Fact based stock research
Glencore (LSE:GLEN)
JE00B4T3BW64
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Glencore stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Glencore (Diversified Metals & Mining, Switzerland) shares have lower financial characteristics compared with similar stocks. Shares of Glencore are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives) but show below-average growth (Growth Rank of 24), and are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Glencore's financial characteristics. As the company Glencore's key financial metrics exhibit good value (Obermatt Value Rank of 54) but low growth (Obermatt Growth Rank of 24) and risky financing practices (Obermatt Safety Rank of 12), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 54% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Switzerland |
| Industry | Diversified Metals & Mining |
| Index | FTSE All Shares, FTSE 100, FTSE 350, Low Emissions, Copper, Dividends Europe, Human Rights, Iron, Low Waste, Zinc, Recycling, Water Efficiency |
| Size class | XX-Large |
This stock has achievements: Insight 2023-05-04, Top 10 Stock.
26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Glencore
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 53 |
|
83 |
|
27 |
|
54 |
|
| GROWTH | ||||||||
| GROWTH | 69 |
|
95 |
|
41 |
|
24 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
3 |
|
19 |
|
12 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
32 |
|
43 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
51 |
|
15 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 10 (worse than 90% compared with investment alternatives), Glencore (Diversified Metals & Mining, Switzerland) shares have lower financial characteristics compared with similar stocks. Shares of Glencore are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives) but show below-average growth (Growth Rank of 24), and are riskily financed (Safety Rank of 12), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 10, is a sell recommendation based on Glencore's financial characteristics. As the company Glencore's key financial metrics exhibit good value (Obermatt Value Rank of 54) but low growth (Obermatt Growth Rank of 24) and risky financing practices (Obermatt Safety Rank of 12), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 54% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 53 |
|
83 |
|
27 |
|
54 |
|
| GROWTH | ||||||||
| GROWTH | 69 |
|
95 |
|
41 |
|
24 |
|
| SAFETY | ||||||||
| SAFETY | 7 |
|
3 |
|
19 |
|
12 |
|
| COMBINED | ||||||||
| COMBINED | 7 |
|
67 |
|
11 |
|
10 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 54 (better than 54% compared with alternatives), Glencore shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Glencore. Price-to-Sales (P/S) is 87, which means that the stock price compared with what market professionals expect for future sales is lower than for 87% of comparable companies, indicating a good value concerning Glencore's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 80, which means that dividends are expected to be higher than for 80% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 67% of alternatives (only 33% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 65% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 54, is a buy recommendation based on Glencore's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 83 |
|
93 |
|
87 |
|
87 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 26 |
|
65 |
|
35 |
|
35 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 44 |
|
49 |
|
24 |
|
33 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 64 |
|
99 |
|
35 |
|
80 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 53 |
|
83 |
|
27 |
|
54 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 24 (better than 24% compared with alternatives), Glencore shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Glencore. Only Capital Growth has a good rank of 71, which means that currently professionals expect the company to grow its invested capital more than 16% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 6 which means that currently professionals expect the company to grow less than 94% of its competitors. Profit Growth with a rank of 16 and Stock Returns with a rank of 36 are also low (below 64% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 24, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Glencore is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 59 |
|
70 |
|
43 |
|
6 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 60 |
|
77 |
|
26 |
|
16 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
67 |
|
64 |
|
71 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 84 |
|
79 |
|
47 |
|
36 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 69 |
|
95 |
|
41 |
|
24 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 12 (better than 12% compared with alternatives), the company Glencore has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Glencore is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Glencore. Liquidity is at 23, meaning that the company generates less profit to service its debt than 77% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 19, meaning the company has an above-average debt-to-equity ratio. It has more debt than 81% of its competitors. Finally, Refinancing is at a rank of 36 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 64% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 12 (worse than 88% compared with alternatives), Glencore has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Glencore because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 22 |
|
18 |
|
28 |
|
19 |
|
| REFINANCING | ||||||||
| REFINANCING | 59 |
|
13 |
|
37 |
|
36 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 13 |
|
21 |
|
50 |
|
23 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 7 |
|
3 |
|
19 |
|
12 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
75 |
|
82 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
86 |
|
17 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
14 |
|
69 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
12 |
|
25 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
32 |
|
43 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Glencore from December 26, 2024.
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