FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - NYSE:FCX - US35671D8570 - Common Stock
38.65 USD
-1.56 (-3.88%)
39.66 USD
+1.01 (+2.61%)
We assign a fundamental rating of 5 out of 10 to FCX. FCX was compared to 154 industry peers in the Metals & Mining industry. FCX has an average financial health and profitability rating. FCX has a correct valuation and a medium 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.
In the past 5 years FCX has always been profitable.
Each year in the past 5 years FCX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FCX (3.62%) is better than 70.13% of its industry peers.
The Return On Equity of FCX (11.02%) is better than 79.87% of its industry peers.
With a decent Return On Invested Capital value of 8.53%, FCX is doing good in the industry, outperforming 77.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FCX is below the industry average of 12.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 11.02% | ||
| ROIC | 8.53% |
ROA(3y)4.57%
ROA(5y)4.82%
ROE(3y)14.67%
ROE(5y)16.12%
ROIC(3y)9.07%
ROIC(5y)8.64%
1.3 Margins
The Profit Margin of FCX (7.92%) is better than 74.03% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
The Operating Margin of FCX (26.78%) is better than 78.57% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.63%, FCX is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Gross Margin of FCX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.78% | ||
| PM (TTM) | 7.92% | ||
| GM | 29.63% |
OM growth 3Y-9.21%
OM growth 5Y41.84%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y27.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FCX is still creating some value.
FCX has about the same amout of shares outstanding than it did 1 year ago.
FCX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FCX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 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 1.93. This is in the lower half of the industry: FCX underperforms 66.23% of its industry peers.
The Debt to FCF ratio of FCX is 4.44, which is a neutral value as it means it would take FCX, 4.44 years of fcf income to pay off all of its debts.
FCX has a Debt to FCF ratio of 4.44. This is in the better half of the industry: FCX outperforms 73.38% of its industry peers.
FCX has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
FCX's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. FCX is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.99
WACC8.59%
2.3 Liquidity
A Current Ratio of 2.45 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.45) which is in line with its industry peers.
FCX has a Quick Ratio of 1.19. 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 1.19, FCX is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.19%, which is quite good.
FCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 136.19% yearly.
The Revenue has been growing slightly by 1.41% in the past year.
FCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.07% yearly.
EPS 1Y (TTM)11.19%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%31.58%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%2.68%
3.2 Future
The Earnings Per Share is expected to grow by 4.03% on average over the next years.
FCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.79% yearly.
EPS Next Y-2.42%
EPS Next 2Y20.57%
EPS Next 3Y25.89%
EPS Next 5Y4.03%
Revenue Next Year-2.94%
Revenue Next 2Y2.11%
Revenue Next 3Y6.4%
Revenue Next 5Y1.79%
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.
When comparing the Revenue 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 rather expensively with a Price/Earnings ratio of 24.31.
Based on the Price/Earnings ratio, FCX is valued a bit cheaper than the industry average as 70.13% of the companies are valued more expensively.
FCX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.09, the valuation of FCX can be described as rather expensive.
FCX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, FCX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 18.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FCX indicates a rather cheap valuation: FCX is cheaper than 88.31% of the companies listed in the same industry.
78.57% of the companies in the same industry are more expensive than FCX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.49 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
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 25.89% in the coming years.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y20.57%
EPS Next 3Y25.89%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.64, FCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.44, FCX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
On average, the dividend of FCX grows each year by 24.59%, which is quite nice.
FCX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.99% 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.
DP41.99%
EPS Next 2Y20.57%
EPS Next 3Y25.89%
38.65
-1.56 (-3.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.03%
Inst Owner Change-0.4%
Ins Owners0.65%
Ins Owner Change0.31%
Market Cap55.49B
Revenue(TTM)26.00B
Net Income(TTM)2.06B
Analysts73.85
Price Target48.39 (25.2%)
Short Float %1.39%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP41.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.63%
Min EPS beat(2)17.82%
Max EPS beat(2)21.43%
EPS beat(4)3
Avg EPS beat(4)22.5%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)19.86%
EPS beat(12)11
Avg EPS beat(12)16.68%
EPS beat(16)13
Avg EPS beat(16)13.22%
Revenue beat(2)2
Avg Revenue beat(2)3.46%
Min Revenue beat(2)2.94%
Max Revenue beat(2)3.99%
Revenue beat(4)3
Avg Revenue beat(4)1.91%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)4.3%
Revenue beat(8)6
Avg Revenue beat(8)3.93%
Revenue beat(12)10
Avg Revenue beat(12)3.88%
Revenue beat(16)12
Avg Revenue beat(16)1.96%
PT rev (1m)-6.54%
PT rev (3m)-5.63%
EPS NQ rev (1m)-14.06%
EPS NQ rev (3m)-55.13%
EPS NY rev (1m)-22.37%
EPS NY rev (3m)-20.71%
Revenue NQ rev (1m)-3.19%
Revenue NQ rev (3m)-27.03%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-9.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.13 | ||
| P/FCF | 26.49 | ||
| P/OCF | 8.73 | ||
| P/B | 2.97 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)1.59
EY4.11%
EPS(NY)2.14
Fwd EY5.53%
FCF(TTM)1.46
FCFY3.78%
OCF(TTM)4.42
OCFY11.45%
SpS18.11
BVpS13.01
TBVpS13.01
PEG (NY)N/A
PEG (5Y)0.18
Graham Number21.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 11.02% | ||
| ROCE | 13.57% | ||
| ROIC | 8.53% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 9.31% | ||
| OM | 26.78% | ||
| PM (TTM) | 7.92% | ||
| GM | 29.63% | ||
| FCFM | 8.06% |
ROA(3y)4.57%
ROA(5y)4.82%
ROE(3y)14.67%
ROE(5y)16.12%
ROIC(3y)9.07%
ROIC(5y)8.64%
ROICexc(3y)10.38%
ROICexc(5y)10.08%
ROICexgc(3y)10.49%
ROICexgc(5y)10.2%
ROCE(3y)14.44%
ROCE(5y)13.74%
ROICexgc growth 3Y-14.57%
ROICexgc growth 5Y51.28%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y51.37%
OM growth 3Y-9.21%
OM growth 5Y41.84%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y27.78%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.44 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 185.45% | ||
| Cap/Sales | 16.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.61% | ||
| Profit Quality | 101.7% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.93 |
F-Score7
WACC8.59%
ROIC/WACC0.99
Cap/Depr(3y)195.2%
Cap/Depr(5y)163.96%
Cap/Sales(3y)17.4%
Cap/Sales(5y)15.05%
Profit Quality(3y)77.69%
Profit Quality(5y)108.11%
High Growth Momentum
Growth
EPS 1Y (TTM)11.19%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%31.58%
EPS Next Y-2.42%
EPS Next 2Y20.57%
EPS Next 3Y25.89%
EPS Next 5Y4.03%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%2.68%
Revenue Next Year-2.94%
Revenue Next 2Y2.11%
Revenue Next 3Y6.4%
Revenue Next 5Y1.79%
EBIT growth 1Y-6.66%
EBIT growth 3Y-5.88%
EBIT growth 5Y58.95%
EBIT Next Year52.01%
EBIT Next 3Y26.01%
EBIT Next 5Y8.87%
FCF growth 1Y193.83%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y26.35%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%
FREEPORT-MCMORAN INC / FCX FAQ
Can you provide the ChartMill fundamental rating for FREEPORT-MCMORAN INC?
ChartMill assigns a fundamental rating of 5 / 10 to FCX.
What is the valuation status for FCX stock?
ChartMill assigns a valuation rating of 5 / 10 to FREEPORT-MCMORAN INC (FCX). This can be considered as Fairly Valued.
How profitable is FREEPORT-MCMORAN INC (FCX) stock?
FREEPORT-MCMORAN INC (FCX) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for FCX stock?
The Price/Earnings (PE) ratio for FREEPORT-MCMORAN INC (FCX) is 24.31 and the Price/Book (PB) ratio is 2.97.
How sustainable is the dividend of FREEPORT-MCMORAN INC (FCX) stock?
The dividend rating of FREEPORT-MCMORAN INC (FCX) is 4 / 10 and the dividend payout ratio is 41.99%.