Fortescue Metals Group (FSUGY) AI Stock Analysis

• Market Cap: $37.99B
• Dividend Yield: 5.62%
• Average Volume (3M): 28.30K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.30
• 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: 12,165
• 30 Day Avg. Volume: 28,299
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 5.22
• Enterprise Value/Ebitda: 4.05
• 1Y Price Target: $27.00
• Price Target Upside: 9.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $27.00 ▲(9.31% Upside)

Fortescue Metals Group's overall stock score is driven by its strong financial performance and attractive valuation. The company's profitability and stable financial position are significant strengths, although recent declines in revenue and cash flow growth present challenges. The stock's valuation is compelling, with a low P/E ratio and high dividend yield, making it appealing to value and income investors. Technical analysis indicates moderate momentum, supporting a cautiously optimistic outlook.

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 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 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: 24.70
• 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 24.7 is above the 20-day moving average (MA) of 24.57, above the 50-day MA of 23.74, and above the 200-day MA of 21.37, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 22.91 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
VALE	78 Outperform	46.41B	9.00	17.53%	7.38%	-12.89%	-46.86%
BHP	77 Outperform	132.74B	14.70	18.89%	4.16%	-7.86%	14.17%
RIO	75 Outperform	105.55B	9.76	20.91%	5.97%	-0.44%	-4.20%
FSUGY	71 Outperform	$37.99B	11.32	17.07%	5.62%	-14.67%	-40.60%
MP	60 Neutral	12.97B	-118.31	-10.03%	―	39.42%	-172.40%
NEXA	48 Neutral	656.90M	-7.24	-10.19%	2.04%	8.66%	66.06%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%