First Quantum Minerals Ltd. (FM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hudbay Minerals, Inc.

China Gold International Resources Corp. Ltd.

Capstone Copper Corp.

Ero Copper Corp.

Lundin Mining Corp.

Ivanhoe Mines Ltd.

Cameco Corp.

First Quantum Minerals Ltd.

Sigma Lithium Corp.

NexGen Energy Ltd.

Lithium Americas (Argentina) Corp.

Why is First Quantum Minerals Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 27.44% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.22% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 3.51%

The company declared positive results in Dec'24 after negative results in Sep'24

NET PROFIT(HY) At CAD -19.53 MM has Grown at 87.15%
RAW MATERIAL COST(Y) Fallen by -5.59% (YoY)

With ROE of 0.69%, it has a fair valuation with a 1.45 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 56.65%, its profits have risen by 110.6% ; the PEG ratio of the company is 1.9

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 56.65% in the last 1 year, much higher than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is First Quantum Minerals Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

First Quantum Minerals Ltd.

34.45%

4.62

48.72%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.91%

EBIT Growth (5y)

7.06%

EBIT to Interest (avg)

2.69

Debt to EBITDA (avg)

2.80

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.29

Tax Ratio

78.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

9.84%

ROE (avg)

4.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.79

EV to EBIT

19.73

EV to EBITDA

12.61

EV to Capital Employed

1.51

EV to Sales

4.95

PEG Ratio

Dividend Yield

ROCE (Latest)

7.64%

ROE (Latest)

-0.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 2,220.3 MM

INTEREST COVERAGE RATIO(Q)

Highest at 404.83

DEBT-EQUITY RATIO (HY)

Lowest at 57.07 %

NET SALES(Q)

Highest at CAD 2,056.68 MM

OPERATING PROFIT(Q)

Highest at CAD 818.49 MM

PRE-TAX PROFIT(Q)

At CAD 245.41 MM has Grown at 59.11%

-14What is not working for the Company

NET PROFIT(Q)

At CAD -48.5 MM has Fallen at -57.94%

RAW MATERIAL COST(Y)

Grown by 13.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.32 times

Here's what is working for First Quantum Minerals Ltd.

Operating Cash Flow

Highest at CAD 2,220.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 404.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 2,056.68 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 818.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

At CAD 245.41 MM has Grown at 59.11%

over average net sales of the previous four periods of CAD 154.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Debt-Equity Ratio

Lowest at 57.07 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for First Quantum Minerals Ltd.

Net Profit

At CAD -48.5 MM has Fallen at -57.94%

over average net sales of the previous four periods of CAD -30.71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 5.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales