FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
NYSE:FCX - New York Stock Exchange, Inc. - US35671D8570 - Common Stock - Currency: USD
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 150 industry peers in the Metals & Mining industry. FCX has an excellent profitability rating, but there are some minor concerns on its financial health. FCX is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years FCX 4 years had a positive operating cash flow.
1.2 Ratios
FCX has a Return On Assets of 3.58%. This is in the better half of the industry: FCX outperforms 72.00% 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 81.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.75%, FCX belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FCX is in line with the industry average of 8.67%.
| 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's Profit Margin of 7.74% is fine compared to the rest of the industry. FCX outperforms 76.67% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
FCX's Operating Margin of 29.10% is amongst the best of the industry. FCX outperforms 86.67% 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 74.67% of its industry peers.
In the last couple of years the Gross Margin of FCX has grown nicely.
| 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
FCX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for FCX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.92 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FCX has a Altman-Z score of 1.92. This is comparable to the rest of the industry: FCX outperforms 42.67% of its industry peers.
FCX has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as FCX would need 3.99 years to pay back of all of its debts.
FCX has a better Debt to FCF ratio (3.99) than 72.00% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 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 75.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 1.92 |
ROIC/WACC1
WACC9.72%
2.3 Liquidity
A Current Ratio of 2.33 indicates that FCX has no problem at all paying its short term obligations.
With a Current ratio value of 2.33, FCX perfoms like the industry average, outperforming 56.00% 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.
FCX has a Quick ratio of 1.30. This is comparable to the rest of the industry: FCX outperforms 47.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
FCX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.92%.
FCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 136.19% yearly.
EPS 1Y (TTM)-3.92%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%14.81%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.13%
3.2 Future
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.40% yearly.
FCX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.28% yearly.
EPS Next Y12.96%
EPS Next 2Y25.72%
EPS Next 3Y19.64%
EPS Next 5Y1.4%
Revenue Next Year1.15%
Revenue Next 2Y5.88%
Revenue Next 3Y4.78%
Revenue Next 5Y-2.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FCX is valuated quite expensively with a Price/Earnings ratio of 25.96.
FCX's Price/Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.71. FCX is around the same levels.
Based on the Price/Forward Earnings ratio of 22.98, the valuation of FCX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCX is on the same level as its industry peers.
FCX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 22.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than the industry average as 79.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than the industry average as 77.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FCX may justify a higher PE ratio.
FCX's earnings are expected to grow with 19.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)0.19
EPS Next 2Y25.72%
EPS Next 3Y19.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.60%, FCX has a reasonable but not impressive dividend return.
FCX's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to the average S&P500 Dividend Yield of 2.30, FCX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
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
FCX pays out 43.58% of its income as dividend. 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 2Y25.72%
EPS Next 3Y19.64%
38.16
+3.26 (+9.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.63%
Inst Owner Change-1.25%
Ins Owners0.66%
Ins Owner Change2.2%
Market Cap53.42B
Analysts73.33
Price Target49.01 (28.43%)
Short Float %1.9%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.6
Dividend Growth(5Y)31.97%
DP43.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.51%
Min EPS beat(2)6.69%
Max EPS beat(2)18.32%
EPS beat(4)4
Avg EPS beat(4)17.22%
Min EPS beat(4)6.69%
Max EPS beat(4)22.96%
EPS beat(8)8
Avg EPS beat(8)13.77%
EPS beat(12)10
Avg EPS beat(12)10.12%
EPS beat(16)13
Avg EPS beat(16)8.22%
Revenue beat(2)2
Avg Revenue beat(2)6.68%
Min Revenue beat(2)3.92%
Max Revenue beat(2)9.43%
Revenue beat(4)3
Avg Revenue beat(4)5.95%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)10.58%
Revenue beat(8)7
Avg Revenue beat(8)4.86%
Revenue beat(12)9
Avg Revenue beat(12)1.98%
Revenue beat(16)10
Avg Revenue beat(16)1.54%
PT rev (1m)-2.81%
PT rev (3m)-13.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.15%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 22.98 | ||
| P/S | 2.08 | ||
| P/FCF | 22 | ||
| P/OCF | 7.58 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)1.47
EY3.85%
EPS(NY)1.66
Fwd EY4.35%
FCF(TTM)1.73
FCFY4.54%
OCF(TTM)5.03
OCFY13.19%
SpS18.31
BVpS12.53
TBVpS12.53
PEG (NY)2
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 11.31% | ||
| ROCE | 15.18% | ||
| ROIC | 9.75% | ||
| ROICexc | 10.85% | ||
| ROICexgc | 10.85% | ||
| OM | 29.1% | ||
| PM (TTM) | 7.74% | ||
| GM | 31.95% | ||
| FCFM | 9.47% |
ROA(3y)6.41%
ROA(5y)4.01%
ROE(3y)21.35%
ROE(5y)13.46%
ROIC(3y)10.49%
ROIC(5y)7.26%
ROICexc(3y)12.56%
ROICexc(5y)8.59%
ROICexgc(3y)12.71%
ROICexgc(5y)8.69%
ROCE(3y)16.33%
ROCE(5y)11.3%
ROICexcg growth 3Y33.63%
ROICexcg growth 5Y2.81%
ROICexc growth 3Y33.69%
ROICexc growth 5Y2.84%
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%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 201.31% | ||
| Cap/Sales | 18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.22% | ||
| Profit Quality | 122.32% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.92 |
F-Score7
WACC9.72%
ROIC/WACC1
Cap/Depr(3y)164.55%
Cap/Depr(5y)161.96%
Cap/Sales(3y)14.68%
Cap/Sales(5y)15.25%
Profit Quality(3y)72.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.92%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%14.81%
EPS Next Y12.96%
EPS Next 2Y25.72%
EPS Next 3Y19.64%
EPS Next 5Y1.4%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.13%
Revenue Next Year1.15%
Revenue Next 2Y5.88%
Revenue Next 3Y4.78%
Revenue Next 5Y-2.28%
EBIT growth 1Y22.84%
EBIT growth 3Y41.9%
EBIT growth 5Y6.82%
EBIT Next Year55.48%
EBIT Next 3Y25.04%
EBIT Next 5Y16.73%
FCF growth 1Y-24.43%
FCF growth 3Y-14.72%
FCF growth 5Y-19.12%
OCF growth 1Y10.93%
OCF growth 3Y20.5%
OCF growth 5Y6.45%