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FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis

NYSE:FCX - New York Stock Exchange, Inc. - US35671D8570 - Common Stock - Currency: USD

35.84  -0.83 (-2.26%)

After market: 35.81 -0.03 (-0.08%)

Fundamental Rating

5

FCX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 152 industry peers in the Metals & Mining industry. FCX scores excellent on profitability, but there are some minor concerns on its financial health. FCX has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

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.
Of the past 5 years FCX 4 years were profitable.
FCX had a positive operating cash flow in 4 of the past 5 years.
FCX Yearly Net Income VS EBIT VS OCF VS FCFFCX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B

1.2 Ratios

FCX has a Return On Assets of 3.58%. This is in the better half of the industry: FCX outperforms 71.72% of its industry peers.
With an excellent Return On Equity value of 11.31%, FCX belongs to the best of the industry, outperforming 80.69% 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 83.45% of its industry peers.
FCX had an Average Return On Invested Capital over the past 3 years of 10.49%. This is in line with the industry average of 8.80%.
Industry RankSector 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%
FCX Yearly ROA, ROE, ROICFCX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150

1.3 Margins

FCX has a Profit Margin of 7.74%. This is in the better half of the industry: FCX outperforms 76.55% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
FCX has a better Operating Margin (29.10%) than 88.28% of its industry peers.
In the last couple of years the Operating Margin of FCX has grown nicely.
FCX's Gross Margin of 31.95% is fine compared to the rest of the industry. FCX outperforms 72.41% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
FCX Yearly Profit, Operating, Gross MarginsFCX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60 -80

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FCX is creating some value.
FCX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FCX Yearly Shares OutstandingFCX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B
FCX Yearly Total Debt VS Total AssetsFCX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

FCX has an Altman-Z score of 1.91. 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.
FCX has a Altman-Z score (1.91) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 3.99, FCX is doing good in the industry, outperforming 70.34% of the companies in the same industry.
FCX has a Debt/Equity ratio of 0.51. This is a neutral value indicating FCX is somewhat dependend on debt financing.
FCX has a worse Debt to Equity ratio (0.51) than 78.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 3.99
Altman-Z 1.91
ROIC/WACC0.95
WACC10.29%
FCX Yearly LT Debt VS Equity VS FCFFCX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

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.
FCX has a Current ratio of 2.33. This is comparable to the rest of the industry: FCX outperforms 53.10% of its industry peers.
A Quick Ratio of 1.30 indicates that FCX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, FCX perfoms like the industry average, outperforming 45.52% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.33
Quick Ratio 1.3
FCX Yearly Current Assets VS Current LiabilitesFCX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

1

3. Growth

3.1 Past

The earnings per share for FCX have decreased by -3.92% in the last year.
The Earnings Per Share has been growing by 136.19% on average over the past years. This is a very strong growth
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

The Earnings Per Share is expected to grow by 1.40% on average over the next years.
The Revenue is expected to decrease by -2.32% on average over the next years.
EPS Next Y18.46%
EPS Next 2Y26.51%
EPS Next 3Y19.54%
EPS Next 5Y1.4%
Revenue Next Year4.46%
Revenue Next 2Y6.47%
Revenue Next 3Y4.84%
Revenue Next 5Y-2.32%

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.
FCX Yearly Revenue VS EstimatesFCX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
FCX Yearly EPS VS EstimatesFCX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.38, FCX is valued on the expensive side.
FCX's Price/Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 63.45% of the companies in the same industry.
FCX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.58 indicates a rather expensive valuation of FCX.
FCX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, FCX is valued at the same level.
Industry RankSector Rank
PE 24.38
Fwd PE 20.58
FCX Price Earnings VS Forward Price EarningsFCX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than 79.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than 75.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.21
EV/EBITDA 5.88
FCX Per share dataFCX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FCX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FCX's earnings are expected to grow with 19.54% in the coming years.
PEG (NY)1.32
PEG (5Y)0.18
EPS Next 2Y26.51%
EPS Next 3Y19.54%

5

5. Dividend

5.1 Amount

FCX has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
The stock price of FCX dropped by -21.39% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.17, FCX pays a bit more dividend than its industry peers.
FCX's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 1.59%

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
FCX Yearly Dividends per shareFCX Yearly Dividends per shareYearly Dividends per share 2015 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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.
FCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.58%
EPS Next 2Y26.51%
EPS Next 3Y19.54%
FCX Yearly Income VS Free CF VS DividendFCX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B -10B
FCX Dividend Payout.FCX Dividend Payout, showing the Payout Ratio.FCX Dividend Payout.PayoutRetained Earnings

FREEPORT-MCMORAN INC

NYSE:FCX (1/28/2025, 8:04:00 PM)

After market: 35.81 -0.03 (-0.08%)

35.84

-0.83 (-2.26%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-23 2025-01-23/bmo
Earnings (Next)N/A N/A
Inst Owners85.1%
Inst Owner Change-0.03%
Ins Owners0.63%
Ins Owner Change-0.33%
Market Cap51.50B
Analysts78.57
Price Target55.55 (54.99%)
Short Float %1.83%
Short Ratio2.27
Dividend
Industry RankSector Rank
Dividend Yield 1.59%
Yearly Dividend0.6
Dividend Growth(5Y)31.97%
DP43.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date01-15 2025-01-15 (0.075)
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)-0.91%
PT rev (3m)-0.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-1.46%
Valuation
Industry RankSector Rank
PE 24.38
Fwd PE 20.58
P/S 2.01
P/FCF 21.21
P/OCF 7.31
P/B 2.93
P/tB 2.93
EV/EBITDA 5.88
EPS(TTM)1.47
EY4.1%
EPS(NY)1.74
Fwd EY4.86%
FCF(TTM)1.69
FCFY4.71%
OCF(TTM)4.9
OCFY13.68%
SpS17.84
BVpS12.21
TBVpS12.21
PEG (NY)1.32
PEG (5Y)0.18
Profitability
Industry RankSector 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 RankSector 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 1.91
F-Score7
WACC10.29%
ROIC/WACC0.95
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 Y18.46%
EPS Next 2Y26.51%
EPS Next 3Y19.54%
EPS Next 5Y1.4%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.13%
Revenue Next Year4.46%
Revenue Next 2Y6.47%
Revenue Next 3Y4.84%
Revenue Next 5Y-2.32%
EBIT growth 1Y22.84%
EBIT growth 3Y41.9%
EBIT growth 5Y6.82%
EBIT Next Year58.37%
EBIT Next 3Y26.65%
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%