FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
65.13 USD
+1.5 (+2.36%)
66.5 USD
+1.37 (+2.1%)
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 154 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 each of the past 5 years.
- In the past 5 years FCX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.76%, FCX is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 11.56%, FCX is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
- FCX has a Return On Invested Capital of 8.04%. This is in the better half of the industry: FCX outperforms 71.43% of its industry peers.
- FCX had an Average Return On Invested Capital over the past 3 years of 8.59%. This is in line with the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 11.56% | ||
| ROIC | 8.04% |
ROA(3y)3.58%
ROA(5y)5.29%
ROE(3y)11.14%
ROE(5y)17.28%
ROIC(3y)8.59%
ROIC(5y)9.7%
1.3 Margins
- FCX's Profit Margin of 8.43% is fine compared to the rest of the industry. FCX outperforms 73.38% of its industry peers.
- FCX's Profit Margin has improved in the last couple of years.
- FCX has a better Operating Margin (25.16%) than 74.03% of its industry peers.
- FCX's Operating Margin has improved in the last couple of years.
- The Gross Margin of FCX (28.16%) is better than 64.94% of its industry peers.
- In the last couple of years the Gross Margin of FCX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.16% | ||
| PM (TTM) | 8.43% | ||
| GM | 28.16% |
OM growth 3Y-6.69%
OM growth 5Y9.9%
PM growth 3Y-17.59%
PM growth 5Y15.17%
GM growth 3Y-6.4%
GM growth 5Y7.56%
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.
- Compared to 1 year ago, FCX has about the same amount of shares outstanding.
- Compared to 5 years ago, FCX has less shares outstanding
- The debt/assets ratio for FCX is higher compared to a year ago.
2.2 Solvency
- FCX has an Altman-Z score of 2.41. 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 (2.41) is worse than 68.18% of its industry peers.
- The Debt to FCF ratio of FCX is 6.40, which is on the high side as it means it would take FCX, 6.40 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.40, FCX is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
- FCX has a Debt/Equity ratio of 0.53. This is a neutral value indicating FCX is somewhat dependend on debt financing.
- FCX's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. FCX is outperformed by 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.78
WACC10.33%
2.3 Liquidity
- FCX has a Current Ratio of 2.29. This indicates that FCX is financially healthy and has no problem in meeting its short term obligations.
- FCX has a Current ratio (2.29) which is comparable to the rest of the industry.
- A Quick Ratio of 1.05 indicates that FCX should not have too much problems paying its short term obligations.
- FCX has a worse Quick ratio (1.05) than 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.05% over the past year.
- The Earnings Per Share has been growing by 26.51% on average over the past years. This is a very strong growth
- Looking at the last year, FCX shows a small growth in Revenue. The Revenue has grown by 1.81% in the last year.
- Measured over the past years, FCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.79% on average per year.
EPS 1Y (TTM)19.05%
EPS 3Y-10.37%
EPS 5Y26.51%
EPS Q2Q%51.61%
Revenue 1Y (TTM)1.81%
Revenue growth 3Y4.39%
Revenue growth 5Y12.79%
Sales Q2Q%-1.52%
3.2 Future
- FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.82% yearly.
- Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y42.96%
EPS Next 2Y35.34%
EPS Next 3Y19.85%
EPS Next 5Y3.82%
Revenue Next Year10.07%
Revenue Next 2Y12.6%
Revenue Next 3Y9.96%
Revenue Next 5Y4.76%
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
- The Price/Earnings ratio is 37.22, which means the current valuation is very expensive for FCX.
- Compared to the rest of the industry, the Price/Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 70.78% of the companies listed in the same industry.
- FCX is valuated rather expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- FCX is valuated quite expensively with a Price/Forward Earnings ratio of 26.03.
- FCX's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of FCX to the average of the S&P500 Index (25.72), we can say FCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.22 | ||
| Fwd PE | 26.03 |
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 79.87% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.62 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
- FCX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 19.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)1.4
EPS Next 2Y35.34%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
- FCX has a yearly dividend return of 0.95%, which is pretty low.
- FCX's Dividend Yield is a higher than the industry average which is at 1.02.
- With a Dividend Yield of 0.95, FCX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- On average, the dividend of FCX grows each year by 64.36%, which is quite nice.
- FCX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)64.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- FCX pays out 39.59% of its income as dividend. This is a sustainable payout ratio.
- The dividend of FCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.59%
EPS Next 2Y35.34%
EPS Next 3Y19.85%
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 of FREEPORT-MCMORAN INC (FCX) stock?
ChartMill assigns a valuation rating of 4 / 10 to FREEPORT-MCMORAN INC (FCX). This can be considered as Fairly Valued.
What is the profitability of FCX stock?
FREEPORT-MCMORAN INC (FCX) has a profitability rating of 7 / 10.
What is the financial health of FREEPORT-MCMORAN INC (FCX) stock?
The financial health rating of FREEPORT-MCMORAN INC (FCX) is 4 / 10.
What is the earnings growth outlook for FREEPORT-MCMORAN INC?
The Earnings per Share (EPS) of FREEPORT-MCMORAN INC (FCX) is expected to grow by 42.96% in the next year.