FIRST QUANTUM MINERALS LTD (FM.CA) Stock Fundamental Analysis
TSX:FM - Toronto Stock Exchange - CA3359341052 - Common Stock - Currency: CAD
FM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 799 industry peers in the Metals & Mining industry. FM scores excellent on profitability, but there are some minor concerns on its financial health. FM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FM had positive earnings in the past year.
In the past year FM had a positive cash flow from operations.
In multiple years FM reported negative net income over the last 5 years.
Each year in the past 5 years FM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.01%, FM belongs to the top of the industry, outperforming 84.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 0.02%, FM belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
FM's Return On Invested Capital of 3.12% is amongst the best of the industry. FM outperforms 90.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FM is significantly below the industry average of 24.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.02% | ||
| ROIC | 3.12% |
ROA(3y)0.04%
ROA(5y)0.53%
ROE(3y)0.06%
ROE(5y)1.29%
ROIC(3y)4.33%
ROIC(5y)4.7%
1.3 Margins
The Profit Margin of FM (0.04%) is better than 89.36% of its industry peers.
In the last couple of years the Profit Margin of FM has declined.
With an excellent Operating Margin value of 20.41%, FM belongs to the best of the industry, outperforming 93.12% of the companies in the same industry.
FM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.11%, FM belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
FM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.41% | ||
| PM (TTM) | 0.04% | ||
| GM | 28.11% |
OM growth 3Y-15.13%
OM growth 5Y4.01%
PM growth 3Y-84.66%
PM growth 5YN/A
GM growth 3Y-7.5%
GM growth 5Y7.67%
2. Health
2.1 Basic Checks
FM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FM has more shares outstanding
Compared to 5 years ago, FM has more shares outstanding
FM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that FM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, FM is in line with its industry, outperforming 51.69% of the companies in the same industry.
FM has a debt to FCF ratio of 21.28. This is a negative value and a sign of low solvency as FM would need 21.28 years to pay back of all of its debts.
FM has a Debt to FCF ratio of 21.28. This is amongst the best in the industry. FM outperforms 89.61% of its industry peers.
FM has a Debt/Equity ratio of 0.63. This is a neutral value indicating FM is somewhat dependend on debt financing.
The Debt to Equity ratio of FM (0.63) is worse than 73.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 21.28 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.35
WACC9.01%
2.3 Liquidity
FM has a Current Ratio of 2.08. This indicates that FM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.08, FM is in line with its industry, outperforming 56.32% of the companies in the same industry.
FM has a Quick Ratio of 1.08. This is a normal value and indicates that FM is financially healthy and should not expect problems in meeting its short term obligations.
FM has a Quick ratio of 1.08. This is comparable to the rest of the industry: FM outperforms 45.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 128.57%, which is quite impressive.
The earnings per share for FM have been decreasing by -87.24% on average. This is quite bad
FM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.62%.
Measured over the past years, FM shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
EPS 1Y (TTM)128.57%
EPS 3Y-87.24%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-25.62%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%14.86%
3.2 Future
Based on estimates for the next years, FM will show a very strong growth in Earnings Per Share. The EPS will grow by 96.84% on average per year.
FM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.38% yearly.
EPS Next Y-162.65%
EPS Next 2Y328.43%
EPS Next 3Y263.15%
EPS Next 5Y96.84%
Revenue Next Year-1.93%
Revenue Next 2Y19.76%
Revenue Next 3Y26.14%
Revenue Next 5Y10.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FM is valuated quite expensively with a Price/Earnings ratio of 87.14.
FM's Price/Earnings ratio is rather cheap when compared to the industry. FM is cheaper than 86.23% of the companies in the same industry.
FM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.79.
FM is valuated rather expensively with a Price/Forward Earnings ratio of 21.14.
FM's Price/Forward Earnings ratio is rather cheap when compared to the industry. FM is cheaper than 89.49% of the companies in the same industry.
FM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.14 | ||
| Fwd PE | 21.14 |
4.2 Price Multiples
90.86% of the companies in the same industry are more expensive than FM, based on the Enterprise Value to EBITDA ratio.
92.37% of the companies in the same industry are more expensive than FM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.61 | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
FM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FM's earnings are expected to grow with 263.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y328.43%
EPS Next 3Y263.15%
5. Dividend
5.1 Amount
FM has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
FM's Dividend Yield is rather good when compared to the industry average which is at 3.00. FM pays more dividend than 97.87% of the companies in the same industry.
FM's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
FM has been paying a dividend for at least 10 years, so it has a reliable track record.
As FM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
DP0%
EPS Next 2Y328.43%
EPS Next 3Y263.15%
TSX:FM (4/25/2025, 7:00:00 PM)
19.17
+0.08 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners51.56%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap15.99B
Analysts75.86
Price Target22.01 (14.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years2
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)516.5%
Min EPS beat(2)32.41%
Max EPS beat(2)1000.59%
EPS beat(4)3
Avg EPS beat(4)251.66%
Min EPS beat(4)-69.5%
Max EPS beat(4)1000.59%
EPS beat(8)4
Avg EPS beat(8)103.11%
EPS beat(12)6
Avg EPS beat(12)69.32%
EPS beat(16)8
Avg EPS beat(16)51.75%
Revenue beat(2)2
Avg Revenue beat(2)6.44%
Min Revenue beat(2)2.61%
Max Revenue beat(2)10.26%
Revenue beat(4)4
Avg Revenue beat(4)9.44%
Min Revenue beat(4)2.61%
Max Revenue beat(4)13.77%
Revenue beat(8)5
Avg Revenue beat(8)3.4%
Revenue beat(12)6
Avg Revenue beat(12)1.39%
Revenue beat(16)8
Avg Revenue beat(16)0.4%
PT rev (1m)1.71%
PT rev (3m)-0.79%
EPS NQ rev (1m)-27.98%
EPS NQ rev (3m)-340.52%
EPS NY rev (1m)-16.7%
EPS NY rev (3m)-131.01%
Revenue NQ rev (1m)-4.14%
Revenue NQ rev (3m)-10.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.14 | ||
| Fwd PE | 21.14 | ||
| P/S | 2.4 | ||
| P/FCF | 31.61 | ||
| P/OCF | 6.99 | ||
| P/B | 1.01 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)0.22
EY1.15%
EPS(NY)0.91
Fwd EY4.73%
FCF(TTM)0.61
FCFY3.16%
OCF(TTM)2.74
OCFY14.31%
SpS7.98
BVpS19.06
TBVpS18.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.02% | ||
| ROCE | 4.34% | ||
| ROIC | 3.12% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.28% | ||
| OM | 20.41% | ||
| PM (TTM) | 0.04% | ||
| GM | 28.11% | ||
| FCFM | 7.6% |
ROA(3y)0.04%
ROA(5y)0.53%
ROE(3y)0.06%
ROE(5y)1.29%
ROIC(3y)4.33%
ROIC(5y)4.7%
ROICexc(3y)4.6%
ROICexc(5y)5.02%
ROICexgc(3y)4.65%
ROICexgc(5y)5.07%
ROCE(3y)6.03%
ROCE(5y)6.54%
ROICexcg growth 3Y-25.91%
ROICexcg growth 5Y7.47%
ROICexc growth 3Y-25.91%
ROICexc growth 5Y7.47%
OM growth 3Y-15.13%
OM growth 5Y4.01%
PM growth 3Y-84.66%
PM growth 5YN/A
GM growth 3Y-7.5%
GM growth 5Y7.67%
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 21.28 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 203.16% | ||
| Cap/Sales | 26.78% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | 102.36% | ||
| Profit Quality | 18250% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.25 |
F-Score7
WACC9.01%
ROIC/WACC0.35
Cap/Depr(3y)138%
Cap/Depr(5y)109.78%
Cap/Sales(3y)20.74%
Cap/Sales(5y)17.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)128.57%
EPS 3Y-87.24%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y-162.65%
EPS Next 2Y328.43%
EPS Next 3Y263.15%
EPS Next 5Y96.84%
Revenue 1Y (TTM)-25.62%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%14.86%
Revenue Next Year-1.93%
Revenue Next 2Y19.76%
Revenue Next 3Y26.14%
Revenue Next 5Y10.38%
EBIT growth 1Y-11.87%
EBIT growth 3Y-25.89%
EBIT growth 5Y7.52%
EBIT Next Year99.86%
EBIT Next 3Y74.74%
EBIT Next 5Y33.27%
FCF growth 1Y187.4%
FCF growth 3Y-42.2%
FCF growth 5YN/A
OCF growth 1Y15.7%
OCF growth 3Y-16.98%
OCF growth 5Y13.18%