Commodity prices diverged in the quarter. Despite solid China steel production, iron ore and metallurgical coal prices are down, while copper rose on supply issues and hopes of faster global growth. However, prices are elevated compared with history and cost-curve support.
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) | 7.76 | 10.71 | 12.06 |
Price/Book Value | 2.72 | 3.48 | 2.65 |
Price/Sales | 2.78 | 2.61 | 2.62 |
Price/Cash Flow | 5.95 | 6.77 | 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
|
|---|---|---|---|---|---|
BHPLF
| BHP Group Ltd | WX | Nwdnw | $144.3 Bil | |
BHP
| BHP Group Ltd ADR | Bnthzlvfj | Tnn | $144.3 Bil | |
RTNTF
| Rio Tinto Ltd | — | Ydvt | $134.0 Bil | |
RIO
| Rio Tinto PLC ADR | Jvngjgghq | Kxdgk | $108.7 Bil | |
VALE
| Vale SA ADR | Kcdmh | Qlc | $50.3 Bil | |
NGLOY
| Anglo American PLC ADR | Dsqvvmrd | Qmqf | $36.1 Bil | |
TECK
| Teck Resources Ltd Class B (Sub Voting) | Wgybcqwq | Svjf | $24.4 Bil | |
LAC
| Lithium Americas Corp | Dmtzxxdb | Qhlcj | $1.1 Bil | |
LAAC
| Lithium Americas (Argentina) Corp | Pskjrxy | Hvgcnt | $818.0 Mil | |
CMP
| Compass Minerals International Inc | Wyjkbdts | Xxdwxn | $566.8 Mil |
