One-glance verdict
Undervalued
$18.04 our estimate vs market $14.94
Wall Street consensus: $17.43 (-3.4% lower than our fair-value estimate)
17% below our estimate, below the bear case
Fundamentals snapshot
Glencore plc
GLNCY · PNK · Basic Materials · Other Industrial Metals & Mining
Current price
$14.94
52-week range
$8.24 - $17.05
Market cap
$87.65B
Balance sheet
Stretched
1.03x Concerning
Net debt $42.00B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 7.2% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Net debt grew 43.6% over 3 years.
- Risk Operating margin compressed from 9.7% to 2.8% over 3 years.
What this company does
Glencore plc
Glencore is a global company that digs up and sells essential raw materials like copper for electronics, cobalt for batteries, and coal for energy. It profits both from its own mines and by acting as a giant middleman, buying and selling these materials to the industries that build our modern world. Because its business depends on the prices of these basic materials, its financial performance often reflects the overall health of the global economy.
How the company got here
Glencore began in 1974 as a company named Marc Rich & Co. AG, focused on trading commodities (raw materials like metals or oil). A key turning point was in 1994 when management bought out the founder, renaming it Glencore. It grew significantly by acquiring mining companies, most notably Xstrata in 2013, which transformed it from just a trader into one of the world's largest miners. This move combined the business of buying and selling commodities with the business of actually digging them out of the ground.
What it actually does
Glencore is a giant in the world of natural resources. Think of the raw materials needed to make almost everything: the copper for wires in your phone, the nickel in electric car batteries, and the coal used to generate electricity. Glencore's business involves both digging these materials out of the ground (mining) and acting as a massive middleman, buying and selling these commodities globally to other businesses. They handle the entire supply chain (the journey from the mine to the factory), storing, transporting, and delivering the raw materials that companies need to create their products.
Marketing Activities
This part of the business acts like a global supermarket for raw materials. Glencore buys commodities from its own mines and from other producers, and then sells them to industrial customers, like car manufacturers or power plants. They make money on the price difference and by providing services like shipping and storage. This segment is known for its large scale and contributes a significant, though often fluctuating, portion of the company's earnings (the profit it makes).
Industrial Activities
This is the mining and production side of the company. Glencore owns and operates mines and production facilities all over the world to extract and process metals and energy products. This includes materials like copper, cobalt, zinc, nickel, and coal. This segment's revenue (the total money it brings in before costs) comes from selling these physical materials. The profitability of this business depends heavily on the global prices of the commodities it produces.
What management is betting on now
Management is focusing on what they call 'transition metals,' which are essential for new technologies like electric vehicles and renewable energy systems. They are investing in mines that produce copper, cobalt, nickel, and zinc, believing demand for these materials will grow as the world shifts away from fossil fuels. At the same time, they are managing their coal business to generate cash while gradually reducing its size over the long term. This strategy aims to profit from current energy needs while positioning the company for a lower-carbon future.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $18.04 vs current price $14.94
Wall Street consensus is the average analyst price target: $17.43 (-3.4% lower than our fair-value estimate).
Our most-likely fair value is $18.04 a share — about 20.8% above today's price of $14.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $42.0B. Interest coverage 1.0x.
Net debt
$42.00B
Interest coverage
1.03x
Glencore plc is healthier than 0 of 1 peers on balance-sheet leverage.
Stretched
Worse cushion
Baseline
Better cushion
GLNCY
BASELINE
Glencore plc
Total debt $45.73B Interest coverage 1.03x This is the baseline the peer rows are being compared against.
What you should know
The case for and against GLNCY
3 Rewards
2 Risks
Rewards
-
Revenue grew 7.2% last year.
-
Free cash flow was positive in 3/10 years.
-
Dividend yield is 2.2% with 15-year payout history.
Risks
-
Net debt grew 43.6% over 3 years.
-
Operating margin compressed from 9.7% to 2.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.60x
Forward P/E
12.82x
P/B
2.10x
P/S
0.29x
EV/EBITDA
10.14x
PEG ratio
0.23x
Profitability
How much profit each dollar creates
Gross margin
3.4%
Operating margin
2.8%
Net margin
1.8%
ROE
16.0%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.24x
Current ratio
1.06x
Quick ratio
0.33x
Total debt
$45.73B
Total cash
$3.74B
Growth
How the business has been compounding
Revenue TTM
$304.57B
Revenue 5Y CAGR
-1.1%
EPS TTM
0.90
EPS 5Y CAGR
-71.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.64B
Free CF TTM
$-290.00M
FCF margin
-0.1%
Dividend
Shareholder payout
Yield
2.2%
Payout ratio
30.0%
Last ex-div date
2026-08-28