Education
About Us
Working with TipRanks
Follow Us
Glencore Plc (GLNCY)
OTHER OTC:GLNCY
Top Page
Glencore
(OTC:GLNCY)
Rating:68Neutral
Price Target:
$8.50
▲(1.67%Upside)
Glencore (GLNCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.07B
Dividend Yield2.1%
Average Volume (3M)778.03K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth6.24%
EPS Growth-139.16%
CountryUS
Employees84,146
SectorBasic Materials
Sector Strength73
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.18
Shares Outstanding5,964,945,300
10 Day Avg. Volume960,802
30 Day Avg. Volume778,028
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio4.58
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit16.47
Enterprise Value/Ebitda1.55
Forecast
1Y Price Target
$8.00Price Target Upside-4.31% Downside
Rating ConsensusHold
Number of Analyst Covering1
Glencore Business Overview & Revenue Model
Company DescriptionGlencore 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 MoneyGlencore generates revenue primarily through its three main business segments: metals and minerals, energy products, and agricultural products. In the metals and minerals segment, the company earns money by mining and selling commodities like copper, cobalt, zinc, and nickel. This segment also includes revenue from smelting and refining operations. The energy products segment encompasses Glencore's activities in the extraction, transportation, and marketing of oil and coal, contributing significantly to its earnings. The agricultural products segment, while smaller, involves trading and processing agricultural commodities such as grains, oils, and sugar. A key factor in Glencore's revenue generation is its global trading network, which allows it to leverage market opportunities and optimize supply chain efficiencies. Additionally, strategic partnerships and joint ventures with other companies enhance its capacity to produce and sell commodities at competitive prices.
Glencore Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q4-2024)
| % Change Since: -3.24%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance in the metals and marketing segments, with significant contributions from EVR and successful cost management in zinc. However, the overall adjusted EBITDA was down due to lower energy prices, and there were challenges in marketing debt and lease management. The company's proactive approach in managing supply and cash distribution is positive, but the pressures in energy coal and custom metallurgical business present challenges.Q4-2024 Updates
Positive Updates
Strong Adjusted EBITDA
Glencore finished the year with an adjusted EBITDA of $14.4 billion, with the industrial business contributing $10.6 billion, driven by strong metals performance.
Successful Integration of EVR
EVR contributed $1 billion to EBITDA in the second half of the year, with production up 8% and costs down 14% compared to the first half.
Strong Marketing Performance
Marketing EBIT was at the top end of the $2.2 billion to $3.2 billion guidance, totaling $3.2 billion, mainly driven by metals.
Cash Distribution and Buybacks
Announcement of a $1.2 billion cash distribution to shareholders and a $1 billion buyback to be completed by August 6.
Resilient Zinc Business
Zinc EBITDA improved with strong cost reductions and optimization, contributing $1.4 billion.
Negative Updates
Decline in Overall Adjusted EBITDA
Adjusted EBITDA was down 16%, mainly due to lower energy prices affecting the industrial segment.
Marketing Debt and Lease Challenges
Net debt finished at $11.2 billion, with movements in marketing leases and assumed debt from the EVR acquisition.
Challenges in Energy Coal
Energy coal volumes were slightly lower, and there are plans to address production cuts to balance the market.
Pressure on Custom Metallurgical Business
A $0.6 billion negative variation year-on-year was noted, affecting copper in North America and the European zinc portfolio.
Company Guidance
In the 2024 financial results call, Glencore reported a strong financial performance, achieving an adjusted EBITDA of $14.4 billion, with the industrial business contributing $10.6 billion, largely driven by the metals sector. The marketing segment also performed well, hitting the top end of its EBIT guidance range of $2.2 billion to $3.2 billion. The company maintained a net debt to adjusted EBITDA ratio below 0.8 and announced a cash distribution of $1.2 billion to shareholders, along with a $1 billion share buyback set to be completed by August 6. Glencore highlighted the successful integration of its new EVR business, which contributed $1 billion to EBITDA in the latter half of the year, and emphasized ongoing cost reduction initiatives, including a 14% decrease in FOB cash costs in the second half. The company also discussed its strategy regarding future copper projects, focusing on supply discipline and market conditions before advancing with expansions.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.65
Positive
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.70
Positive
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.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 230.94B | 217.83B | 255.98B | 203.75B | 142.34B |
| Gross Profit | 6.65B | 10.78B | 27.26B | 12.38B | 3.70B |
| EBITDA | 8.52B | 15.32B | 34.47B | 12.62B | 2.76B |
| Net Income | -1.63B | 4.28B | 17.32B | 4.97B | -1.90B |
Balance Sheet | |||||
| Total Assets | 130.46B | 123.87B | 132.58B | 127.51B | 118.00B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 1.93B | 1.97B | 2.69B | 1.42B |
| Total Debt | 38.11B | 32.24B | 28.78B | 34.64B | 37.48B |
| Total Liabilities | 94.80B | 85.63B | 87.36B | 90.59B | 83.60B |
| Stockholders Equity | 40.67B | 43.58B | 49.41B | 39.93B | 37.64B |
Cash Flow | |||||
| Free Cash Flow | 4.44B | 6.55B | 9.48B | 5.24B | -905.00M |
| Operating Cash Flow | 10.05B | 11.04B | 13.66B | 8.86B | 2.66B |
| Investing Cash Flow | -11.72B | -3.56B | -1.72B | -541.00M | -2.71B |
| Financing Cash Flow | 2.14B | -7.49B | -13.20B | -6.52B | -320.00M |
Glencore Technical Analysis
Positive
8.36
Price Trends
7.46
Positive
7.45
Positive
8.53
Negative
Market Momentum
0.20
Negative
62.74
Neutral
78.73
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 8.36 is above the 20-day moving average (MA) of 7.88, above the 50-day MA of 7.46, and below the 200-day MA of 8.53, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLNCY.
Glencore Risk Analysis
Glencore disclosed 11 risk factors in its most recent earnings report. Glencore reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Glencore Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $98.68B | 8.44 | 21.04% | 7.66% | -0.28% | 15.20% | |
76 Outperform | $126.48B | 11.50 | 26.13% | 3.97% | -3.15% | 54.08% | |
70 Neutral | $41.69B | 7.33 | 15.98% | 15.11% | -9.59% | -25.35% | |
68 Neutral | $48.07B | ― | -3.85% | 2.10% | 6.24% | -139.16% | |
62 Neutral | $10.21B | 10.03 | -0.16% | 2.84% | 2.22% | -32.59% | |
56 Neutral | $651.60M | ― | -16.64% | 2.06% | 12.30% | 42.72% | |
54 Neutral | $4.91B | ― | -9.62% | ― | 4.63% | -3189.81% |
* Basic Materials Sector Average
Performance Comparison
GLNCY
Glencore
8.36
-3.70
-30.68%
BHP
BHP Group
51.51
-5.02
-8.88%
RIO
Rio Tinto
60.10
-4.17
-6.49%
VALE
Vale SA
9.96
-0.72
-6.74%
NEXA
Nexa Resources SA
5.02
-2.60
-34.12%
MP
MP Materials
45.23
29.61
189.56%
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.