Fortescue Metals Group (FSUGY) AI Stock Analysis

• Market Cap: $29.49B
• Dividend Yield: 6.21%
• Average Volume (3M): 2.37K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.28
• Revenue Growth: -11.89%
• EPS Growth: -32.44%
• Country: US
• Employees: 15,642
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): 2.53
• Shares Outstanding: 1,539,482,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,373
• PEG Ratio: -0.49
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.25
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 5.91
• Enterprise Value/Ebitda: 1.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $23.00 ▲(21.05%Upside)

Fortescue Metals Group's strong financial performance is the most significant factor in its overall score, supported by solid profitability, efficient cost management, and robust cash flow generation. The valuation is also favorable, with a low P/E ratio and a high dividend yield offering value and income potential to investors. Technical indicators suggest a stable stock trend with potential for short-term positive movement.

Fortescue Metals Group Business Overview & Revenue Model

Company Description

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It also explores for copper and gold deposits. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail, Kings Valley, and Queens Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Ecuador and Argentina. Further, it provides port towage services. Fortescue Metals Group Limited was incorporated in 1983 and is headquartered in East Perth, Australia.

How the Company Makes Money

Fortescue Metals Group makes money primarily through the extraction, processing, and sale of iron ore. The company operates extensive mining operations in the Pilbara region of Western Australia, where it owns and manages several large-scale mines. Fortescue's revenue model is centered around the production and export of iron ore to international markets, with a significant portion of its sales directed to China, the largest consumer of iron ore globally. The company benefits from long-term contracts and spot market sales, allowing it to capitalize on fluctuating iron ore prices. Additionally, Fortescue is expanding into the renewable energy sector through Fortescue Future Industries, aiming to develop green hydrogen projects and other sustainable energy initiatives, which may provide new revenue streams as the global demand for clean energy grows.

Fortescue Metals Group Financial Statement Overview

Summary

Fortescue Metals Group exhibits strong financial performance with healthy profitability and efficient cost management. The income statement shows robust margins, and the balance sheet reflects a strong equity position with low leverage. Cash flow is strong, with significant free cash flow generation.

Income Statement

Fortescue Metals Group shows strong income statement performance with healthy margins. The gross profit margin is approximately 52.1%, and the net profit margin stands at 31.4%, indicating efficient cost management and high profitability. The revenue growth rate from the previous year is 8.7%, demonstrating positive growth momentum. The EBIT margin is a robust 46.9%, and the EBITDA margin is 58.0%, reflecting strong operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with stockholders' equity accounting for approximately 65.0% of total assets, indicating a strong equity ratio. The debt-to-equity ratio is relatively low at 0.28, suggesting minimal leverage and financial stability. Return on equity is impressive at 29.1%, showcasing effective use of shareholder funds to generate profits.

Cash Flow

Cash flow analysis indicates robust free cash flow generation, with a growth rate of 14.4% from the previous year. The operating cash flow to net income ratio is 1.39, reflecting strong cash conversion from earnings. The free cash flow to net income ratio is 0.89, suggesting effective capital management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
16.35B	18.11B	16.66B	17.31B	22.43B	12.78B
	Gross Profit
7.09B	11.53B	8.85B	9.16B	15.51B	8.42B
	EBIT
6.01B	8.49B	7.91B	9.02B	15.09B	6.84B
	EBITDA
8.31B	10.51B	8.68B	10.40B	16.18B	8.15B
	Net Income Common Stockholders
3.89B	5.68B	4.80B	6.20B	10.29B	4.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.41B	4.90B	4.28B	5.22B	6.93B	4.89B
	Total Assets
29.22B	30.06B	28.94B	29.09B	29.09B	24.26B
	Total Debt
5.44B	5.40B	5.31B	6.10B	4.25B	5.15B
	Net Debt
2.03B	497.00M	1.03B	878.89M	-2.68B	259.65M
	Total Liabilities
10.03B	10.53B	10.98B	11.75B	11.36B	10.94B
	Stockholders Equity
19.22B	19.55B	17.95B	17.33B	17.73B	13.32B
Cash Flow		Free Cash Flow
3.30B	5.08B	4.44B	3.62B	9.17B	4.59B
	Operating Cash Flow
6.16B	7.92B	7.31B	6.27B	12.58B	6.60B
	Investing Cash Flow
-3.06B	-2.81B	-3.08B	-2.91B	-3.69B	-2.03B
	Financing Cash Flow
-4.38B	-4.46B	-4.91B	-4.81B	-6.80B	-1.29B

Fortescue Metals Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSUGY, the sentiment is Negative. The current price of 19 is below the 20-day moving average (MA) of 20.11, below the 50-day MA of 20.16, and below the 200-day MA of 22.17, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 6.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSUGY.

Fortescue Metals Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	77 Outperform	$95.01B	8.00	20.93%	7.90%	-0.81%	14.59%
FSUGY	75 Outperform	$29.49B	7.75	20.15%	6.21%	-11.89%	-32.44%
VALE	74 Outperform	$39.67B	6.84	15.98%	16.02%	-9.59%	-25.35%
BHP	72 Outperform	$118.96B	10.63	26.13%	4.14%	-3.15%	54.08%
MP	57 Neutral	$6.08B	―	-9.62%	―	4.63%	-3189.81%
NEXA	56 Neutral	$643.65M	―	-16.64%	2.08%	12.30%	42.72%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%