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Morningstar

Fortescue Metals Group Ltd FMG Stock Quote

Morningstar Rating
| Rating as of

XASX: FMG

Last close prices updated as of Feb 07, 2023, 4:10 PM EDT | AUD
  • Last Close 21.96
  • Sector Basic Materials
  • Industry Other Industrial Metals & Mining
  • Investment Style Large Value
  • Day Range 21.72  –  22.32
  • Year Range 14.50  –  22.99
  • Market Cap 67.8912 Bil
  • Volume / Avg 5.5 Mil /  7.8 Mil
  • Price / Sales 2.71
  • Price / Book 2.70
  • Forward Div Yield 11.02%
  • Trailing Div Yield 0.97%

Morningstar‘s Stock Analysis FMG

Valuation
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Is it the right time to buy or sell?
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Is it the right time to buy or sell?
Find out with Morningstar Investor

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Fortescue Reports a Strong Fiscal Q2 2023, Retaining FVE of AUD 15

Jon Mills Equity Analyst

Analyst Note

| Jon Mills |

We retain our AUD 15 fair value estimate for no-moat Fortescue, with shares trading at a 50% premium to fair value. We think this partly reflects current iron ore prices, which remain elevated compared to the cost curve, and which have risen recently due to expectations of rising demand from China as it reopens after abandoning its zero-COVID-19 policy. We also think enthusiasm over Fortescue’s bold green energy ambitions is another driver of the premium. Yet green energy is an expensive and capital-intensive space, so we remain more circumspect. In our view, iron ore will remain the main driver of Fortescue’s earnings for the foreseeable future.

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Key Statistics FMG

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Company Profile FMG

Business Description

Fortescue is an Australia-based iron ore miner. It has grown from obscurity start of 2008 to become the world's fourth-largest producer. Growth was fuelled by debt, now repaid. Expansion from 55 million metric tons in fiscal 2012 to about 185 million metric tons in 2022 means Fortescue supplies nearly 10% of global seaborne iron ore. Further expansion above 200 million metric tons is likely once it completes construction of its 22 million metric tons Iron Bridge magnetite mine. However, with longer-term demand likely to decline as China's economy matures, we expect Fortescue's future margins to be below historical averages. More recently, Fortescue diversified into green energy, with ambitions to become a major supplier of green hydrogen and green ammonia. Its efforts are early stage.

Contact
87 Adelaide Terrace, Level 2, East Perth
Perth, WA, 6004, AUS
Sector Basic Materials
Industry Other Industrial Metals & Mining
Employees 3,898

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Rally in Prices Not Ironclad

Temporary tightness should abate as demand falters and supply surges.
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Related News FMG

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FAQs for Fortescue Metals Group Ltd Stock

Yes. FMG has a forward dividend yield of 11.02%. See FMG’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

FMG’s market cap is 67.89 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

FMG’s stock style is Large Value.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

FMG’s price/sales is 2.71.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

FMG’s price/forward earnings is 9.07.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

FMG’s price/book is 2.70.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See FMG’s valuation ratios compared to the Market Index.

FMG’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare FMG’s historical performance against its industry peers and the overall market.