FREEPORT-MCMORAN INC (FCX)
US35671D8570 - Common Stock
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 157 industry peers in the Metals & Mining industry. FCX has an excellent profitability rating, but there are some minor concerns on its financial health. FCX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FCX was profitable.
In the past year FCX had a positive cash flow from operations.
FCX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years FCX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FCX (3.58%) is better than 70.06% of its industry peers.
Looking at the Return On Equity, with a value of 11.31%, FCX belongs to the top of the industry, outperforming 80.89% of the companies in the same industry.
FCX has a Return On Invested Capital of 9.75%. This is amongst the best in the industry. FCX outperforms 84.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FCX is above the industry average of 8.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 11.31% | ||
| ROIC | 9.75% |
ROA(3y)6.41%
ROA(5y)4.01%
ROE(3y)21.35%
ROE(5y)13.46%
ROIC(3y)10.49%
ROIC(5y)7.26%
1.3 Margins
FCX has a better Profit Margin (7.74%) than 78.34% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
FCX's Operating Margin of 29.10% is amongst the best of the industry. FCX outperforms 89.17% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
FCX has a better Gross Margin (31.95%) than 73.25% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.1% | ||
| PM (TTM) | 7.74% | ||
| GM | 31.95% |
OM growth 3Y21.08%
OM growth 5Y2.54%
PM growth 3Y24.29%
PM growth 5Y-10.39%
GM growth 3Y17.94%
GM growth 5Y2.82%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FCX is destroying value.
Compared to 1 year ago, FCX has more shares outstanding
The number of shares outstanding for FCX has been reduced compared to 5 years ago.
Compared to 1 year ago, FCX has an improved debt to assets ratio.
2.2 Solvency
FCX has an Altman-Z score of 2.07. This is not the best score and indicates that FCX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.07, FCX is in line with its industry, outperforming 40.76% of the companies in the same industry.
The Debt to FCF ratio of FCX is 3.99, which is a good value as it means it would take FCX, 3.99 years of fcf income to pay off all of its debts.
FCX has a Debt to FCF ratio of 3.99. This is in the better half of the industry: FCX outperforms 72.61% of its industry peers.
FCX has a Debt/Equity ratio of 0.51. This is a neutral value indicating FCX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, FCX is doing worse than 77.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.93
WACC10.52%
2.3 Liquidity
FCX has a Current Ratio of 2.33. This indicates that FCX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.33, FCX is in line with its industry, outperforming 50.32% of the companies in the same industry.
FCX has a Quick Ratio of 1.30. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, FCX perfoms like the industry average, outperforming 44.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for FCX have decreased strongly by -19.66% in the last year.
FCX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.40% yearly.
Looking at the last year, FCX shows a quite strong growth in Revenue. The Revenue has grown by 12.91% in the last year.
FCX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.17% yearly.
EPS 1Y (TTM)-19.66%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%16.59%
3.2 Future
Based on estimates for the next years, FCX will show a small growth in Earnings Per Share. The EPS will grow by 7.75% on average per year.
The Revenue is expected to grow by 6.88% on average over the next years.
EPS Next Y0.43%
EPS Next 2Y19.39%
EPS Next 3Y21.86%
EPS Next 5Y7.75%
Revenue Next Year13.59%
Revenue Next 2Y10.02%
Revenue Next 3Y9.19%
Revenue Next 5Y6.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.57, which means the current valuation is very expensive for FCX.
Compared to the rest of the industry, the Price/Earnings ratio of FCX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FCX to the average of the S&P500 Index (29.20), we can say FCX is valued inline with the index average.
A Price/Forward Earnings ratio of 20.05 indicates a rather expensive valuation of FCX.
FCX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FCX to the average of the S&P500 Index (24.00), we can say FCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 20.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 75.80% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 74.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.87 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FCX has a very decent profitability rating, which may justify a higher PE ratio.
FCX's earnings are expected to grow with 21.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)71.93
PEG (5Y)77.04
EPS Next 2Y19.39%
EPS Next 3Y21.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, FCX has a reasonable but not impressive dividend return.
FCX's Dividend Yield is a higher than the industry average which is at 2.89.
Compared to the average S&P500 Dividend Yield of 2.21, FCX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of FCX grows each year by 31.97%, which is quite nice.
FCX has paid a dividend for at least 10 years, which is a reliable track record.
FCX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)31.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
43.58% of the earnings are spent on dividend by FCX. This is a bit on the high side, but may be sustainable.
The dividend of FCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.58%
EPS Next 2Y19.39%
EPS Next 3Y21.86%
FREEPORT-MCMORAN INC
NYSE:FCX (11/22/2024, 8:04:00 PM)
After market: 43.9644 +0.24 (+0.56%)43.72
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap62.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.57 | ||
| Fwd PE | 20.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)71.93
PEG (5Y)77.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 11.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.1% | ||
| PM (TTM) | 7.74% | ||
| GM | 31.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.66%
EPS 3Y41.5%
EPS 5Y
EPS Q2Q%
EPS Next Y0.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y