Fortescue Ltd is an Australian company that has branched out from its origins in metals into green technology and energy. It operates through two main divisions: Metals and Energy. The Metals division handles everything from finding and digging up iron ore to processing and shipping it, and also looks for other types of minerals. On the other hand, the Energy division is focused on creating projects that produce green electricity, as well as green hydrogen and ammonia.
The company is investing in its iron ore business, notably through its Iron Bridge project and its stake in Gabon’s Belinga Iron Ore Project. Its operations are largely based in the Pilbara region’s Chichester, Solomon and Western hubs. These hubs are connected to Port Hedland’s shipping facilities, which include the Herb Elliott Port and the Judith Street Harbour towage facility. The Solomon Hub is also a significant part of its infrastructure, located in the mountain ranges near other major hubs.
Overview
Fortescue Ltd is an Australian resources company whose established iron ore business sits alongside a growing push into other minerals and green energy. Its scale is reflected in a supplied market capitalisation of A$49.8 billion and trailing revenue of A$17.0 billion. Revenue growth of 7.90% and a profit margin of 16.92% provide a snapshot of recent performance, while iron ore market exposure remains central to the investment story. At A$16.19, the shares are near their supplied 52-week low and trade below both the 50-day and 200-day moving averages.
Fortescue is a Perth-headquartered mining and resources company best known for exploring, developing, processing and selling iron ore in Australia and internationally, including to China. Its rail, port and power infrastructure supports the core operation. Alongside iron ore, the company is exploring for copper, lithium and rare earth elements and developing green energy, green hydrogen and related technologies. This mix gives investors exposure primarily to iron ore, with longer-term ambitions in other resources and lower-emissions energy.
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Key facts
- Ticker
- FMG
- Exchange
- AU
- ISIN
- AU000000FMG4
- Sector
- Basic Materials
- Industry
- Other Industrial Metals & Mining
- Country
- Australia
- Currency
- AUD
- Price
- A$16.19
- Previous close
- A$16.25
- Day change
- -A$0.06 (-0.37%)
- Market cap
- 49.8B
- 52W low
- A$16.14
- 52W high
- A$22.53
Price and trend
Last price: A$16.19
- Price
- A$16.19
- 52W range
- A$16.14 – A$22.53
- 50-day SMA
- A$17.50
- 200-day SMA
- A$19.86
- Price vs 50D SMA
- -7.46%
- Price vs 200D SMA
- -18.48%
Valuation
- P/E
- 12.17
- PEG
- 0.06
- EPS
- 1.33
- Dividend yield
- 4.60%
- Beta
- 0.76
At A$16.19, Fortescue has a supplied market capitalisation of A$49.8 billion and a price-to-earnings ratio of 12.17. The reported revenue growth of 7.90% and profit margin of 16.92% provide context for that valuation, while the 4.60% dividend yield adds an income component that can fluctuate. The valuation should be considered alongside the company’s exposure to iron ore markets and the share’s position near the lower end of its supplied 52-week range.
Profitability and growth
- Revenue growth
- 7.90%
- Revenue TTM
- 17.0B
- Profit margin
- 16.92%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
- Price
- A$16.19
- Target price
- A$17.49
- Target vs last price
- 8.03% from last price
The supplied target price is A$17.49, which is 8.03% above the last price of A$16.19. This is secondary context rather than a forecast: target prices are estimates and do not remove the uncertainty associated with iron ore markets or Fortescue’s business execution.
Risks
Fortescue’s earnings are exposed to iron ore markets and demand from customers including China, so changes in commodity prices or market conditions can affect revenue and profitability. Its exploration and green energy ambitions also involve execution and investment risks alongside its established mining business. The share price at A$16.19 is close to the supplied 52-week low of A$16.14 and below both its 50-day and 200-day moving averages, reflecting weak recent price context. The 4.60% dividend yield is not a fixed return and may change as company performance and dividend decisions change.
FAQ
What does Fortescue do?
Fortescue explores for, develops and sells iron ore, with operations and infrastructure including rail, port and power assets. It is also exploring copper, lithium and rare earths, and developing green energy, hydrogen and related technologies.
How has Fortescue’s revenue and profitability been reported?
The supplied figures show A$17.0 billion in trailing revenue, revenue growth of 7.90% and a profit margin of 16.92%.
What is Fortescue’s dividend profile?
The supplied dividend yield is 4.60%, with a dividend per share of A$0.747. Dividend payments can vary with earnings and company decisions.
How does FMG’s price compare with its recent range and moving averages?
At A$16.19, the share price is near the supplied 52-week low of A$16.14 and below the 52-week high of A$22.53. It is also 7.46% below its 50-day moving average and 18.48% below its 200-day moving average.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
Fortescue Metals Group Limited (ASX: FMG) Fundamentals
