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Glencore PLC GLEN

Morningstar Rating
GBX 435.84 +7.09 (1.65%)
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Company Report

Mined Commodities Are Essential to the Economy, but Moats Are Rare

Demand growth from China has been the main driver of rising commodity prices in the past two decades. More recently, though, most commodity prices have fallen from highs set with Russia’s invasion of Ukraine, the subsequent sanctions on Russia, and the rerouting of supply chains. Prices, nevertheless, are generally elevated versus the 20-year average, as well as relative to cost support.

Price vs Fair Value

GLEN is trading at a 11% discount.
Price
GBX 423.60
Fair Value
GBX 633.00
Uncertainty
High
1-Star Price
GBX 594.64
5-Star Price
GBX 498.00
Economic Moat
Mrgp
Capital Allocation
Lvtmsjfss

Bulls Say, Bears Say

Bulls

Glencore's globe-spanning network of traders and logistics assets generates significant economies of scope.

Bears

Glencore's mining portfolio is overweight higher-risk countries with relatively underdeveloped institutions and limited legal safeguards for foreign investors.

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News

Trading Information

Previous Close Price
GBX 428.75
Day Range
GBX 431.23437.20
52-Week Range
GBX 365.31502.66
Bid/Ask
GBX 415.00 / GBX 438.00
Market Cap
GBX 5.30 Tril
Volume/Avg
23.7 Mil / 38.3 Mil

Key Statistics

Price/Earnings (Normalized)
8.92
Price/Sales
0.31
Dividend Yield (Trailing)
8.23%
Dividend Yield (Forward)
2.40%
Total Yield
13.90%

Company Profile

Glencore PLC is one of the world’s largest commodities traders, active in markets for metals and minerals, energy products, and agricultural goods. The firm's Marketing business provides sourcing, logistics, transportation, storage, and financing services to commodity producers and consumers around the globe. Core exposures are in the production of thermal coal, coking coal, copper, zinc, nickel, cobalt, and ferroalloys. Unlike other major miners, Glencore plans to produce thermal coal until its mines exhaust, arguing that it is better for listed, western companies to own these assets and then rehabilitate them consistent with western standards. It has also agreed to buy Teck's metallurgical coal business, with the deal likely closing in the third quarter of 2024.
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Stock Style Box
Large Value
Total Number of Employees
140,000

Competitors

Valuation

Metric
GLEN
NGLOY
TECK.B
Price/Earnings (Normalized)
8.9210.0911.55
Price/Book Value
1.531.311.14
Price/Sales
0.310.982.09
Price/Cash Flow
9.174.337.25
Price/Earnings
GLEN
NGLOY
TECK.B

Financial Strength

Metric
GLEN
NGLOY
TECK.B
Quick Ratio
0.351.060.50
Current Ratio
1.291.851.10
Interest Coverage
2.914.20
Quick Ratio
GLEN
NGLOY
TECK.B

Profitability

Metric
GLEN
NGLOY
TECK.B
Return on Assets (Normalized)
5.31%3.73%5.01%
Return on Equity (Normalized)
14.49%9.49%10.24%
Return on Invested Capital (Normalized)
11.14%6.06%7.11%
Return on Assets
GLEN
NGLOY
TECK.B
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LAAC
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