Kalkine: Tracking Momentum: What’s Unfolding for Fortescue (ASX:FMG) and CAR Group (ASX:CAR)

June 12, 2025 03:20 PM AEST | By Team Kalkine Media

Fortescue (ASX:FMG)

Founded in 2003, Fortescue is one of the world’s key iron ore producers, with operations centered in Western Australia’s Pilbara region. Annually, it ships over 190 million tonnes of iron ore. However, Fortescue’s focus is no longer limited to iron. Its broader vision involves targeting materials that align with the clean energy transition—including copper, rare earths, and lithium.

Exploration initiatives are now active across Australia and international sites such as Argentina, Brazil, Chile, and Kazakhstan. This resource diversification positions Fortescue to cater to rising global demand driven by electrification, renewable infrastructure, and battery technology.

From a performance standpoint, the company posted a return on equity (ROE) of 30.2% in FY24, surpassing standard expectations for a large, mature enterprise. A debt/equity ratio of 27.6% also reflects a balanced capital structure. Notably, Fortescue has delivered a strong average dividend yield of 10.5% per annum over the past five years—an aspect that income-focused investors may appreciate.

CAR Group (ASX:CAR)

CAR Group, a prominent operator of digital vehicle marketplaces since the 1990s, offers platforms that streamline the buying and selling of cars, motorcycles, and commercial vehicles. It leverages advertising tools and integrated tech solutions to enhance transaction efficiency and user experience.

While its roots are in Australia, CAR Group has steadily expanded its global presence, including operations in South Korea (Encar), the United States (Trader Interactive), and Chile (chileautos).

Financially, the company has achieved an impressive revenue growth rate of 37.0% annually over the past three years, reaching $1,099 million in FY24. Net profit also climbed from $131 million to $250 million over the same period. While its ROE stands at 8.6%, this is a developing trend, and the company’s performance trajectory suggests further scaling potential.

Both Fortescue and CAR Group are evolving in ways that reflect broader market transformations—be it the shift to green energy or the digitization of commerce. While one brings strength through diversification into critical resources, the other thrives through tech-driven global expansion. These contrasting yet compelling stories offer insights into how established and emerging business models are navigating the current economic landscape.

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