Fresnillo (FRES.L)
Materials · LSE · UK
Fundamentals
Valuation and ratings
Fresnillo trades at £24.55, which is 123% below the £54.67 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 94 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 18.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Fresnillo
Fresnillo plc mines, develops, and produces non-ferrous minerals in Mexico. It operates through seven segments: Fresnillo, Saucito, Ciénega, Herradura, Noche Buena, San Julián, and Juanicipio. The company primarily explores for silver, gold, lead, and zinc concentrates. Its projects include the Fresnillo silver mine located in the state of Zacatecas; Saucito mine situated in the state of Zacatecas; Ciénega mine located in the state of Durango; Herradura mine located in the state of Sonora; Noche Buena mine located in the state of Sonora; San Julián mine situated on the border of Chihuahua/Durango states; and Juanicipio mine located in the state of Zacatecas. The company also leases mining equipment; produces lead, silver and zinc concentrates and silver precipitates; produces gold/silver doré bars; mines projects; and provides exploration and administrative services. Fresnillo plc was founded in 1887 and is headquartered in Mexico City, Mexico. Fresnillo plc is a subsidiary of Industrias Peñoles, S.A.B. de C.V.
FRES.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Fresnillo (FRES.L) undervalued?
Against our discounted cash flow estimate of £54.67, FRES.L at £24.55 is 123% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is FRES.L's P/E ratio?
FRES.L trades at 18.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for FRES.L, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.