

TITLE
Independent Non-Executive Director
AGE
74
TENURE
6 yrs

Martin Gilbert

TITLE
Senior Independent Director
AGE
63
TENURE
1.1 yrs

Patrice Merrin

TITLE
Independent Non-Executive Director
AGE
69
TENURE
5 yrs

Gill Marcus

TITLE
Independent Non-Executive Director
AGE
69
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Glencore's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Glencore has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Note On Glencore Plc's (LON:GLEN) ROE and Debt To Equity

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Glencore has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Tempted To Buy Glencore Plc (LON:GLEN) Because Of Its PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While this makes GLEN appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Are Glencore Plc's (LON:GLEN) Interest Costs Too High?

Risk-averse investors who are attracted to diversified streams of revenue and strong capital returns tend to seek out these large companies. … the health of the financials determines whether the company continues to succeed. … This article will examine Glencore’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth.

Simply Wall St -

Three Stocks Trading At A Massive Discount

Undervalued companies, such as Glencore and Surgical Innovations Group, are those that trade at a price below their actual values. … GLEN's shares are currently hovering at around -53% below its value of $6.92, at a price tag of UK£3.26, according to my discounted cash flow model. … SUN's shares are now trading at -30% less than its intrinsic level of £0.04, at the market price of UK£0.029, according to my discounted cash flow model.

Simply Wall St -

What You Must Know About Glencore Plc's (LON:GLEN) Major Investors

In this analysis, my focus will be on developing a perspective on Glencore Plc’s (LON:GLEN) latest ownership structure, a less discussed, but important factor. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Therefore, it is beneficial for us to examine GLEN's ownership structure in more detail.

Simply Wall St -

Glencore Plc (LON:GLEN): What's The Analyst Consensus Outlook?

Glencore Plc's (LON:GLEN) most recent earnings update in December 2017 … finally turned profitable … negative earnings

Simply Wall St -

Why Glencore Plc (LON:GLEN) Is An Attractive Investment

Glencore Plc (LON:GLEN) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

Is There An Opportunity With Glencore Plc's (LON:GLEN) 42% Undervaluation?

I am going to run you through how I calculated the intrinsic value of Glencore Plc (LSE:GLEN) by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $5,832.97 $8,112.96 $7,391.49 $16,841.00 $17,153.00 Source Analyst x5 Analyst x6 Analyst x5 Analyst x1 Analyst x1 Present Value Discounted @ 12.4% $5,189.63 $6,422.01 $5,205.59 $10,552.42 $9,562.47 Present Value of 5-year Cash Flow (PVCF)= $36,932 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $17,153 × (1 + 1.5%) ÷ (12.4% – 1.5%) = $159,612 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $159,612 / ( 1 + 12.4%)5 = $88,981 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is £125,913.

Simply Wall St -

Did Glencore Plc (LON:GLEN) Create Value For Investors Over The Past Year?

Check out our latest analysis for Glencore Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Glencore’s profit against the level of its shareholders’ equity. … ROE can be split up into three useful ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:GLEN Last Perf Apr 30th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

What You Must Know About Glencore Plc's (LON:GLEN) Financial Strength

At this current level of debt, GLEN's cash and short-term investments stands at US$2.21B , ready to deploy into the business. … Moreover, GLEN has produced US$4.82B in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 14.17%, meaning that GLEN’s current level of operating cash is not high enough to cover debt. … Next Steps: GLEN’s cash flow coverage indicates it could improve its operating efficiency in order to meet demand for debt repayments should unforeseen events arise.

Simply Wall St -

Company Info

Description

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.

Details
Name: Glencore plc
GLEN
Exchange: LSE
Founded: 1974
£36,884,908,647
13,558,135,875
Website: http://www.glencore.com
Address: Glencore plc
Baarermattstrasse 3,
PO Box 777,
Baar,
Zug, 6341,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE GLEN Ordinary Shares London Stock Exchange GB GBP 19. May 2011
OTCPK GLCN.F Ordinary Shares Pink Sheets LLC US USD 19. May 2011
DB 8GC Ordinary Shares Deutsche Boerse AG DE EUR 19. May 2011
BMV GLEN N Ordinary Shares Bolsa Mexicana de Valores MX MXN 19. May 2011
JSE GLN Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 19. May 2011
BATS-CHIXE GLENL Ordinary Shares BATS 'Chi-X Europe' GB GBP 19. May 2011
OTCPK GLNC.Y UNSPONSORD ADR Pink Sheets LLC US USD 07. Jul 2011
DB 8GCA UNSPONSORD ADR Deutsche Boerse AG DE EUR 07. Jul 2011
LSE 0IVW UNSPONSORD ADR London Stock Exchange GB USD 07. Jul 2011
Number of employees
Current staff
Staff numbers
158,000
Glencore employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 21:38
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.