Glencore (GLNCY) AI Stock Analysis

• Market Cap: $56.45B
• Dividend Yield: 1.78%
• Average Volume (3M): 489.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 3.04%
• EPS Growth: -300.82%
• Country: US
• Employees: 84,146
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.01
• Shares Outstanding: 5,902,208,500
• 10 Day Avg. Volume: 452,333
• 30 Day Avg. Volume: 489,459
• PEG Ratio: 0.23
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 11.94
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 19.36
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: $9.30
• Price Target Upside: -2.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $10.00 ▲(4.38% Upside)

Glencore's overall stock score is driven by a strong earnings call performance and positive technical indicators, which are offset by challenges in financial performance and valuation concerns. The company's strategic initiatives in cost savings and shareholder returns are positive, but high leverage and profitability issues remain significant risks.

Glencore Business Overview & Revenue Model

Company Description

Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Marketing Activities and Industrial Activities. The company produces and markets copper, cobalt, nickel, zinc, lead, chrome ore, ferrochrome, vanadium, alumina, aluminum, tin, and iron ore. It also engages in the oil exploration/production, distribution, storage, and bunkering activities; and offers coal, crude oil and oil products, refined products, and natural gas. In addition, the company markets and distributes physical commodities sourced from third party producers and its production to industrial consumers in the battery, electronic, construction, automotive, steel, energy, and oil industries. Further, it provides financing, logistics, and other services to producers and consumers of commodities. The company was formerly known as Glencore Xstrata plc and changed its name to Glencore plc in May 2014. Glencore plc was founded in 1974 and is headquartered in Baar, Switzerland.

How the Company Makes Money

Glencore generates revenue through a diversified model that includes the sale of physical commodities, trading and marketing services, and production from its mining operations. The company's key revenue streams come from its mining and production of metals and minerals, which include copper, zinc, and nickel, as well as energy products like thermal and metallurgical coal. Additionally, Glencore engages in the trading of agricultural products, benefiting from its extensive logistics network to optimize supply chain efficiency. Significant partnerships with other companies, joint ventures, and strategic investments in mining operations further enhance its earnings capabilities. The company's trading arm also capitalizes on market fluctuations, allowing it to profit from the buying and selling of commodities, thus contributing to its overall financial performance.

Glencore Financial Statement Overview

Summary

Glencore faces challenges in profitability and leverage. Revenue and profit margins are under pressure, with significant fluctuations, particularly in recent years. The balance sheet reflects high leverage, posing potential risks, yet the asset base remains strong. Cash flow generation is a concern due to declining free cash flow and negative net income. Strategic improvements in cost management and debt reduction are recommended to enhance financial health and stability.

Income Statement

Glencore shows a mixed performance in its income statement. Gross profit margin has generally been low, with a significant decline in gross profit from 2022 to 2024, reflecting operational challenges. The net profit margin has been erratic, turning negative in 2024, highlighting profitability issues. Revenue showed a decline in 2024 relative to 2023, indicating potential challenges in sustaining sales growth. Despite these challenges, EBITDA margin has shown resilience in the past, although current EBIT is zero, reflecting operational cost pressures.

Balance Sheet

The balance sheet demonstrates moderate stability. The debt-to-equity ratio is relatively high, indicating significant leverage, which poses a risk in volatile market conditions. Return on equity has been inconsistent, with recent negative net income impacting overall returns. However, equity ratio remains stable, suggesting a balanced asset structure. The company's financial position is supported by a substantial asset base, although maintaining lower leverage would be beneficial.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow has declined from 2023 to 2024, which may constrain future investments. The operating cash flow to net income ratio is strong, suggesting operational efficiency, but this is offset by the negative net income in 2024. The free cash flow to net income ratio is also impacted by the negative earnings, highlighting challenges in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.25B	230.94B	217.83B	255.98B	203.75B	142.34B
Gross Profit	4.18B	6.65B	10.78B	27.52B	12.38B	3.70B
EBITDA	8.15B	8.52B	15.32B	29.71B	12.62B	2.76B
Net Income	-2.04B	-1.63B	4.28B	17.32B	4.97B	-1.90B
Balance Sheet
Total Assets	132.18B	130.46B	123.87B	132.58B	127.51B	118.00B
Cash, Cash Equivalents and Short-Term Investments	2.68B	2.17B	1.93B	1.92B	3.24B	1.50B
Total Debt	41.72B	38.11B	32.24B	28.78B	34.64B	37.48B
Total Liabilities	99.39B	94.80B	85.63B	87.36B	90.59B	83.60B
Stockholders Equity	37.83B	40.67B	43.58B	49.41B	39.93B	37.64B
Cash Flow
Free Cash Flow	474.59M	4.44B	6.55B	9.48B	5.24B	-905.00M
Operating Cash Flow	6.33B	10.05B	11.04B	13.66B	8.86B	2.66B
Investing Cash Flow	-12.98B	-11.72B	-3.56B	-1.72B	-541.00M	-2.71B
Financing Cash Flow	6.20B	2.14B	-7.49B	-13.20B	-6.52B	-320.00M

Glencore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.58
• 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 GLNCY, the sentiment is Positive. The current price of 9.58 is above the 20-day moving average (MA) of 9.34, above the 50-day MA of 8.72, and above the 200-day MA of 7.93, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 67.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLNCY.

Glencore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	―	$122.75B	11.29	18.18%	5.19%	-0.44%	-4.20%
BHP	―	$144.80B	16.07	19.51%	3.80%	-7.86%	14.17%
VALE	―	$51.82B	10.04	13.49%	6.63%	-12.89%	-46.86%
GLNCY	―	$56.45B	―	-5.21%	1.78%	3.04%	-300.82%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GSM	―	$905.14M	―	-12.38%	1.13%	-8.59%	-256.43%
NEXA	―	$769.47M	―	-9.63%	1.74%	8.66%	66.06%

Glencore Corporate Events

Glencore Reports 2025 Half-Year Financial Performance

Glencore, a leading global diversified natural resource company, is involved in the production, processing, and marketing of over 60 commodities that support decarbonization and meet current energy needs. With a strong presence in over 30 countries, Glencore serves industrial consumers across various sectors, including automotive, steel, and power generation.

Glencore’s Earnings Call: Strong Results Amid Challenges

Glencore’s recent earnings call painted a balanced picture of the company’s financial health and strategic initiatives. The company reported strong financial results and announced significant cost savings and shareholder returns. However, challenges such as declining coal prices, operational issues in copper production, and an increase in net debt were also highlighted.