Is Fortescue overvalued?

Key points. The Fortescue Metals Group Limited (ASX: FMG) share price could be vastly overvalued and heading sharply lower. That’s the view of one leading broker which has reiterated its sell rating this morning.

Is Fortescue Metals Group a buy?

Assuming the 90 days trading horizon and your highly speculative risk level, our recommendation regarding Fortescue Metals Group is ‘Strong Sell’.

Is Fortescue undervalued?

Significantly Below Fair Value: FMG is trading below fair value, but not by a significant amount.

Does Fortescue have a future?

In October 2021, Fortescue Future Industries signed an agreement with JCB and Ryze Hydrogen to become the United Kingdom’s largest supplier of green hydrogen. JCB and Ryze will purchase 10% of FFI’s global green hydrogen production.

Is Fortescue a good share to buy?

Is the Fortescue share price a buy? Quite a few brokers actually think that the Fortescue share price is a sell. Credit Suisse rates it as ‘underperform’ with a price target of just $14 because of the valuation compared to its iron ore mining rivals like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

Why is Fortescue dividend so high?

You can see James’ holdings here. The Fortescue Metals Group Limited (ASX: FMG) dividend was among the most generous on the Australian share market in FY 2021. Thanks to sky high iron ore prices, the mining giant was generating significant free cash flow and returned the majority of it to shareholders.

Can FMG recover?

The Fortescue Metals Group Limited (ASX: FMG) share price has powered ahead in the last couple of months. At Wednesday’s closing bell, the mining outfit’s shares finished 1.49% lower to $20.44 apiece. This is a sharp recovery from when its shares were trading around the $14 mark in early November.

Is FMG a good company to invest?

Investors in Fortescue Metals Group (ASX:FMG) have made a enviable return of 409% over the past three years.

Why is Fortescue Metals dropping?

The good news for shareholders is that the weakness in the Fortescue share price today has nothing to do with the iron ore price or concerns over its Fortescue Future Industries (FFI) business. Rather, this weakness has been caused by the company’s shares trading ex-dividend this morning for its latest dividend.

What is going on with Fortescue?

Fortescue hits record shipments but COVID blows costs out Fortescue achieved record iron ore shipments but suffered a $421 million cost bump at its Ironbridge magnetite project with more inflation expected in the booming WA resource sector.

Why is FMG dividend so high?

Fortescue benefits from higher iron ore prices as it essentially flows straight to the net profit line of the business, after paying the government. The ASX mining share is committed to a high dividend payout ratio, so shareholders will likely see the benefits of higher profit in the next result with strong dividends.

Why is FMG stock dropping?

The Fortescue dividend Earlier this month when Fortescue released its half year results, the company reported a 28% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to US$4,762 million and a 32% reduction in underlying net profit after tax to US$2,779 million.