Understanding Glencore Valuation and Financial Health

Glencore's valuation is a complex topic, but let's break it down. The company's market capitalization is around $50 billion, which is a significant indicator of its overall value.

Glencore's revenue has been steadily increasing over the years, reaching $209 billion in 2020. This growth is a result of the company's diversified portfolio of commodities, including copper, zinc, and coal.

To understand Glencore's valuation, we need to look at its financial health. In 2020, the company reported a net profit of $3.4 billion, which is a significant improvement from the previous year's net loss of $1.1 billion.

Glencore's debt-to-equity ratio is around 0.4, which indicates that the company has a relatively low level of debt compared to its equity. This is a positive sign for investors.

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Glencore's valuation is a complex topic, but let's break it down. GLEN's share price is trading below its estimated fair value, which is £3.29. This is based on a Discounted Cash Flow model that takes into account the company's future cash flows.

The fair value is estimated to be £3.29, which is significantly higher than the current share price of £3.19. This suggests that GLEN is undervalued at the moment.

Looking at the valuation ratios, we can see that the Forward PE ratio is 12.66, which is a relatively high ratio. This means that investors are expecting a lot of growth from the company in the future.

Here are the valuation ratios for GLEN:

The PS Ratio is particularly low at 0.24, which suggests that the company is undervalued compared to its peers.

According to Wall Street analysts, the average 1-year price target for GLEN is 484.82 GBX, with a low forecast of 439.35 GBX and a high forecast of 545.7 GBX. This suggests that analysts expect the company to perform well in the future and reach these price targets.

However, the intrinsic value of one GLEN stock under the Base Case scenario is 1,051.15 GBX, which is significantly higher than the current share price. This suggests that the company has a lot of potential for growth and that the current price is a good entry point for investors.

Glencore's financial health is a crucial aspect of its valuation. The company's current assets stand at 55.9B, with a significant portion of that being cash and short-term investments at 2.4B.

The company's current liabilities are substantial, totaling 49.7B, with a notable amount being accounts payable at 29B. This suggests that Glencore may be facing liquidity issues.

Here's a breakdown of Glencore's current liabilities:

The company's financial data is last updated on 2025/02/28 23:16, which may indicate some recent changes in its financial situation.

A company's balance sheet is like a snapshot of its financial health at a particular moment. It shows what the company owns (assets) and what it owes (liabilities), as well as its overall equity.

The balance sheet is usually divided into two main sections: current assets and non-current assets. Current assets are things the company expects to turn into cash within a year, such as cash and accounts receivable. For example, Glencore PLC has $55.9 billion in current assets, which includes $2.4 billion in cash and short-term investments.

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Current assets can also include other items like inventory and prepaid expenses. In the case of Glencore PLC, its current assets include $34.3 billion in other current assets.

Non-current assets, on the other hand, are things the company expects to use for more than a year, such as property, plant, and equipment (PP&E). Glencore PLC has $74.5 billion in non-current assets, which includes $50.2 billion in PP&E.

Here's a breakdown of Glencore PLC's current and non-current assets:

The balance sheet also shows a company's liabilities, which are things it owes to others. Liabilities can be current or non-current, just like assets. For example, Glencore PLC has $49.7 billion in current liabilities, which includes $29 billion in accounts payable and $857 million in short-term debt.

The net cash position of a company is the difference between its cash and its total debt. For example, Glencore PLC has a net cash position of -23.08 billion, which means it has more debt than cash.

The income statement is a crucial document that provides a snapshot of a company's financial performance over a specific period. Glencore's income statement for the last 12 months reveals a significant loss of GBP 412.25 million.

Revenue was a substantial GBP 180.02 billion, but this was not enough to offset the company's losses. The gross profit was a relatively modest GBP 5.52 billion.

Operating income was GBP 3.90 billion, which is a notable figure. However, the company's pretax income was a loss of GBP 753.29 million.

Here is a summary of Glencore's income statement:

The loss per share was a significant GBP -0.03, indicating that the company's losses were substantial enough to affect the value of each share.

Broaden your view: Glencore Share Price Forecast

As we dive into the world of financial analysis, it's essential to understand the company's analysis and financial data. This information can be found in the company's reports and analysis.

The company's last updated financial data is from February 28, 2025, at 23:16 UTC time.

Let's take a closer look at the company's analysts. Teun Teeuwisse from ABN AMRO Bank N.V., Pierre-Yves Gauthier from AlphaValue, and Wade Napier from Avior Capital Markets have provided their expertise.

Here's a summary of the company's financial data:

The company's balance sheet reveals a net cash position of -23.08 billion or -1.90 per share. This is a significant concern, as it indicates the company is deeply in debt.

The company's cash and cash equivalents total 2.25 billion, while its total debt is a staggering 25.33 billion.

In the last 12 months, the company reported revenue of 180.02 billion and losses of -412.25 million. This resulted in a loss per share of -0.03.

Glencore's financial health is a concern, with an Altman Z-Score of 2.99 indicating an increased risk of bankruptcy. This score suggests that Glencore may struggle to meet its financial obligations.

The company's Piotroski F-Score of 7 is a more positive indicator, but it's essential to consider the Z-Score's warning signal.

Here's a brief summary of the scores:

Glencore PLC's profitability score is 48/100, indicating the company's relatively low level of profitability. The higher the profitability score, the more profitable the company is.

Glencore PLC's solvency score is 38/100, which indicates that the company is not very solvent.

A higher solvency score means a company is more solvent.

The solvency score is a measure of a company's ability to pay its debts, and Glencore's score suggests it may struggle with this.

Glencore's analyst price targets are a key indicator of the company's potential future performance. The average 1-year price target for GLEN is £4.56, with a low forecast of £4.19 and a high forecast of £4.91.

This target price is more than 20% higher than the current share price of £3.19, indicating a potential for significant growth. Analysts are within a statistically confident range of agreement on this target price.

The dispersion of analyst forecasts ranges from 4.4% to 11.4%, indicating a moderate level of uncertainty among analysts. The table below shows the analyst price targets for GLEN over the past year:

The table shows that the average 1-year price target for GLEN has been consistently above the current share price over the past year, indicating a potential for growth.

Glencore's valuation is a complex topic, but let's break down some key statistics.

Glencore's market capitalization is around $50 billion, a significant increase from its 2011 IPO valuation of $61 billion.

The company's revenue has grown steadily over the years, reaching $163 billion in 2020, up from $130 billion in 2015.

Glencore's debt-to-equity ratio is around 1.5, indicating a relatively high level of indebtedness.

The company's focus on commodity trading and production has allowed it to maintain a strong cash flow position.

The Basic Materials & Mining sector is a fascinating area to explore. The average Price to Earnings (P/E) ratio for this sector is 9.45x, with a weighted average of 9.36x based on market capitalization.

Some notable companies in this sector include Glencore PLC, BHP Group Limited, and Rio Tinto PLC. Glencore PLC has a P/E ratio of 26.29x, which is significantly higher than the sector average.

Here's a comparison of some key metrics for these companies:

These companies are leaders in the sector, but it's essential to consider their individual performance and growth prospects. For instance, Anglo American PLC has a P/E ratio of -84.26x, which raises some red flags.

The sector's average EV/EBITDA ratio is 7.36x, with a weighted average of 6.62x. This suggests that the sector is generally valued at around 7-8 times its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Overall, the Basic Materials & Mining sector offers a mix of established leaders and emerging players, each with their unique strengths and challenges.

Stock statistics can be a great way to get a quick snapshot of a company's performance. In the case of Glencore, their stock price has decreased by -16.76% in the last 52 weeks.

Their stock price volatility has been higher than the market average, with a beta of 1.22. This means that Glencore's stock price has been more sensitive to market movements.

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The 50-Day Moving Average is 369.33, which is a good indicator of the stock's recent performance. On the other hand, the 200-Day Moving Average is 416.58, which suggests a longer-term trend.

The Relative Strength Index (RSI) is 39.07, which indicates that the stock may be undervalued. This is a good opportunity for investors to consider buying.

Here's a summary of the key statistics:

Glencore's valuation is a topic of interest for many investors. According to GLEN News, Glencore PLC is currently undervalued by 70% compared to the market price of 319.15 GBX.

This significant undervaluation could make Glencore an attractive investment opportunity for those looking to buy low and sell high. However, it's essential to consider other factors before making a decision.

Glencore's financial health can be evaluated using various scores. The company has an Altman Z-Score of 2.99 and a Piotroski F-Score of 7.

Glencore PLC is undervalued by 70% compared to the current market price of 319.15 GBX. This significant undervaluation presents a potential buying opportunity for investors.

The current market price of 319.15 GBX is the benchmark for this assessment.

Glencore's financial health is a topic of interest, and we can look at two key scores to gauge its stability.

Glencore has an Altman Z-Score of 2.99, which suggests an increased risk of bankruptcy.

A Z-score under 3 is considered a red flag, indicating potential financial difficulties.

The Piotroski F-Score of 7 for Glencore is a more positive indicator, suggesting that the company is financially healthy.

Here's a summary of the scores: