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 5 out of 10. The analysis compared the fundamentals against 802 industry peers in the Metals & Mining industry. FM scores excellent on profitability, but there are 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 was profitable.
FM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FM reported negative net income in multiple years.
FM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 0.57%, FM belongs to the best of the industry, outperforming 85.79% of the companies in the same industry.
FM's Return On Equity of 1.22% is amongst the best of the industry. FM outperforms 87.03% of its industry peers.
The Return On Invested Capital of FM (3.75%) is better than 91.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FM is significantly below the industry average of 24.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 1.22% | ||
| ROIC | 3.75% |
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
With an excellent Profit Margin value of 2.78%, FM belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
In the last couple of years the Profit Margin of FM has declined.
FM's Operating Margin of 23.63% is amongst the best of the industry. FM outperforms 94.02% of its industry peers.
FM's Operating Margin has improved in the last couple of years.
FM's Gross Margin of 30.77% is amongst the best of the industry. FM outperforms 91.52% of its industry peers.
In the last couple of years the Gross Margin of FM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.63% | ||
| PM (TTM) | 2.78% | ||
| GM | 30.77% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FM is destroying value.
Compared to 1 year ago, FM has more shares outstanding
The number of shares outstanding for FM has been increased compared to 5 years ago.
Compared to 1 year ago, FM has an improved debt to assets ratio.
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.
The Altman-Z score of FM (1.25) is comparable to the rest of the industry.
FM has a debt to FCF ratio of 66.92. This is a negative value and a sign of low solvency as FM would need 66.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 66.92, FM belongs to the top of the industry, outperforming 89.65% of the companies in the same industry.
FM has a Debt/Equity ratio of 0.65. This is a neutral value indicating FM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, FM is doing worse than 73.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 66.92 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.42
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.87 indicates that FM should not have too much problems paying its short term obligations.
FM has a Current ratio (1.87) which is in line with its industry peers.
A Quick Ratio of 0.94 indicates that FM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, FM is in line with its industry, outperforming 44.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.94 |
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.
Measured over the past years, FM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -87.24% on average per year.
FM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.48%.
FM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)128.57%
EPS 3Y-87.24%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%14.86%
3.2 Future
FM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 96.84% yearly.
Based on estimates for the next years, FM will show a quite strong growth in Revenue. The Revenue will grow by 10.38% on average per year.
EPS Next Y-162.65%
EPS Next 2Y328.43%
EPS Next 3Y263.15%
EPS Next 5Y96.84%
Revenue Next Year-3.31%
Revenue Next 2Y17.1%
Revenue Next 3Y23.82%
Revenue Next 5Y10.38%
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.
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
A Price/Earnings ratio of 85.55 indicates a quite expensive valuation of FM.
Compared to the rest of the industry, the Price/Earnings ratio of FM indicates a rather cheap valuation: FM is cheaper than 86.53% of the companies listed in the same industry.
FM is valuated expensively when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
FM is valuated rather expensively with a Price/Forward Earnings ratio of 20.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FM indicates a rather cheap valuation: FM is cheaper than 89.28% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FM to the average of the S&P500 Index (20.35), we can say FM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.55 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
FM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FM is cheaper than 91.52% of the companies in the same industry.
FM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FM is cheaper than 90.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.63 | ||
| EV/EBITDA | 10.29 |
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%.
Compared to an average industry Dividend Yield of 2.90, FM pays a better dividend. On top of this FM pays more dividend than 97.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, FM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
FM has paid a dividend for at least 10 years, which is a reliable track record.
FM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (5/7/2025, 7:00:00 PM)
18.82
-0.42 (-2.18%)
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 Cap15.70B
Analysts76.13
Price Target22 (16.9%)
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)66.2%
Min EPS beat(2)32.41%
Max EPS beat(2)100%
EPS beat(4)4
Avg EPS beat(4)294.03%
Min EPS beat(4)32.41%
Max EPS beat(4)1000.59%
EPS beat(8)5
Avg EPS beat(8)117.71%
EPS beat(12)6
Avg EPS beat(12)75.99%
EPS beat(16)8
Avg EPS beat(16)57.03%
Revenue beat(2)2
Avg Revenue beat(2)7.18%
Min Revenue beat(2)2.61%
Max Revenue beat(2)11.74%
Revenue beat(4)4
Avg Revenue beat(4)9.6%
Min Revenue beat(4)2.61%
Max Revenue beat(4)13.77%
Revenue beat(8)6
Avg Revenue beat(8)4.95%
Revenue beat(12)6
Avg Revenue beat(12)2.12%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)0.7%
PT rev (3m)1.95%
EPS NQ rev (1m)49.65%
EPS NQ rev (3m)36.84%
EPS NY rev (1m)-29.43%
EPS NY rev (3m)-231.14%
Revenue NQ rev (1m)-2.19%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-1.4%
Revenue NY rev (3m)-5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.55 | ||
| Fwd PE | 20.85 | ||
| P/S | 2.3 | ||
| P/FCF | 95.63 | ||
| P/OCF | 8.23 | ||
| P/B | 1 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)0.22
EY1.17%
EPS(NY)0.9
Fwd EY4.8%
FCF(TTM)0.2
FCFY1.05%
OCF(TTM)2.29
OCFY12.15%
SpS8.2
BVpS18.76
TBVpS18.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 1.22% | ||
| ROCE | 5.21% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 3.92% | ||
| OM | 23.63% | ||
| PM (TTM) | 2.78% | ||
| GM | 30.77% | ||
| FCFM | 2.4% |
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-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 66.92 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 199.06% | ||
| Cap/Sales | 25.5% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | 76.58% | ||
| Profit Quality | 86.23% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.25 |
F-Score6
WACC9.03%
ROIC/WACC0.42
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)-16.48%
Revenue growth 3Y-12.68%
Revenue growth 5Y3.38%
Sales Q2Q%14.86%
Revenue Next Year-3.31%
Revenue Next 2Y17.1%
Revenue Next 3Y23.82%
Revenue Next 5Y10.38%
EBIT growth 1Y27.14%
EBIT growth 3Y-25.89%
EBIT growth 5Y7.52%
EBIT Next Year99.86%
EBIT Next 3Y74.74%
EBIT Next 5Y33.27%
FCF growth 1Y-85.38%
FCF growth 3Y-42.2%
FCF growth 5YN/A
OCF growth 1Y-29.69%
OCF growth 3Y-16.98%
OCF growth 5Y13.18%