Fortescue Metals Group (FSUGY) AI Stock Analysis

Fortescue Metals Group

(Other OTC:FSUGY)

Select Model

Rating:72Outperform

Price Target:$22.50▲(11.94% Upside)

Action:reiterated

Date:08/22/26

The overall score reflects a robust but normalizing financial position with healthy profitability and cash generation as the primary strength, supported by an attractive valuation driven by a solid dividend yield and moderate P/E, while being tempered by a currently weak price trend and elevated volatility.

Positive Factors

Integrated Pilbara infrastructureFortescue’s integrated mining, rail, processing, and port network gives it control over a substantial part of the export chain. That structure can support reliable shipment execution and allow the company to retain logistics margin, reinforcing its competitive position over multiple quarters.

Negative Factors

Iron ore cycle exposureThe business remains structurally dependent on iron ore pricing and global steelmaking demand, so earnings can vary materially even when operations perform well. This commodity exposure limits revenue visibility and can pressure margins and cash generation during weaker market cycles.

Fortescue Metals Group (FSUGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $30.78B
Dividend Yield: 7.34%
Average Volume (3M): 91.77K
Price to Earnings (P/E): 10.8
Beta (1Y): 1.20
Revenue Growth: 9.64%
EPS Growth: -14.63%
Country: US
Employees: 15,642
Sector: Basic Materials
Sector Strength: 61
Industry: Industrial Materials

Fortescue Metals Group Business Overview & Revenue Model

Company Description

Fortescue Metals Group Limited is a global mining enterprise primarily engaged in the full lifecycle of iron ore, encompassing exploration, development, extraction, processing, and worldwide distribution, with a significant presence in Australia and...

How the Company Makes Money

Fortescue primarily makes money by producing and selling iron ore (mainly fines and lumps) to customers in the global seaborne iron ore market, with demand largely driven by steel production. Revenue is generated when iron ore is shipped and sold und...

Fortescue Metals Group Financial Statement Overview

Summary

Strong equity base, moderate leverage, and consistently positive operating and free cash flow support a solid financial profile, but steadily compressing margins, lower returns on capital, and declining free cash flow growth weigh on the score.

Income Statement

72Positive

Balance Sheet

80Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	17.01B	17.04B	15.42B	18.11B	16.66B	17.31B
Gross Profit	6.36B	6.35B	8.75B	11.53B	8.85B	9.16B
EBITDA	8.27B	8.28B	7.55B	10.51B	8.67B	10.39B
Net Income	2.88B	2.88B	3.37B	5.68B	4.80B	6.20B
Balance Sheet
Total Assets	32.56B	32.56B	30.52B	30.06B	28.94B	29.09B
Cash, Cash Equivalents and Short-Term Investments	5.07B	5.07B	4.33B	4.90B	4.28B	5.22B
Total Debt	5.93B	5.93B	5.44B	5.40B	5.31B	6.10B
Total Liabilities	12.31B	12.31B	10.56B	10.53B	10.98B	11.75B
Stockholders Equity	20.28B	20.28B	19.98B	19.55B	17.95B	17.33B
Cash Flow
Free Cash Flow	3.55B	3.55B	3.24B	5.08B	4.44B	3.62B
Operating Cash Flow	6.82B	6.82B	6.47B	7.92B	7.31B	6.27B
Investing Cash Flow	-3.64B	-3.65B	-3.92B	-2.81B	-3.08B	-2.91B
Financing Cash Flow	-2.49B	-2.49B	-3.19B	-4.46B	-4.91B	-4.81B

Fortescue Metals Group Technical Analysis

Technical Analysis SentimentNegative

Last Price20.10

Price Trends

50DMA22.88Negative

100DMA24.26Negative

200DMA26.33Negative

Market Momentum

MACD-0.76Positive

RSI31.31Neutral

STOCH20.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSUGY, the sentiment is Negative. The current price of 20.10 is below the 20-day moving average (MA) of 21.22, below the 50-day MA of 22.88, and below the 200-day MA of 26.33, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 31.31 is Neutral, neither overbought nor oversold. The STOCH value of 20.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSUGY.

Fortescue Metals Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

FSUGY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHP	73Outperform	$205.76B	20.87	19.41%	4.35%	15.12%	9.37%
FSUGY	72Outperform	$30.88B	10.79	13.99%	7.34%	9.64%	-14.63%
RIO	62Neutral	$140.86B	10.99	18.86%	5.68%	14.26%	17.02%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NEXA	60Neutral	$1.47B	10.07	12.97%	1.19%	23.37%	―
VALE	56Neutral	$45.46B	22.80	1.93%	9.34%	10.51%	-88.83%
GSM	53Neutral	$721.28M	-17.90	-5.64%	1.53%	-8.54%	61.49%

* Basic Materials Sector Average

Performance Comparison

FSUGY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FSUGY	Fortescue Metals Group	20.08	-5.88	-22.66%
BHP	Bhp Group	79.16	25.25	46.84%
GSM	Ferroglobe PLC	3.86	-0.83	-17.71%
RIO	Rio Tinto	81.89	14.88	22.20%
VALE	Vale SA	11.39	0.02	0.19%
NEXA	Nexa Resources	11.08	5.46	97.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 22, 2026

Fortescue Metals Group AI Stock Analysis