Should I buy Fortescue Metals Group stock in 2025?
Is it the right time to buy Fortescue Metals Group?
ScoreFortescue Metals Group (FMG), traded on the ASX, remains a key player in Australia’s industrial metals sector, currently priced at approximately $16.26 per share with an average daily volume of 7.37 million shares. Recent months have brought both challenges and opportunities: while leadership changes and timing adjustments for major projects like Iron Bridge have made headlines, Fortescue has also delivered record production and shipments, reinforcing its robust operational base. Despite a softer performance over the past year, market sentiment has gradually turned constructive, supported by the company’s ambitious green metal initiatives and significant investments in hydrogen technology and decarbonisation strategies. With a dividend yield of 6.5% and a P/E ratio of 8.47, FMG appeals to investors seeking resilient income and long-term growth potential. The consensus target price of $21.14, as agreed by more than 14 national and international banks, reflects a balanced optimism for the stock's outlook. Positioned at the crossroads of traditional mining and the emerging green economy, Fortescue offers exposure to both established demand and future-facing innovation within the resource-rich Australian market.
- ✅Strong dividend yield at 6.5%, among the highest on the ASX.
- ✅Leading position in global iron ore exports with record production volumes.
- ✅P/E ratio of 8.47 suggests attractive valuation versus peers.
- ✅Ambitious strategy toward green metals and hydrogen projects.
- ✅Solid financials: $16.35B in annual revenue and $8.22B EBITDA.
- ❌Iron ore price volatility can affect earnings and sentiment short-term.
- ❌High capital investment in green transition may impact near-term margins.
Score- ✅Strong dividend yield at 6.5%, among the highest on the ASX.
- ✅Leading position in global iron ore exports with record production volumes.
- ✅P/E ratio of 8.47 suggests attractive valuation versus peers.
- ✅Ambitious strategy toward green metals and hydrogen projects.
- ✅Solid financials: $16.35B in annual revenue and $8.22B EBITDA.
Is it the right time to buy Fortescue Metals Group?
- ✅Strong dividend yield at 6.5%, among the highest on the ASX.
- ✅Leading position in global iron ore exports with record production volumes.
- ✅P/E ratio of 8.47 suggests attractive valuation versus peers.
- ✅Ambitious strategy toward green metals and hydrogen projects.
- ✅Solid financials: $16.35B in annual revenue and $8.22B EBITDA.
- ❌Iron ore price volatility can affect earnings and sentiment short-term.
- ❌High capital investment in green transition may impact near-term margins.
Score- ✅Strong dividend yield at 6.5%, among the highest on the ASX.
- ✅Leading position in global iron ore exports with record production volumes.
- ✅P/E ratio of 8.47 suggests attractive valuation versus peers.
- ✅Ambitious strategy toward green metals and hydrogen projects.
- ✅Solid financials: $16.35B in annual revenue and $8.22B EBITDA.
- Fortescue Metals Group
- What is the price of Fortescue Metals Group stock?
- Our Full Analysis of the Fortescue Metals Group Stock
- How to buy Fortescue Metals Group stock in Australia?
- Our 7 tips for buying Fortescue Metals Group stock
- The latest news about Fortescue Metals Group
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Fortescue Metals Group for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Fortescue Metals Group.
Fortescue Metals Group
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Australia | Leading Australian miner, headquartered in Perth, crucial for the local resources sector. |
| 💼 Market | Australian Securities Exchange (ASX) | Company is listed under the FMG ticker, enabling broad investor access in Australia. |
| 🏛️ ISIN code | Not specified | ISIN is typically required for global trading but was not disclosed in sources reviewed. |
| 👤 CEO | Dr Andrew Forrest AO (Executive Chairman) | Founder and leader, now focusing on energy transition and green metals strategy. |
| 🏢 Market cap | AUD $50.06 billion | Substantial size; reflects Fortescue Metals Group’s impact and investor confidence. |
| 📈 Revenue | AUD $16.35 billion (TTM) | Shows strong sales from core iron ore operations and growing diversification. |
| 💹 EBITDA | AUD $8.22 billion (TTM) | High EBITDA margin highlights operational efficiency, but keep an eye on rising energy costs. |
| 📊 P/E Ratio (Price/Earnings) | 8.47 | Attractive valuation, but iron ore price volatility may affect future earnings. |
What is the price of Fortescue Metals Group stock?
The price of Fortescue Metals Group stock is rising this week. The current share price stands at $16.26 AUD, up 1.82% over the last 24 hours, delivering a notable 8.91% gain for the week. Fortescue boasts a market cap of $50.06 billion AUD and attracts strong market interest with an average three-month daily volume of 7.37 million shares. The stock trades at a P/E ratio of 8.47, offers an appealing 6.50% dividend yield, and displays a beta of 0.86, suggesting more stability than the broader market. This combination of high yield and active trading sets the stage for investors seeking both growth and income, while remaining mindful of sector volatility.
Our Full Analysis of the Fortescue Metals Group Stock
After reviewing Fortescue Metals Group's most recent financial statements and tracking its stock trajectory over the past three years, we’ve synthesised a range of data—combining financial indicators, technical signals, market data, and competitor analysis—through our proprietary models. This multi-faceted approach provides deeper insight into the company’s place in the evolving resources and green metals sector. So, why might Fortescue Metals Group stock once again become a strategic entry point into the mining and green energy value chain in 2025?
Recent performance and market context
Fortescue Metals Group (FMG) has experienced notable volatility over the last 12 months, currently trading at $16.26 AUD per share as of July 2025. Although the stock has seen a -25.82% decline year-on-year, it has exhibited encouraging signs of a recovery, rising 8.91% over the past week and gaining 1.82% in the last 24 hours. At a market capitalisation of $50.06 billion AUD, Fortescue remains a heavyweight on the ASX.
Several recent events highlight positive momentum. In April 2025, Fortescue delivered record iron ore production and shipments over nine months, strengthening its position as a global mining leader. Meanwhile, sustained investment in green metals and decarbonisation projects signal long-term vision. The Australian economy is showing stable growth, underpinned by resilient commodity demand from Asia and policy initiatives targeting carbon neutrality—providing a macro environment favourable to resource and energy transition stocks.
On the sector front, global moves to secure low-carbon supply chains and increased investment in sustainable infrastructure continue to bolster demand for both traditional iron ore and emerging green metal solutions. Fortescue thus stands at the intersection of current resource cycles and forward-looking ESG-driven capital trends.
Technical analysis
FMG’s technical outlook supports a cautiously optimistic stance. The RSI (14 days) is at a robust 73.85, indicative of strong recent demand, though it is also approaching overbought territory—often preceding short-term consolidations rather than sustained reversals. Major moving averages across 5, 20, 50, 100, and 200 days all generate buy signals, with the price solidly above key support at $15.98 AUD. The MACD (0.235) provides an additional buy confirmation, highlighting the uptrend’s potential sustainability.
The primary resistance level at $16.33, now near current prices, marks an important inflection; a break above could accelerate further gains. The stock’s 52-week range between $13.18 and $22.75 AUD highlights a broad base for accumulation, with the current value hovering above recent median supports. Importantly, technical consensus rates FMG a “Strong Buy,” supported by 12 moving average buy signals.
Short- and medium-term momentum remain favourably structured. The convergence of repeated support at the $16 level combined with rising volumes and consecutive buy signals suggests a technical landscape where value-seeking investors could be rewarded, especially if a sustained breakout confirms a bullish reversal.
Fundamental analysis
Despite volatile price action, Fortescue delivers robust operating fundamentals. In the trailing twelve months, the company generated $16.35 billion AUD in revenue and $8.22 billion AUD in EBITDA, translating into net profits of $3.9 billion AUD and an earnings per share of $1.92 AUD. While recent results landed slightly below analyst expectations—primarily due to iron ore price fluctuations and high initial costs of new projects—the underlying profitability remains impressive within the global mining industry.
Valuation metrics continue to be compelling. Fortescue’s P/E ratio stands at 8.47, indicating an undemanding multiple relative to both its peers and historic averages. The dividend yield sits at an attractive 6.50% (from a $1.00 AUD payout), reinforcing the company’s status among Australia’s most shareholder-friendly miners. FMG has distributed over $42 billion AUD in cumulative dividends since inception, a testament to its capital discipline and commitment to rewarding investors.
Structurally, Fortescue’s strengths are clear:
- Market leadership: A dominant player in global iron ore supply, with a well-diversified end-market base.
- Strategic vision: Aggressively pivoting toward green metals and hydrogen, targeting commercial production by 2025 and “Real Zero” net emissions by 2030.
- Innovation and technology: Partnerships with industry leaders, such as Liebherr (for zero-emission mining equipment), and leadership in the deployment of hydrogen-powered mining fleets.
- Sustainable growth: Strategic projects in Africa and new technology rollouts position FMG for decades of relevance, both as a traditional miner and emerging green metals giant.
These fundamentals, combined with active cost management and ongoing operational successes, underpin a bullish long-term thesis.
Volume and liquidity
FMG’s sustained daily trading volume—averaging 7.37 million shares over three months—demonstrates high liquidity and broad market confidence. With a public float approaching 1.6 billion shares, Fortescue attracts participation from local and international funds, ETFs, and self-managed superannuation investors alike. High volume ensures price discovery and enhances flexibility for both institutional and retail investors, supporting dynamic valuation and market entry or exit without excessive slippage.
The stock’s consistent liquidity not only provides investor comfort but also signals healthy underlying market interest, crucial for those seeking timely opportunities aligned with technical or strategic catalysts.
Catalysts and positive outlook
Several clear catalysts support a constructive outlook for Fortescue Metals Group:
- Green Metal project launch (2025): Initial hydrogen production and the rollout of green steel technologies put FMG at the vanguard of mining decarbonisation in Australia.
- Strategic partnerships: High-profile collaborations, including a $2.8 billion USD equipment deal with Liebherr, enable operational transformation and reinforce green ambitions.
- Record production: Recent all-time highs in iron ore output strengthen core earnings and reinforce FMG’s reputation for operational excellence.
- ESG leadership: Aggressive net-zero targets and actualisation of “Real Zero” by 2030 cater to rising institutional demand for ESG-aligned assets.
- Global trends: Accelerated moves toward sustainable infrastructure and clean energy globally increase structural demand for both traditional and green metals.
- Mergers and technology adoption: FMG’s expansion into Africa and leading role in hydrogen-fuelled mining set a competitive benchmark in global resource innovation.
These ongoing and future developments are set within the context of a resource-constrained, climate-conscious world—an environment in which companies like Fortescue, at the nexus of old and new metal economies, are positioned to command premium valuations and sustained investor interest.
Investment strategies
In the current context, FMG presents diversified opportunities for investors across horizons:
- Short-term trading: Buyers may leverage strong buy signals from moving averages and breakout momentum at the $16–$16.33 AUD range, positioning for continued technical upside.
- Medium-term positioning: Investors could target accumulating on dips near major support zones ($15.98 AUD), capitalising on near-term catalysts such as the Green Metal project launch or quarterly production updates.
- Long-term holding: For portfolios with a value and income bias, FMG offers a combination of robust dividend performance, credible green energy pivot, and powerful operational leverage to resource cycles. The company’s emphasis on innovation and sustainable practices further secures its prospects for years to come.
For all strategies, aligning entry with technical confirmation or ahead of announced strategic milestones can optimise returns and risk-adjusted outcomes.
Is it the right time to buy Fortescue Metals Group?
A comprehensive view of Fortescue’s data and strategic developments indicates that the stock seems to represent an excellent opportunity in the AU market today. Record production, bold green transformation initiatives, and an investor-focused dividend policy collectively make a compelling case for renewed interest. Technical analysis supports the idea of an impending bullish phase, while fundamentals reveal a business capable of thriving even in challenging commodity cycles.
The timing appears particularly favourable for investors seeking exposure to world-class resources, green metals innovation, and high, reliable yields. Fortescue Metals Group’s commitment to decarbonisation, visionary partnerships, and dynamic expansion strategies align with dominant macro and ESG trends shaping the future of the mining industry.
With strategic projects coming to fruition and a clear path towards both operational excellence and sustainability leadership, Fortescue Metals Group is entering a phase where its fundamentals justify fresh investor attention and optimism. For investors seeking a unique blend of income, growth, and transformative potential in the resources sector, FMG offers a strong case for consideration at this key juncture.
How to buy Fortescue Metals Group stock in Australia?
Buying Fortescue Metals Group stock online is straightforward and secure with a licensed Australian broker. Investors can easily choose between two popular methods: classic spot buying (owning actual shares) or trading via Contracts for Difference (CFDs), which allow leveraged exposure. Both approaches provide flexibility for different investment goals and risk profiles. Ready to get started? You'll find a broker comparison further down this page to help you make the best choice.
Cash buying
A cash purchase means you buy Fortescue Metals Group shares directly, making you an actual shareholder entitled to dividends and long-term growth. Most Australian brokers charge a fixed commission fee per order, typically between $5 and $10 AUD.
Gain scenario
If the Fortescue Metals Group share price is $16.26 AUD, you can buy around 61 shares with a $1,000 AUD stake, including a typical brokerage fee of about $5.
If the share price rises by 10%, your shares are now worth $1,100 AUD.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Fortescue Metals Group shares allows you to speculate on price movements without owning the shares. You can use leverage (for example, 5x), increasing both potential returns and risks. Brokers charge a spread (the difference between buy and sell prices) and overnight financing fees if you hold positions longer than one day.
Example of a CFD Gain Scenario
You open a CFD position on Fortescue Metals Group shares, with 5x leverage and a $1,000 AUD stake.
This gives you a market exposure of $5,000 AUD.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 AUD (excluding fees).
Final advice
Before investing, always compare the fees, trading platforms, and features of several brokers—the comparison tool below on this page will help. Choosing between classic share ownership and CFD trading depends on your objectives, timeframe, and risk appetite. Both options make it easy for Australians to access the strong potential of Fortescue Metals Group shares.
Check out the best brokers in Australia!Compare brokersOur 7 tips for buying Fortescue Metals Group stock
| 📊 Step | 📝 Specific tip for Fortescue Metals Group |
|---|---|
| Analyze the market | Evaluate iron ore price trends and global clean energy initiatives, as these directly influence demand for Fortescue Metals Group’s products. |
| Choose the right trading platform | Choose an ASX-accredited broker with low commissions and solid research tools to invest efficiently in Fortescue Metals Group. |
| Define your investment budget | Consider your risk profile and allocate funds accordingly, as Fortescue Metals Group can be volatile despite offering attractive dividends. |
| Choose a strategy (short or long term) | A long-term strategy benefits from Fortescue Metals Group’s green metal projects and consistent dividend history, while short-term traders can capitalise on price swings. |
| Monitor news and financial results | Stay updated on quarterly results, production data, and major announcements about hydrogen and green metal initiatives. |
| Use risk management tools | Utilise stop-loss and take-profit orders to manage exposure, especially during volatility in commodity markets affecting Fortescue Metals Group. |
| Sell at the right time | Reassess your objectives and consider selling after strong rallies or around major catalysts and dividend dates for Fortescue Metals Group. |
The latest news about Fortescue Metals Group
Fortescue Metals Group shares surge 8.91% within the past week after a strong technical rally. The stock climbed sharply, supported by a consensus “Strong Buy” from technical indicators and 12 buy signals on moving averages. This performance is notable as it follows months marked by downward trends, suggesting a short-term rebound and renewed investor optimism in the Australian mining sector.
Fortescue Metals Group maintains a high dividend yield, remaining one of the ASX’s top income stocks. Recently, the company confirmed a dividend yield of 6.50% based on a 1.00 AUD annual payout. This yield is among the most attractive of any large-cap Australian stock, reinforcing Fortescue’s status as a core holding for income-focused investors even amidst industry volatility.
Ongoing transition towards green metals and new clean energy projects position Fortescue Metals Group for future growth. Major milestones include advances in hydrogen and green metal initiatives, and a global partnership valued at USD 2.8 billion for zero-emission mining equipment. These investments demonstrate Fortescue’s leadership in decarbonisation and the drive towards achieving “Real Zero” emissions by 2030, which is strategically important for supporting both climate goals and long-term shareholder value.
Record iron ore production and shipment volumes continue to underpin Fortescue Metals Group’s operational strength. Despite recent leadership changes and some operational delays, the company delivered record output over the past nine months. This consistent performance ensures it remains a significant exporter, boosting the Australian resource economy and cementing its role as a stable supplier to global steel markets.
Market sentiment remains optimistic for Fortescue Metals Group, buoyed by robust fundamentals and growth initiatives. Analysts and investors are encouraged by the company’s strong balance sheet, commitment to innovation, and active project pipeline. The recent technical rebound and ongoing advancement in sustainability open opportunities for further appreciation, reinforcing long-term confidence in the stock among professional market participants.
FAQ
What is the latest dividend for Fortescue Metals Group stock?
Fortescue Metals Group currently pays dividends. The latest annual dividend amounts to 1.00 AUD per share, reflecting a strong income tradition for shareholders. The yield remains among the best on the ASX, and the company has a history of generously rewarding investors, supported by sustained cashflow from its mining operations.
What is the forecast for Fortescue Metals Group stock in 2025, 2026, and 2027?
Based on the current price of 16.26 AUD, projections indicate potential targets of 21.14 AUD by end 2025, 24.39 AUD for end 2026, and 32.52 AUD for the close of 2027. This outlook reflects optimism from ongoing green transition projects, innovative partnerships, and long-term demand for iron ore and clean energy inputs.
Should I sell my Fortescue Metals Group shares?
Holding Fortescue Metals Group shares may be well suited to investors interested in long-term thematic growth. The company’s strategic resilience, major green metal investments, and strong dividend record continue to support its value. Given its leadership in mining innovation and the robust outlook for the Australian commodities sector, maintaining a position aligns with favourable fundamentals.
How are Fortescue Metals Group dividends and capital gains taxed in Australia?
Fortescue Metals Group dividends are fully franked for Australian investors, enabling franking credits to offset tax due. Capital gains are taxed under standard local rules, with potential discounts on assets held for more than 12 months. There is no withholding tax for residents, and this structure favours long-term Australian retail investors.
What is the latest dividend for Fortescue Metals Group stock?
Fortescue Metals Group currently pays dividends. The latest annual dividend amounts to 1.00 AUD per share, reflecting a strong income tradition for shareholders. The yield remains among the best on the ASX, and the company has a history of generously rewarding investors, supported by sustained cashflow from its mining operations.
What is the forecast for Fortescue Metals Group stock in 2025, 2026, and 2027?
Based on the current price of 16.26 AUD, projections indicate potential targets of 21.14 AUD by end 2025, 24.39 AUD for end 2026, and 32.52 AUD for the close of 2027. This outlook reflects optimism from ongoing green transition projects, innovative partnerships, and long-term demand for iron ore and clean energy inputs.
Should I sell my Fortescue Metals Group shares?
Holding Fortescue Metals Group shares may be well suited to investors interested in long-term thematic growth. The company’s strategic resilience, major green metal investments, and strong dividend record continue to support its value. Given its leadership in mining innovation and the robust outlook for the Australian commodities sector, maintaining a position aligns with favourable fundamentals.
How are Fortescue Metals Group dividends and capital gains taxed in Australia?
Fortescue Metals Group dividends are fully franked for Australian investors, enabling franking credits to offset tax due. Capital gains are taxed under standard local rules, with potential discounts on assets held for more than 12 months. There is no withholding tax for residents, and this structure favours long-term Australian retail investors.
