FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
63.63 USD
+0.76 (+1.21%)
63.51 USD
-0.12 (-0.19%)
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 154 industry peers in the Metals & Mining industry. While FCX belongs to the best of the industry regarding profitability, 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.
- Each year in the past 5 years FCX has been profitable.
- Each year in the past 5 years FCX had a positive operating cash flow.
1.2 Ratios
- FCX's Return On Assets of 3.76% is fine compared to the rest of the industry. FCX outperforms 69.48% of its industry peers.
- The Return On Equity of FCX (11.56%) is better than 79.22% of its industry peers.
- FCX's Return On Invested Capital of 8.04% is fine compared to the rest of the industry. FCX outperforms 72.08% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FCX is in line with the industry average of 10.32%.
| 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
- The Profit Margin of FCX (8.43%) is better than 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.
- With a decent Gross Margin value of 28.16%, FCX is doing good in the industry, outperforming 64.94% of the companies in the same industry.
- FCX's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FCX is destroying value.
- The number of shares outstanding for FCX remains at a similar level compared to 1 year ago.
- The number of shares outstanding for FCX has been reduced compared to 5 years ago.
- Compared to 1 year ago, FCX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.39 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- FCX's Altman-Z score of 2.39 is on the low side compared to the rest of the industry. FCX is outperformed by 68.83% of its industry peers.
- FCX has a debt to FCF ratio of 6.40. This is a slightly negative value and a sign of low solvency as FCX would need 6.40 years to pay back of all of its debts.
- FCX has a better Debt to FCF ratio (6.40) than 66.23% of its industry peers.
- FCX has a Debt/Equity ratio of 0.53. This is a neutral value indicating FCX is somewhat dependend on debt financing.
- FCX has a worse Debt to Equity ratio (0.53) than 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.78
WACC10.3%
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's Quick ratio of 1.05 is on the low side compared to the rest of the industry. FCX is outperformed by 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.
- Measured over the past years, FCX shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.51% on average per year.
- Looking at the last year, FCX shows a small growth in Revenue. The Revenue has grown by 1.81% in the last year.
- The Revenue has been growing by 12.79% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 3.82% on average over the next years.
- The Revenue is expected to grow by 4.76% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- FCX is valuated quite expensively with a Price/Earnings ratio of 36.36.
- Based on the Price/Earnings ratio, FCX is valued a bit cheaper than 70.78% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FCX to the average of the S&P500 Index (28.60), we can say FCX is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 25.43, the valuation of FCX can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as FCX.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. FCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
- FCX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FCX is cheaper than 80.52% 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 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.3 | ||
| EV/EBITDA | 11.05 |
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.
- The decent profitability rating of FCX may justify a higher PE ratio.
- A more expensive valuation may be justified as FCX's earnings are expected to grow with 19.85% in the coming years.
PEG (NY)0.85
PEG (5Y)1.37
EPS Next 2Y35.34%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
- FCX has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.02, FCX pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.98, FCX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- On average, the dividend of FCX grows each year by 64.36%, 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)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.
- FCX's earnings are growing slower than its dividend. 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 5 / 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.