How to buy Fortescue Metals Group shares

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Fortescue Metals Group Limited is an other industrial metals & mining business based in Australia. Fortescue Metals Group shares (FMG) are listed on the Australian Securities Exchange (ASX) and all prices are listed in Australian Dollars. Fortescue Metals Group has a trailing 12-month revenue of around $12.8 billion..

How to buy shares in Fortescue Metals Group

  1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
  3. Search for Fortescue Metals Group. Find the share by name or ticker symbol: FMG. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Fortescue Metals Group reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At today's price of $16.79, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  6. Check in on your investment. Congratulations, you own a part of Fortescue Metals Group. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

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How has coronavirus impacted Fortescue Metals Group's share price?

Since the stock market crash in March caused by coronavirus, Fortescue Metals Group's share price has had significant positive movement.

Its last market close was $16.79, which is 33.29% up on its pre-crash value of $11.2 and 104.76% up on the lowest point reached during the March crash when the shares fell as low as $8.2.

If you had bought $1,000 worth of Fortescue Metals Group shares at the start of February 2020, those shares would have been worth $868.19 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,526.38.

Fortescue Metals Group share price

Use our graph to track the performance of FMG stocks over time.

Fortescue Metals Group shares at a glance

Information last updated 2021-01-14.
52-week range$7.7655 - $26.4
50-day moving average $22.4427
200-day moving average $18.1777
Target price$3.43
PE ratio 16.1619
Dividend yield $1.76 (7.11%)
Earnings per share (TTM) $1.532

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IG Share Trading Offer

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Standard brokerage - Australian shares

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Competitive broker fees on Australian and international shares

  • Brokerage - AU shares: From AUD 5 or 0.05%
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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
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Name Product Standard brokerage fee Inactivity fee Markets
IG Share Trading
Finder Award
IG Share Trading
AUD 8 or 0.1%
AUD 50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares, Forex, CFDs, Margin trading
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, forex and CFDs, plus get access to 24-hour customer support.
Bell Direct Share Trading
AUD 15 or 0.1%
No
ASX shares, mFunds
Invest in Australian shares, options and managed funds from the one account with no inactivity fee.
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
Superhero share trading
AUD 5
No
ASX shares
Pay zero brokerage on all Australian ETFs.
Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.
CMC Markets Stockbroking
AUD 11 or 0.1%
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, mFunds
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, managed funds, forex, commodities and cryptocurrencies, plus access up to 15 major global and Australian stock exchanges.
ANZ Share Investing
AUD 19.95
No
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Earn 1 Qantas Point per AU$3 spent on brokerage fees on certain instruments.
Access Morningstar reports, company announcements and and live pricing via ANZ’s share investing platform. Available for desktop and mobile.
Westpac Online Investing Account
AUD 19.95 or 0.11%
AUD 63.50 per year on the global markets account
ASX shares, Global shares, Options trading, US shares
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Is it a good time to buy Fortescue Metals Group stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Fortescue Metals Group price performance over time

Historical closes compared with the close of A$16.79 on 2020-10-22

1 week (2021-01-12) -33.19%
1 month (2020-12-18) -26.71%
3 months (2020-10-19) -0.18%
6 months (2020-07-17) 2.44%
1 year (2020-01-17) 47.15%
2 years (2019-01-18) 262.63%
3 years (2018-01-19) 227.93%
5 years (2016-01-19) 997.39%

Is Fortescue Metals Group under- or over-valued?

Valuing Fortescue Metals Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Fortescue Metals Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Fortescue Metals Group's P/E ratio

Fortescue Metals Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 16x. In other words, Fortescue Metals Group shares trade at around 16x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Fortescue Metals Group's EBITDA

Fortescue Metals Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $8.2 billion (£4.6 billion).

The EBITDA is a measure of a Fortescue Metals Group's overall financial performance and is widely used to measure a its profitability.

Fortescue Metals Group financials

Revenue TTM $12.8 billion
Operating margin TTM 53.7%
Gross profit TTM $7.1 billion
Return on assets TTM 19.97%
Return on equity TTM 39.72%
Profit margin 36.93%
Book value 4.299
Market capitalisation $76.2 billion

TTM: trailing 12 months

Fortescue Metals Group's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Fortescue Metals Group.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Fortescue Metals Group's total ESG risk score

Total ESG risk: 27.89

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Fortescue Metals Group's overall score of 27.89 (as at 01/01/2019) is nothing to write home about – landing it in it in the 51st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Fortescue Metals Group is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Fortescue Metals Group's environmental score

Environmental score: 14.49/100

Fortescue Metals Group's environmental score of 14.49 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Fortescue Metals Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Fortescue Metals Group's social score

Social score: 7.58/100

Fortescue Metals Group's social score of 7.58 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Fortescue Metals Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Fortescue Metals Group's governance score

Governance score: 10.82/100

Fortescue Metals Group's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Fortescue Metals Group is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Fortescue Metals Group's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Fortescue Metals Group scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Fortescue Metals Group has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Fortescue Metals Group Limited was last rated for ESG on: 2019-01-01.

Total ESG score 27.89
Total ESG percentile 50.54
Environmental score 14.49
Environmental score percentile 5
Social score 7.58
Social score percentile 5
Governance score 10.82
Governance score percentile 5
Level of controversy 2

Fortescue Metals Group share dividends

45%

Dividend payout ratio: 44.8% of net profits

Recently Fortescue Metals Group has paid out, on average, around 44.8% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 7.11% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Fortescue Metals Group shareholders could enjoy a 7.11% return on their shares, in the form of dividend payments. In Fortescue Metals Group's case, that would currently equate to about A$1.76 per share.

While Fortescue Metals Group's payout ratio might seem fairly standard, it's worth remembering that Fortescue Metals Group may be investing much of the rest of its net profits in future growth.

The latest dividend was paid out to all shareholders who bought their shares by 31 August 2020 (the "ex-dividend date").

Have Fortescue Metals Group's shares ever split?

Fortescue Metals Group's shares were split on a 10:1 basis on 19 December 2007. So if you had owned 1 share the day before before the split, the next day you'd have owned 10 shares. This wouldn't directly have changed the overall worth of your Fortescue Metals Group shares – just the quantity. However, indirectly, the new 90% lower share price could have impacted the market appetite for Fortescue Metals Group shares which in turn could have impacted Fortescue Metals Group's share price.

Fortescue Metals Group share price volatility

Over the last 12 months, Fortescue Metals Group's shares have ranged in value from as little as $7.7655 up to $26.4. A popular way to gauge a stock's volatility is its "beta".

FMG.AU volatility(beta: 0.87)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Fortescue Metals Group's is 0.8739. This would suggest that Fortescue Metals Group's shares are less volatile than average (for this exchange).

Fortescue Metals Group overview

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. It also explores for copper and gold deposits. The company owns and operates the Chichester Hub that includes the Cloudbreak and Christmas Creek mines located in the Chichester ranges; and the Solomon Hub comprising the Firetail and Kings Valley mines located in the Hamersley ranges of Pilbara, Western Australia. It is also developing the Eliwana mine situated in the Pilbara region of Western Australia. In addition, the company holds a portfolio of properties situated in Ecuador and Argentina. Further, it provides port towage services. Fortescue Metals Group Limited was founded in 2003 and is headquartered in East Perth, Australia.

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