FIRST QUANTUM MINERALS LTD (FM.CA) Stock Fundamental Analysis
TSX:FM - Toronto Stock Exchange - CA3359341052 - Common Stock - Currency: CAD
Taking everything into account, FM scores 5 out of 10 in our fundamental rating. FM was compared to 822 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
In the past year FM has reported negative net income.
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
FM's Return On Assets of 0.01% is amongst the best of the industry. FM outperforms 85.58% of its industry peers.
FM has a better Return On Equity (0.02%) than 85.94% of its industry peers.
The Return On Invested Capital of FM (3.12%) is better than 90.67% of its industry peers.
FM had an Average Return On Invested Capital over the past 3 years of 4.33%. This is significantly below the industry average of 11.99%.
| 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
FM has a Profit Margin of 0.04%. This is amongst the best in the industry. FM outperforms 90.06% of its industry peers.
FM's Profit Margin has declined in the last couple of years.
The Operating Margin of FM (20.41%) is better than 93.70% of its industry peers.
FM's Operating Margin has improved in the last couple of years.
The Gross Margin of FM (28.11%) is better than 91.76% of its industry peers.
In the last couple of years the Gross Margin of FM has grown nicely.
| 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.
FM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FM has been increased compared to 5 years ago.
FM has a better debt/assets ratio than last year.
2.2 Solvency
FM has an Altman-Z score of 1.19. This is a bad value and indicates that FM is not financially healthy and even has some risk of bankruptcy.
FM's Altman-Z score of 1.19 is in line compared to the rest of the industry. FM outperforms 53.94% of its industry peers.
The Debt to FCF ratio of FM is 21.28, which is on the high side as it means it would take FM, 21.28 years of fcf income to pay off all of its debts.
FM has a better Debt to FCF ratio (21.28) than 89.94% 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 72.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 21.28 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.33
WACC9.36%
2.3 Liquidity
A Current Ratio of 2.08 indicates that FM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.08, FM is in line with its industry, outperforming 57.45% 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.
The Quick ratio of FM (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -110.53%.
The earnings per share for FM have been decreasing by -87.24% on average. This is quite bad
The Revenue for FM has decreased by -25.62% in the past year. This is quite bad
FM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)-110.53%
EPS 3Y-87.24%
EPS 5YN/A
EPS Q2Q%110.81%
Revenue 1Y (TTM)-25.62%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%3.12%
3.2 Future
FM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 189.67% yearly.
Based on estimates for the next years, FM will show a very strong growth in Revenue. The Revenue will grow by 22.99% on average per year.
EPS Next Y-125.06%
EPS Next 2Y369.26%
EPS Next 3Y265.94%
EPS Next 5Y189.67%
Revenue Next Year-1.93%
Revenue Next 2Y19.76%
Revenue Next 3Y26.14%
Revenue Next 5Y22.99%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for FM. In the last year negative earnings were reported.
Also next year FM is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
91.76% of the companies in the same industry are more expensive than FM, based on the Enterprise Value to EBITDA ratio.
FM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FM is cheaper than 92.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.47 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
FM has a very decent profitability rating, which may justify a higher PE ratio.
FM's earnings are expected to grow with 265.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y369.26%
EPS Next 3Y265.94%
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.
Compared to an average industry Dividend Yield of 7.60, FM pays a better dividend. On top of this FM pays more dividend than 97.82% of the companies listed in the same industry.
FM's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| 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 2Y369.26%
EPS Next 3Y265.94%
TSX:FM (3/7/2025, 7:00:00 PM)
17.86
-0.6 (-3.25%)
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 Cap14.90B
Analysts75.86
Price Target21.64 (21.16%)
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)578.29%
Min EPS beat(2)156%
Max EPS beat(2)1000.59%
EPS beat(4)3
Avg EPS beat(4)282.55%
Min EPS beat(4)-69.5%
Max EPS beat(4)1000.59%
EPS beat(8)4
Avg EPS beat(8)118.56%
EPS beat(12)6
Avg EPS beat(12)79.62%
EPS beat(16)8
Avg EPS beat(16)59.47%
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)0.27%
PT rev (3m)0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-288.41%
EPS NY rev (1m)-212.37%
EPS NY rev (3m)-126.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.94%
Revenue NY rev (1m)-4.17%
Revenue NY rev (3m)-11.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.16 | ||
| P/FCF | 28.47 | ||
| P/OCF | 6.29 | ||
| P/B | 0.91 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)-0.06
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)0.63
FCFY3.51%
OCF(TTM)2.84
OCFY15.89%
SpS8.25
BVpS19.71
TBVpS19.3
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 | 1.19 |
F-Score7
WACC9.36%
ROIC/WACC0.33
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)-110.53%
EPS 3Y-87.24%
EPS 5YN/A
EPS Q2Q%110.81%
EPS Next Y-125.06%
EPS Next 2Y369.26%
EPS Next 3Y265.94%
EPS Next 5Y189.67%
Revenue 1Y (TTM)-25.62%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%3.12%
Revenue Next Year-1.93%
Revenue Next 2Y19.76%
Revenue Next 3Y26.14%
Revenue Next 5Y22.99%
EBIT growth 1Y-11.87%
EBIT growth 3Y-25.89%
EBIT growth 5Y7.52%
EBIT Next Year157.29%
EBIT Next 3Y91.94%
EBIT Next 5Y64.2%
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%