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Fortescue Metals Group
(OTC:FSUGY)
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Rating:72Outperform
Price Target:
$28.00
▲(7.86% Upside)
Action:Reiterated
Date:05/15/26
Fortescue scores well primarily driven by its attractive valuation — a P/E of 5.84 and 4.81% dividend yield offer compelling value and income. Strong financial fundamentals including a conservative balance sheet, robust cash generation, and solid profitability margins even in a softer commodity environment further support the score. The main headwinds are declining revenue and margin compression reflecting cyclical pressures in iron ore markets, and significantly overbought technical conditions (RSI ~70, stochastic ~100) that elevate near-term pullback risk. Overall, Fortescue represents a quality cyclical value play with strong defensive characteristics, though investors should be mindful of short-term technical overextension.
Positive Factors
Integrated logistics and scale
Fortescue’s ownership of mines plus rail and port infrastructure creates durable vertical integration that lowers unit costs, improves shipment reliability and supports high-volume exports. This structural advantage underpins competitive positioning and long-term margin resilience across cycles.
Negative Factors
Slowing revenue growth
A deceleration in top-line growth signals potential demand or volume headwinds. Over the medium term this can pressure investment capacity and returns if volumes or market share do not recover, making sustained revenue expansion a key risk to future earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated logistics and scale
Fortescue’s ownership of mines plus rail and port infrastructure creates durable vertical integration that lowers unit costs, improves shipment reliability and supports high-volume exports. This structural advantage underpins competitive positioning and long-term margin resilience across cycles.
Read all positive factors
Fortescue Metals Group (FSUGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.65B
Dividend Yield6.36%
Average Volume (3M)676.00
Price to Earnings (P/E)10.2
Beta (1Y)1.27
Revenue Growth0.29%
EPS Growth-3.96%
CountryUS
Employees15,642
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)2.44
Shares Outstanding1,539,482,400
10 Day Avg. Volume0
30 Day Avg. Volume676
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)1.54
Price to Sales (P/S)1.99
P/FCF Ratio9.49
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fortescue Metals Group Business Overview & Revenue Model
Company Description
Fortescue Metals Group Limited is a global mining enterprise primarily engaged in the full lifecycle of iron ore, encompassing exploration, development, extraction, processing, and worldwide distribution, with a significant presence in Australia a...
How the Company Makes Money
Fortescue makes money predominantly by selling iron ore to customers, with revenues largely driven by seaborne iron ore exports. Its core revenue stream is the sale of iron ore products (including fines and lump) produced from its Pilbara mining o...
Fortescue Metals Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.36B | 15.42B | 18.11B | 16.66B | 17.31B | 22.43B |
| Gross Profit | 6.45B | 8.75B | 11.53B | 8.85B | 9.16B | 15.51B |
| EBITDA | 8.54B | 7.56B | 10.51B | 8.68B | 10.40B | 16.18B |
| Net Income | 3.74B | 3.37B | 5.68B | 4.80B | 6.20B | 10.29B |
Balance Sheet | ||||||
| Total Assets | 31.35B | 30.52B | 30.06B | 28.94B | 29.09B | 29.09B |
| Cash, Cash Equivalents and Short-Term Investments | 4.74B | 4.33B | 4.90B | 4.28B | 5.22B | 6.93B |
| Total Debt | 6.21B | 5.44B | 5.40B | 5.31B | 6.10B | 4.25B |
| Total Liabilities | 10.65B | 10.56B | 10.53B | 10.98B | 11.75B | 11.36B |
| Stockholders Equity | 20.74B | 19.98B | 19.55B | 17.95B | 17.33B | 17.73B |
Cash Flow | ||||||
| Free Cash Flow | 4.00B | 3.24B | 5.08B | 4.44B | 3.62B | 9.17B |
| Operating Cash Flow | 7.21B | 6.47B | 7.92B | 7.31B | 6.27B | 12.58B |
| Investing Cash Flow | -3.81B | -3.92B | -2.81B | -3.08B | -2.91B | -3.69B |
| Financing Cash Flow | -2.17B | -3.19B | -4.46B | -4.91B | -4.81B | -6.80B |
Fortescue Metals Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $165.41B | 12.99 | 18.86% | 4.41% | 14.26% | 17.02% | |
72 Outperform | $38.65B | 10.25 | 18.83% | 6.08% | 0.29% | -3.96% | |
71 Outperform | $57.11B | 27.38 | 5.76% | 5.23% | 12.55% | -60.45% | |
69 Neutral | $1.90B | 6.88 | 25.68% | 0.79% | 23.37% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $223.60B | 22.18 | 21.41% | 3.18% | 1.04% | -9.88% | |
54 Neutral | $10.42B | -171.18 | -2.66% | ― | 71.92% | 44.39% |
* Basic Materials Sector Average
FSUGY
Fortescue Metals Group
25.10
1.73
7.41%
BHP
BHP Group
89.09
37.65
73.18%
RIO
Rio Tinto
96.69
38.96
67.49%
VALE
Vale SA
13.68
4.62
51.04%
NEXA
Nexa Resources SA
13.49
8.69
181.04%
MP
MP Materials
56.67
-11.50
-16.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.