Fortescue Metals Group (FSUGY) AI Stock Analysis

• Market Cap: $35.17B
• Dividend Yield: 8.06%
• Average Volume (3M): 7.08K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.28
• Revenue Growth: -11.89%
• EPS Growth: -32.44%
• Country: US
• Employees: 15,642
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Industrial Materials
• EPS (TTM): 2.53
• Shares Outstanding: 1,539,482,400
• 10 Day Avg. Volume: 7,612
• 30 Day Avg. Volume: 7,075
• PEG Ratio: -0.27
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.11
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 0.89
• 1Y Price Target: $23.00
• Price Target Upside: 0.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $28.00 ▲(22.38%Upside)

Fortescue Metals Group receives a strong overall score of 74.2, driven by excellent financial performance and attractive valuation metrics. The company's strong profitability, efficient cost management, and robust cash flows underpin its financial strength. Although technical indicators suggest overbought conditions, the stock's momentum remains positive. The absence of earnings call insights or corporate events does not affect the score due to their exclusion.

Fortescue Metals Group Business Overview & Revenue Model

Company Description

Fortescue Metals Group Ltd (FSUGY) is a prominent Australian iron ore company, recognized as one of the largest producers and exporters of iron ore globally. Headquartered in Perth, Western Australia, the company operates substantial operations in the Pilbara region of Western Australia. Fortescue's core business revolves around the exploration, development, production, processing, and sale of iron ore, which is a key raw material used in steelmaking. The company is committed to sustainable practices and innovation, with a focus on implementing advanced technology in mining operations.

How the Company Makes Money

Fortescue Metals Group generates revenue primarily through the extraction, production, and sale of iron ore. The company operates large-scale mining operations in Western Australia, where it extracts iron ore from its mines. This ore is then processed and shipped to customers, predominantly in Asia, with China being a significant market due to its high demand for steel production. Fortescue's revenue model is heavily reliant on the global demand for steel, as this drives the demand for iron ore. The company's earnings are also influenced by global iron ore prices, which can fluctuate based on market conditions. Fortescue has invested in infrastructure such as rail and port facilities to streamline its logistics and reduce costs, enhancing its competitive edge. Additionally, the company has been exploring renewable energy projects and green hydrogen initiatives, aiming to diversify its revenue streams and align with global sustainability trends.

Fortescue Metals Group Financial Statement Overview

Summary

Fortescue Metals Group demonstrates strong financial performance with high profitability, efficient cost management, and a solid equity position. The company benefits from a robust balance sheet with low leverage, impressive return on equity, and healthy cash flow generation. These factors position the company well for sustainable growth, although maintaining revenue growth and operational efficiencies remains important.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	18.11B	16.66B	17.31B	22.43B	12.78B
Gross Profit	11.53B	8.85B	9.16B	15.51B	8.42B
EBITDA	10.51B	8.68B	10.40B	16.18B	8.15B
Net Income	5.68B	4.80B	6.20B	10.29B	4.74B
Balance Sheet
Total Assets	30.06B	28.94B	29.09B	29.09B	24.26B
Cash, Cash Equivalents and Short-Term Investments	4.90B	4.28B	5.22B	6.93B	4.89B
Total Debt	5.40B	5.31B	6.10B	4.25B	5.15B
Total Liabilities	10.53B	10.98B	11.75B	11.36B	10.94B
Stockholders Equity	19.55B	17.95B	17.33B	17.73B	13.32B
Cash Flow
Free Cash Flow	5.08B	4.44B	3.62B	9.17B	4.59B
Operating Cash Flow	7.92B	7.31B	6.27B	12.58B	6.60B
Investing Cash Flow	-2.81B	-3.08B	-2.91B	-3.69B	-2.03B
Financing Cash Flow	-4.46B	-4.91B	-4.81B	-6.80B	-1.29B

Fortescue Metals Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 22.88 is above the 20-day moving average (MA) of 22.48, above the 50-day MA of 21.04, and above the 200-day MA of 21.91, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.34 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
BHP	76 Outperform	$128.11B	11.31	26.13%	4.86%	-3.15%	54.08%
RIO	75 Outperform	$101.07B	9.41	18.18%	6.73%	0.03%	-3.78%
FSUGY	74 Outperform	$35.17B	9.05	20.15%	8.06%	-11.89%	-32.44%
VALE	71 Outperform	$40.74B	7.01	13.49%	8.56%	-9.59%	-25.35%
MP	64 Neutral	$10.67B	―	-9.62%	―	4.63%	-3189.81%
Sector *	61 Neutral	$9.52B	9.43	-1.39%	3.00%	3.05%	-61.98%
NEXA	59 Neutral	$618.49M	―	-16.64%	2.17%	12.30%	42.72%