Fortescue Metals Group (FSUGY) AI Stock Analysis

• Market Cap: $30.39B
• Dividend Yield: 12.99%
• Average Volume (3M): 134.07K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.54
• Revenue Growth: -11.89%
• EPS Growth: -32.44%
• Country: US
• Employees: 3,898
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): 2.53
• Shares Outstanding: 1,539,482,400
• 10 Day Avg. Volume: 203,263
• 30 Day Avg. Volume: 134,072
• PEG Ratio: 0.36
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.75
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Fortescue Metals Group scores highly due to its strong financial performance, characterized by high profitability and robust balance sheet metrics, complemented by effective cash management. While the stock shows some technical weakness, its valuation metrics, including a low P/E ratio and high dividend yield, make it attractive. The absence of earnings call data and significant corporate events limits additional insights.

Fortescue Metals Group Business Overview & Revenue Model

Company Description

Fortescue Metals Group Ltd (FSUGY) is a leading global iron ore producer based in Australia. The company is engaged in the exploration, development, production, processing, and sale of iron ore, primarily from its assets in the Pilbara region of Western Australia. Fortescue is known for its integrated supply chain, from mining operations to shipping, and is a key player in the global iron ore market, supplying primarily to Asian markets, including China.

How the Company Makes Money

Fortescue Metals Group generates revenue primarily through the extraction and sale of iron ore. The company's business model focuses on large-scale production and cost-efficient mining operations, allowing it to deliver significant volumes of iron ore to the international market at competitive prices. Key revenue streams include sales contracts with steel producers, particularly in Asia, where the demand for iron ore is substantial due to industrial and infrastructure development. Fortescue benefits from strategic partnerships with shipping companies, ensuring efficient transportation of its products to global markets. The company's earnings are influenced by global iron ore prices, production volumes, and operational efficiency, as well as ongoing investments in technology and infrastructure to maintain and enhance production capabilities.

Fortescue Metals Group Financial Statement Overview

Summary

Fortescue Metals Group displays strong financial health with significant profitability margins and operational efficiency. The income statement shows positive revenue growth and impressive margins. The balance sheet is robust with high equity and low leverage, while cash flow analysis indicates strong cash conversion and effective capital management.

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	16.49B	22.43B	13.25B
	Gross Profit
9.44B	8.74B	9.16B	15.51B	7.24B
	EBIT
8.49B	7.91B	8.63B	15.25B	7.12B
	EBITDA
10.51B	8.91B	10.54B	16.25B	8.35B
	Net Income Common Stockholders
5.68B	4.80B	6.20B	10.29B	4.74B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.90B	4.28B	5.22B	6.93B	4.89B
	Total Assets
30.06B	28.94B	29.09B	29.09B	24.26B
	Total Debt
5.40B	5.31B	6.10B	4.25B	5.15B
	Net Debt
497.00M	1.03B	878.89M	-2.68B	259.65M
	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: Negative
• Last Price: 19.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSUGY, the sentiment is Negative. The current price of 19.73 is below the 20-day moving average (MA) of 21.81, below the 50-day MA of 22.28, and below the 200-day MA of 24.21, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 33.96 is Neutral, neither overbought nor oversold. The STOCH value of 0.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$126.53B	11.07	26.13%	5.83%	-3.15%	54.08%
VALE	75 Outperform	$40.01B	6.74	16.72%	9.94%	-8.71%	-22.75%
FSUGY	73 Outperform	$30.39B	7.91	20.15%	12.99%	-11.89%	-32.44%
NUE	72 Outperform	$29.21B	15.80	9.79%	1.71%	-11.46%	-53.33%
RIO	70 Outperform	$104.97B	8.74	20.93%	6.98%	-0.81%	14.59%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
CLF	44 Neutral	$4.33B	―	-10.36%	―	-12.78%	-301.57%