Inclement weather and a train derailment meant no-moat Fortescue’s third-quarter fiscal 2024 was modestly behind our expectations. Shipments of 43 million metric tons were 7% down on the same quarter of fiscal 2023 and 11% below the prior quarter. Shipments for the first nine months of fiscal 2024 were 138 million metric tons, 4% down on last year, with a contribution from the new 69%-owned Iron Bridge mine remaining immaterial.
Fortescue provides strong leverage to the Chinese economy. If growth in steel consumption remains strong, it's also likely iron ore prices and volumes will, too.
We think that ultimately Chinese fixed-asset investment will slow, and future iron ore volume growth and prices are likely to be much less favorable.
|
Metric
|
FMG
|
BHP
|
RIO
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.91 | 10.75 | 12.05 |
Price/Book Value | 2.77 | 3.50 | 2.65 |
Price/Sales | 2.83 | 2.62 | 2.62 |
Price/Cash Flow | 6.07 | 6.80 | 8.56 |
|
Metric
|
FMG
|
BHP
|
RIO
|
|---|---|---|---|
Quick Ratio | 2.26 | 1.08 | 1.04 |
Current Ratio | 2.84 | 1.57 | 1.69 |
Interest Coverage | 24.66 | 7.59 | 8.04 |
|
Metric
|
FMG
|
BHP
|
RIO
|
|---|---|---|---|
Return on Assets (Normalized) | 22.58% | 13.90% | 11.84% |
Return on Equity (Normalized) | 35.67% | 31.67% | 22.48% |
Return on Invested Capital (Normalized) | 27.74% | 21.70% | 19.38% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BHP
| BHP Group Ltd ADR | Xxczwdbvy | Ljyvw | $148.8 Bil | |
BHPLF
| BHP Group Ltd | FRP | Rghhlh | $142.5 Bil | |
RTNTF
| Rio Tinto Ltd | — | Kmm | $136.3 Bil | |
RIO
| Rio Tinto PLC ADR | Dkggvlyjm | Mxdg | $110.7 Bil | |
VALE
| Vale SA ADR | Jrql | Wypy | $52.0 Bil | |
NGLOY
| Anglo American PLC ADR | Pjfpwmm | Ywqp | $44.2 Bil | |
TECK
| Teck Resources Ltd Class B (Sub Voting) | Nbqcnqq | Jvrf | $26.1 Bil | |
LAC
| Lithium Americas Corp | Hhzqftpy | Mfn | $1.0 Bil | |
LAAC
| Lithium Americas (Argentina) Corp | Tmndgdf | Dlktnjr | $781.1 Mil | |
CMP
| Compass Minerals International Inc | Qxqcjmwq | Dcydbtz | $538.7 Mil |
