Fortescue Metals Group (FSUGY) AI Stock Analysis

• Market Cap: $45.98B
• Dividend Yield: 4.63%
• Average Volume (3M): 676.00
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.38
• Revenue Growth: -14.67%
• EPS Growth: -40.60%
• Country: US
• Employees: 15,642
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 1.18
• Shares Outstanding: 1,539,482,400
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 676
• PEG Ratio: -0.22
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 9.49
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 4.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $30.00 ▲(1.11% Upside)

Fortescue Metals Group's stock is supported by strong technical indicators and a solid valuation, with a reasonable P/E ratio and attractive dividend yield. While financial performance is robust, recent declines in revenue and free cash flow growth pose challenges. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Efficient Operations

Fortescue's focus on operational efficiency and innovation supports long-term cost management and competitive positioning in the iron ore market.

Stable Financial Position

A stable balance sheet with moderate leverage provides Fortescue with financial flexibility to invest in growth opportunities and manage economic fluctuations.

Strong Profit Margins

High profit margins reflect Fortescue's ability to maintain pricing power and cost efficiency, supporting long-term profitability and shareholder returns.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can impact Fortescue's ability to expand market share and invest in future projects, challenging long-term growth prospects.

Pressure on Profitability

Decreasing return on equity indicates potential challenges in maintaining profitability levels, which could affect investor confidence and capital allocation.

Free Cash Flow Decline

A decline in free cash flow growth limits Fortescue's ability to fund new projects and return capital to shareholders, potentially affecting long-term strategic initiatives.

Fortescue Metals Group Business Overview & Revenue Model

Company Description

Fortescue Metals Group (FSUGY) is an Australian iron ore mining company that is one of the largest iron ore producers in the world. Founded in 2003 and headquartered in Perth, the company operates in the mining and resources sector, specializing in the extraction, production, and exportation of iron ore. Fortescue's core products include high-grade iron ore, primarily shipped to customers in Asia, with a focus on the Chinese market. The company is known for its efficient operations, innovative technologies, and commitment to sustainable practices in mining.

How the Company Makes Money

Fortescue Metals Group generates revenue primarily through the sale of iron ore. The company's revenue model is heavily reliant on the global demand for iron ore, which is driven by the steel manufacturing industry, particularly in China. The company sells its products to a diverse range of customers, including major steel producers, and often enters into long-term contracts that provide stable revenue streams. Key revenue streams include the sale of iron ore fines and lump ore, which vary in pricing based on market demand, iron content, and global economic conditions. Additionally, Fortescue has made significant investments in infrastructure, including railways and port facilities, to enhance its operational efficiency and reduce costs. Partnerships with logistics and shipping companies also play a vital role in ensuring the timely delivery of products to customers, further contributing to its earnings.

Fortescue Metals Group Financial Statement Overview

Summary

Fortescue Metals Group demonstrates strong profitability and a stable financial position, with efficient cost management and a balanced capital structure. However, recent declines in revenue and free cash flow growth highlight potential challenges in sustaining growth momentum.

Income Statement

Fortescue Metals Group has shown strong profitability with a consistent gross profit margin above 50% and a net profit margin above 20% in recent years. However, the company experienced a decline in revenue growth rate in the latest period, indicating potential challenges in maintaining top-line growth. Despite this, the EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The company's balance sheet is stable with a moderate debt-to-equity ratio around 0.27, indicating a balanced approach to leverage. Return on equity has been strong, although it has decreased from previous highs, suggesting some pressure on profitability. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which could impact future investments and shareholder returns. However, the operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also healthy, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.54B	15.42B	18.11B	16.66B	17.31B	22.43B
Gross Profit	6.12B	8.75B	11.53B	8.85B	9.16B	15.51B
EBITDA	7.89B	7.56B	10.51B	8.68B	10.40B	16.18B
Net Income	3.37B	3.37B	5.68B	4.80B	6.20B	10.29B
Balance Sheet
Total Assets	30.52B	30.52B	30.06B	28.94B	29.09B	29.09B
Cash, Cash Equivalents and Short-Term Investments	4.33B	4.33B	4.90B	4.28B	5.22B	6.93B
Total Debt	5.44B	5.44B	5.40B	5.31B	6.10B	4.25B
Total Liabilities	10.56B	10.56B	10.53B	10.98B	11.75B	11.36B
Stockholders Equity	19.98B	19.98B	19.55B	17.95B	17.33B	17.73B
Cash Flow
Free Cash Flow	3.18B	3.24B	5.08B	4.44B	3.62B	9.17B
Operating Cash Flow	6.44B	6.47B	7.92B	7.31B	6.27B	12.58B
Investing Cash Flow	-3.92B	-3.92B	-2.81B	-3.08B	-2.91B	-3.69B
Financing Cash Flow	-3.15B	-3.19B	-4.46B	-4.91B	-4.81B	-6.80B

Fortescue Metals Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSUGY, the sentiment is Positive. The current price of 29.67 is above the 20-day moving average (MA) of 29.22, above the 50-day MA of 27.62, and above the 200-day MA of 23.04, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSUGY.

Fortescue Metals Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	80 Outperform	$136.53B	12.75	18.18%	4.60%	-0.44%	-4.20%
VALE	79 Outperform	$56.39B	10.42	13.65%	10.04%	-8.49%	-41.69%
FSUGY	78 Outperform	$45.98B	13.55	17.07%	4.63%	-14.67%	-40.60%
BHP	73 Outperform	$153.60B	17.21	19.51%	3.55%	-7.86%	14.17%
NEXA	65 Neutral	$1.17B	-72.65	-1.64%	1.14%	7.92%	91.83%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MP	61 Neutral	$9.64B	-77.20	-6.83%	―	26.44%	-95.87%

Fortescue Metals Group Corporate Events

Fortescue Metals Group Reports Strong FY25 Performance

Fortescue Metals Group is a leading Australian company in the mining sector, primarily focused on iron ore production and committed to accelerating global decarbonization through innovative technologies.