FMG (FSUMF) is one of the largest iron ore exporters in Australia. The company predominantly sells its iron ore to steel mills in China. Therefore, the company is leveraged to China’s recovery and economy stimulus package.
Following FMG’s share price decline, the stock is offering 8-10% dividend yields in FY21/22 and the company is trading at a forward P/E of around 4x. FMG's balance sheet has meaningfully improved, thanks to the elevated iron ore price and accelerated debt repayments. Net Debt/EBITDA is expected to average below 0.5x for the forecast period. FMG also benefits from