` Comparison: TEMBO vs FMG - Alpha Spread

TEMBO
vs
FMG

Over the past 12 months, TEMBO has underperformed FMG, delivering a return of -12% compared to the FMG's +24% growth.

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TEMBO
FMG
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Valuation Comparison

TEMBO Intrinsic Value
850.48 INR
Undervaluation 37%
Intrinsic Value
Price
FMG Intrinsic Value
15.34 AUD
Overvaluation 27%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Tembo Global Industries Ltd
NSE:TEMBO
532 INR
Fortescue Metals Group Ltd
ASX:FMG
20.92 AUD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
TEMBO, FMG

TEMBO
FMG
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Tembo Global Industries Ltd
Revenue
Fortescue Metals Group Ltd
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
TEMBO, FMG

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FMG
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Tembo Global Industries Ltd
NSE:TEMBO
Fortescue Metals Group Ltd
ASX:FMG
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What is Free Cash Flow?

Gross Margin

TEMBO
27.7%
FMG
41.4%

Operating Margin

TEMBO
13.7%
FMG
33.3%

Net Margin

TEMBO
7.7%
FMG
21.7%

FCF Margin

TEMBO
0.7%
FMG
19.6%

ROE

TEMBO
47.1%
FMG
17.1%

ROA

TEMBO
14.9%
FMG
11.1%

ROIC

TEMBO
22.3%
FMG
14.5%

ROCE

TEMBO
60.6%
FMG
18.7%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
TEMBO, FMG

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Performance Gap
TEMBO, FMG

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TEMBO
FMG
Difference
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Performance By Year
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TEMBO
FMG
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett