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Fortescue Metals Group Limited (FSUGY)
OTHER OTC:FSUGY
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Fortescue Metals Group (FSUGY) AI Stock Analysis

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FSUGY

Fortescue Metals Group

(OTC:FSUGY)

Rating:74Outperform
Price Target:
$28.00
▲(10.58% 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 (FSUGY) vs. SPDR S&P 500 ETF (SPY)

Fortescue Metals Group Business Overview & Revenue Model

Company DescriptionFortescue 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 MoneyFortescue 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
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue18.11B16.66B17.31B22.43B12.78B
Gross Profit11.53B8.85B9.16B15.51B8.42B
EBITDA10.51B8.68B10.40B16.18B8.15B
Net Income5.68B4.80B6.20B10.29B4.74B
Balance Sheet
Total Assets30.06B28.94B29.09B29.09B24.26B
Cash, Cash Equivalents and Short-Term Investments4.90B4.28B5.22B6.93B4.89B
Total Debt5.40B5.31B6.10B4.25B5.15B
Total Liabilities10.53B10.98B11.75B11.36B10.94B
Stockholders Equity19.55B17.95B17.33B17.73B13.32B
Cash Flow
Free Cash Flow5.08B4.44B3.62B9.17B4.59B
Operating Cash Flow7.92B7.31B6.27B12.58B6.60B
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 Price25.32
Price Trends
50DMA
22.58
Positive
100DMA
21.28
Positive
200DMA
21.87
Positive
Market Momentum
MACD
0.81
Positive
RSI
61.13
Neutral
STOCH
29.45
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 25.32 is above the 20-day moving average (MA) of 24.59, above the 50-day MA of 22.58, and above the 200-day MA of 21.87, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 29.45 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$137.94B15.7619.51%4.41%-7.86%14.17%
75
Outperform
$104.30B9.8718.18%5.94%-0.44%-4.20%
74
Outperform
$38.81B9.9920.20%7.28%-11.57%-32.19%
74
Outperform
$43.13B8.4013.49%7.92%-12.89%-46.86%
63
Neutral
$12.02B-9.57%39.42%-172.40%
61
Neutral
$10.29B6.410.58%2.90%3.32%-39.60%
50
Neutral
$658.22M-9.63%2.04%8.66%66.06%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSUGY
Fortescue Metals Group
25.32
2.59
11.39%
BHP
BHP Group
55.95
3.01
5.69%
RIO
Rio Tinto
62.69
2.64
4.40%
VALE
Vale SA
10.12
0.26
2.64%
NEXA
Nexa Resources SA
4.97
-1.32
-20.99%
MP
MP Materials
67.88
54.98
426.20%
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.Date of analysis: Jul 25, 2025