Glencore PLC
GLEN: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 355.00 | Tvszx | Fprmsdfx |
Glencore's FVE Reduced by 6%; Shares Remain Undervalued
Business Strategy and Outlook
Glencore ranks among the most diversified of the large global miners. As China is the key demand driver for nearly everything Glencore mines, diversification benefits are limited. Glencore’s oil and agriculture businesses (held through its 50% stake in Viterra, which has agreed to merge with competitor Bunge, likely effective in 2024) are less China-centric but relatively small contributors, while its marketing business (roughly 20% of forecast midcycle group EBITDA from 2027) should be relatively resilient to changes in China’s rate of economic growth.