Glencore plc
Glencore plc Fundamental Analysis
Glencore plc (GLNCY) shows weak financial fundamentals with a PE ratio of 227.27, profit margin of 0.15%, and ROE of 0.94%. The company generates $244.5B in annual revenue with moderate year-over-year growth of 6.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GLNCY's fundamental strength across five key dimensions:
Efficiency Score
WeakGLNCY struggles to generate sufficient returns from assets.
Valuation Score
ModerateGLNCY shows balanced valuation metrics.
Growth Score
ModerateGLNCY shows steady but slowing expansion.
Financial Health Score
ModerateGLNCY shows balanced financial health with some risks.
Profitability Score
ModerateGLNCY maintains healthy but balanced margins.
Key Financial Metrics
Is GLNCY Expensive or Cheap?
P/E Ratio
GLNCY trades at 227.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLNCY's PEG of 1.93 indicates fair valuation.
Price to Book
The market values Glencore plc at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.30 times EBITDA. This is generally considered low.
How Well Does GLNCY Make Money?
Net Profit Margin
For every $100 in sales, Glencore plc keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 1.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.94 in profit for every $100 of shareholder equity.
ROA
Glencore plc generates $0.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Glencore plc generates limited operating cash flow of $5.93B, signaling weaker underlying cash strength.
Free Cash Flow
Glencore plc generates weak or negative free cash flow of $100.65M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
GLNCY converts 0.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
227.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GLNCY Stacks Against Its Sector Peers
| Metric | GLNCY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 227.27 | 27.01 | Worse (Expensive) |
| ROE | 0.94% | 949.00% | Weak |
| Net Margin | 0.15% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.10 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.06 | 4.42 | Neutral |
| ROA | 0.25% | -6411.00% (disorted) | Weak |
GLNCY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Glencore plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.89%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-355.44%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
29.71%
Industry Style: Cyclical, Commodity, Value
High Growth