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Highlights
- FMG dividend yield above historical average
- CAR trading below long-term price-sales ratio
- Insights into two key ASX200 stocks
Two major names on the S&P/ASX200 index – Fortescue Ltd (FMG) and CAR Group Ltd (CAR) – are showing some interesting valuation signals in 2025 that might appeal to investors tracking market trends. Both stocks are moving differently on the price charts, but their financial ratios offer clues into their current value proposition.
Fortescue Ltd (ASX:FMG): A Closer Look at the Yield
Fortescue, a global leader in iron ore production, has seen its share price decline approximately 19.9% since the beginning of 2025. Despite this downturn, its dividend yield tells a different story.
The company currently offers a dividend yield of about 13.02%, well above its 5-year average of 10.52%. Historically, this type of spike can indicate either a drop in the share price or an increase in the dividend payout – or both. Fortescue's latest annual report confirms that the dividend has actually grown compared to its 3-year average, suggesting the company continues to deliver strong cash returns even during periods of share price volatility.
For those keeping an eye on ASX dividend stocks, FMG stands out thanks to its consistent payouts and long-term commitment to returning capital to shareholders.
Aside from iron ore, Fortescue is also pushing into renewable-focused resources like copper, lithium, and rare earths across regions including Australia, Argentina, and Kazakhstan. These diversification efforts align with the rising global demand for battery-related metals, which could support future earnings.
CAR Group Ltd (ASX:CAR): Growth and Valuation Perspective
CAR Group, a digital marketplace for vehicles, operates in several countries including Australia, South Korea, the US, and Chile. Its global expansion and digital-first business model position it well in a tech-forward economy.
The CAR share price is currently about 24.4% above its 52-week low. But a deeper dive into the valuation reveals that it’s trading at a price-to-sales ratio of 12.15x – notably lower than its 5-year average of 14.28x. This may indicate a more favourable entry point relative to its historical norms.
Since CAR is a growth-oriented business, traditional income-based metrics like dividend yield are less applicable. Instead, looking at valuation through price-sales ratios can offer clearer insight into how the market perceives its growth potential.
Both FMG and CAR offer different kinds of value to the S&P/ASX200. Fortescue brings strong dividend performance and resource diversification, while CAR represents a tech-driven growth story currently priced below its long-term valuation benchmark. Whether one leans toward income generation or future expansion, understanding these valuation signals can help paint a more complete picture.
