FREEPORT-MCMORAN INC (FCX)
US35671D8570 - Common Stock
We assign a fundamental rating of 5 out of 10 to FCX. FCX was compared to 155 industry peers in the Metals & Mining industry. While FCX has a great profitability rating, there are some minor concerns on its financial health. FCX is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years FCX 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 70.97% of its industry peers.
The Return On Equity of FCX (11.31%) is better than 80.65% of its industry peers.
With an excellent Return On Invested Capital value of 9.75%, FCX belongs to the best of the industry, outperforming 84.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FCX is in line with the industry average of 8.82%.
| 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
Looking at the Profit Margin, with a value of 7.74%, FCX is in the better half of the industry, outperforming 78.06% of the companies in the same industry.
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 89.03% of its industry peers.
In the last couple of years the Operating Margin of FCX has grown nicely.
FCX has a better Gross Margin (31.95%) than 73.55% 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 below the Cost of Capital (WACC), which means it is destroying value.
FCX has more shares outstanding than it did 1 year ago.
FCX has less shares outstanding than it did 5 years ago.
FCX has a better debt/assets ratio than last year.
2.2 Solvency
FCX has an Altman-Z score of 1.97. 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.
The Altman-Z score of FCX (1.97) 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.
The Debt to FCF ratio of FCX (3.99) is better than 70.32% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that FCX is somewhat dependend on debt financing.
FCX's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. FCX is outperformed by 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.93
WACC10.49%
2.3 Liquidity
A Current Ratio of 2.33 indicates that FCX has no problem at all paying its short term obligations.
The Current ratio of FCX (2.33) is comparable to the rest of the 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 44.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
FCX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.66%.
FCX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.40% yearly.
The Revenue has grown by 12.91% in the past year. This is quite good.
The Revenue has been growing slightly by 4.17% on average over the past years.
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
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y0.83%
EPS Next 2Y17.64%
EPS Next 3Y22.01%
EPS Next 5Y2.39%
Revenue Next Year13.61%
Revenue Next 2Y9.48%
Revenue Next 3Y8.82%
Revenue Next 5Y5.09%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.40, 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 (27.54), we can say FCX is valued inline with the index average.
The Price/Forward Earnings ratio is 18.50, which indicates a rather expensive current valuation of FCX.
FCX's Price/Forward Earnings is on the same level as the industry average.
FCX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 18.5 |
4.2 Price Multiples
FCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FCX is cheaper than 75.48% of the companies in the same industry.
FCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FCX is cheaper than 71.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.19 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FCX does not grow enough to justify the current Price/Earnings ratio.
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 22.01% in the coming years.
PEG (NY)32.97
PEG (5Y)69.04
EPS Next 2Y17.64%
EPS Next 3Y22.01%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
The stock price of FCX dropped by -23.61% 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.
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 2.36, FCX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
FCX has been paying a dividend for at least 10 years, so it has 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 2Y17.64%
EPS Next 3Y22.01%
FREEPORT-MCMORAN INC
NYSE:FCX (12/26/2024, 1:47:49 PM)
39.1801
-0.04 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.1%
Inst Owner Change1.07%
Ins Owners0.63%
Ins Owner Change-0.33%
Market Cap56.30B
Analysts79.29
Price Target56.06 (43.08%)
Short Float %1.67%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)0.3%
PT rev (3m)0.93%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)-21.15%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.4 | ||
| Fwd PE | 18.5 | ||
| P/S | 2.2 | ||
| P/FCF | 23.19 | ||
| P/OCF | 7.99 | ||
| P/B | 3.21 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)1.43
EY3.65%
EPS(NY)2.12
Fwd EY5.4%
FCF(TTM)1.69
FCFY4.31%
OCF(TTM)4.9
OCFY12.51%
SpS17.84
BVpS12.21
TBVpS12.21
PEG (NY)32.97
PEG (5Y)69.04
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 | 1.97 |
F-Score7
WACC10.49%
ROIC/WACC0.93
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)-19.66%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%-2.56%
EPS Next Y0.83%
EPS Next 2Y17.64%
EPS Next 3Y22.01%
EPS Next 5Y2.39%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%16.59%
Revenue Next Year13.61%
Revenue Next 2Y9.48%
Revenue Next 3Y8.82%
Revenue Next 5Y5.09%
EBIT growth 1Y22.84%
EBIT growth 3Y41.9%
EBIT growth 5Y6.82%
EBIT Next Year61.76%
EBIT Next 3Y29%
EBIT Next 5Y12.05%
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%