Glencore PLC
🇬🇧 GLEN.LSE · London · JE00B4T3BW64
Materials
GBX 563.60 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
183.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 563.60 ÷ 3.07 = 183.6
TTM period through: 2025-12-31
Forward P/E (estimated): 11.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 281.8
Yield (Fwd)
2.13%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.02%
Net Debt/EBITDA (TTM)
3.8x
Latest quarter: 6.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 6.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
390.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 328.4%
Cash Flow Payout (TTM): 18.9%
FCF Coverage (TTM): 0.32x
ROE
0.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
12.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Glencore is a major global commodity trader and mining company currently navigating a severe cyclical downturn and operational impairments. While the forward valuation suggests a potential cyclical bottom, the company's pure commodity exposure, volatile earnings, and recurring dividend cuts make it fundamentally unsuitable for conservative dividend strategies. Not recommended for new positions, as better income opportunities exist in more stable, essential service sectors.
Sector Context
Glencore is a major global commodity trader and mining company that extracts, processes, and markets metals, minerals, and energy products. Operating in the pure commodities sector inherently conflicts with conservative dividend investing, as the company acts as a price-taker subject to extreme cyclical volatility rather than generating the predictable, monopoly-like cash flows desired for sustainable income.
Temporary Opportunity Identified
Cyclical downturn in global commodity markets, particularly thermal coal and base metals, combined with significant one-off operational impairments.
📊 Strategy Analysis
- • Forward P/E of 11.13 indicates that the current cyclical downturn in commodity prices and earnings may be reaching a bottom.
- • Despite severe earnings volatility, the company has maintained long-term top-line expansion with a 10-year revenue CAGR of 5.2%.
⚠ What to Watch
- • Operates as a pure commodity price-taker, directly conflicting with the strategy's core requirement for essential services with predictable cash flows.
- • Severe track record of dividend unreliability, evidenced by consecutive deep cuts in 2024 (-74.7%) and 2025 (-22.4%), alongside extremely weak Free Cash Flow coverage (0.32x).
- • Net Debt/EBITDA has deteriorated to 3.78x, exceeding the conservative 3.0x threshold and raising balance sheet risk during a cyclical trough.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.