Fortescue

FMG.AX

Industrial Materials · Basic Materials

Price

A$17.75

-0.20 (-1.11%)

Market Cap

A$54.65B

Exchange

Australian Securities Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Strong

Growth

Weak

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

Fortescue is an Australian company that digs iron ore out of the ground in Western Australia and ships it to customers, mostly steel mills in China. Iron ore is the main ingredient in steel, which is used to build everything from cars to skyscrapers. Fortescue is one of the four largest iron ore producers in the world, alongside giants like BHP and Rio Tinto.

The company makes money by selling iron ore by the tonne, so its profits rise and fall with the global iron ore price. Fortescue operates almost entirely in Australia but sells the vast majority of its product to China, which makes it heavily exposed to Chinese steel demand. The company is also investing heavily in green hydrogen and renewable energy through its Fortescue Energy division, which could become a new revenue stream but is currently a significant cost and carries real execution risk given how early that industry is.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-19.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$400M/ year

↓ Declining (-53% vs prior year)

2.3% of revenue

Below sector average (3%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

48.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$4.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Fortescue's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.08B (2022) → 3.08B (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

39.3%

Modest — 39.3% gross margin

Profit after running costs

Operating Margin

34.5%

Excellent — 34.5% operating margin

Return on the money invested

ROCE

21.6%

Exceptional — 21.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+2.7%

Nearly flat sales (+2.7% YoY)

Profit growth

EPS YoY

-1.6%

Earnings shrinking (-1.6% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

189%

Turns 189% of profit into real cash

Spare cash per sale

FCF Margin

24.0%

Converts sales into free cash efficiently (24.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.28

Conservative — low debt load (0.28)

Covers its interest

Interest Cover

16.55x

Comfortably covers interest (16.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.3x

Attractive valuation — P/E 14.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

-4.4

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

6.91%

Healthy income — 6.91% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

-35.4%

Dividend cut (-35.4% YoY) — warning sign

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