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GLEN

GlencoreLSE:GLEN Stock Report

Market Cap

UK£49.3b

7D

1.0%

1Y

75.5%

Updated

25 Nov, 2021

Data

Company Financials +
GLEN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends4/6

GLEN Stock Overview

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

Glencore Competitors

Rio Tinto Group

LSE:RIO

UK£78.2b

Anglo American

LSE:AAL

UK£35.2b

Mining and Metallurgical Company Norilsk Nickel

LSE:MNOD

US$45.2b

Reliance Industries

NSEI:RELIANCE

₹15.8t

Price History & Performance

Summary of all time highs, changes and price drops for Glencore
Historical stock prices
Current Share PriceUK£3.73
52 Week HighUK£3.98
52 Week LowUK£2.10
Beta1.62
1 Month Change0.70%
3 Month Change12.01%
1 Year Change75.54%
3 Year Change27.00%
5 Year Change31.37%
Change since IPO-29.72%

Recent News & Updates

Oct 21
An Intrinsic Calculation For Glencore plc (LON:GLEN) Suggests It's 38% Undervalued

An Intrinsic Calculation For Glencore plc (LON:GLEN) Suggests It's 38% Undervalued

Does the October share price for Glencore plc ( LON:GLEN ) reflect what it's really worth? Today, we will estimate the...

Oct 04
Here's Why Glencore (LON:GLEN) Can Manage Its Debt Responsibly

Here's Why Glencore (LON:GLEN) Can Manage Its Debt Responsibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

GLENGB Metals and MiningGB Market
7D1.0%1.1%-1.3%
1Y75.5%14.6%17.9%

Return vs Industry: GLEN exceeded the UK Metals and Mining industry which returned 14.9% over the past year.

Return vs Market: GLEN exceeded the UK Market which returned 14.8% over the past year.

Price Volatility

Is GLEN's price volatile compared to industry and market?
GLEN volatility
GLEN Average Weekly Movement3.8%
Metals and Mining Industry Average Movement7.1%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: GLEN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GLEN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1974135,000Gary Naglehttps://www.glencore.com

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, Marketing Activities and Industrial Activities. The company produces and markets copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore.

Glencore Fundamentals Summary

How do Glencore's earnings and revenue compare to its market cap?
GLEN fundamental statistics
Market CapUS$65.68b
Earnings (TTM)US$1.97b
Revenue (TTM)US$165.18b

33.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GLEN income statement (TTM)
RevenueUS$165.18b
Cost of RevenueUS$158.50b
Gross ProfitUS$6.69b
ExpensesUS$4.71b
EarningsUS$1.97b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin4.05%
Net Profit Margin1.20%
Debt/Equity Ratio95.3%

How did GLEN perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

80%

Payout Ratio

Valuation

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

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLEN (£3.73) is trading below our estimate of fair value (£5.99)

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 (33x) compared to the UK Metals and Mining industry average (8.1x).

PE vs Market: GLEN is poor value based on its PE Ratio (33x) compared to the UK market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: GLEN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GLEN's PB Ratio (1.7x) is in line with the GB Metals and Mining industry average.


Future Growth

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

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLEN's earnings are forecast to decline over the next 3 years (-3.9% per year).

Earnings vs Market: GLEN's earnings are forecast to decline over the next 3 years (-3.9% per year).

High Growth Earnings: GLEN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GLEN's revenue (1.9% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: GLEN's revenue (1.9% 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 (15%).


Past Performance

How has Glencore performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLEN has a large one-off loss of $1.3B impacting its June 30 2021 financial results.

Growing Profit Margin: GLEN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GLEN has become profitable over the past 5 years, growing earnings by -10.5% per year.

Accelerating Growth: GLEN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GLEN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (150.4%).


Return on Equity

High ROE: GLEN's Return on Equity (4.4%) is considered low.


Financial Health

How is Glencore's financial position?


Financial Position Analysis

Short Term Liabilities: GLEN's short term assets ($49.0B) exceed its short term liabilities ($45.4B).

Long Term Liabilities: GLEN's short term assets ($49.0B) exceed its long term liabilities ($42.1B).


Debt to Equity History and Analysis

Debt Level: GLEN's net debt to equity ratio (87.9%) is considered high.

Reducing Debt: GLEN's debt to equity ratio has increased from 92.7% to 95.3% over the past 5 years.

Debt Coverage: GLEN's debt is well covered by operating cash flow (25.1%).

Interest Coverage: GLEN's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

2.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLEN's dividend (2.42%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: GLEN's dividend (2.42%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


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: At its current payout ratio (80.1%), GLEN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLEN's dividends in 3 years are forecast to be covered by earnings (67.3% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Gary Nagle (46 yo)

0.33

Tenure

Mr. Gary Nagle serves as Chief Executive Officer and Director at Glencore Plc since July 1, 2021. He served as the Chief Executive Officer of Glencore Xstrata's Alloys Division. He had been Global Head of...


Leadership Team

Experienced Management: GLEN's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: GLEN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 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£49.292b
  • Shares outstanding: 13.13b
  • Website: https://www.glencore.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/25 21:42
End of Day Share Price2021/11/25 00:00
Earnings2021/06/30
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.