FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
62.87 USD
+1.7 (+2.78%)
63.49 USD
+0.62 (+0.99%)
FCX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. FCX scores excellent on profitability, but 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.
- In the past 5 years FCX has always been profitable.
- FCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.76%, FCX is doing good in the industry, outperforming 69.48% of the companies in the same industry.
- 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
- FCX has a Profit Margin of 8.43%. This is in the better half 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.
- FCX has a Gross Margin of 28.16%. This is in the better half of the industry: FCX outperforms 64.94% of its industry peers.
- 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.
- 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
- An Altman-Z score of 2.35 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- FCX has a worse Altman-Z score (2.35) than 67.53% 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.
- With a decent Debt to FCF ratio value of 6.40, FCX is doing good in 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 has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: FCX underperforms 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.78
WACC10.28%
2.3 Liquidity
- A Current Ratio of 2.29 indicates that FCX has no problem at all paying its short term obligations.
- FCX has a Current ratio of 2.29. This is comparable to the rest of the industry: FCX outperforms 49.35% of its industry peers.
- 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
- FCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.05%, which is quite good.
- The Earnings Per Share has been growing by 26.51% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 1.81% in the past 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
- Based on estimates for the next years, FCX will show a small growth in Earnings Per Share. The EPS will grow by 3.82% on average per year.
- FCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
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.
- 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
- Based on the Price/Earnings ratio of 35.93, the valuation of FCX can be described as expensive.
- 71.43% of the companies in the same industry are more expensive than FCX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, FCX is valued a bit more expensive.
- A Price/Forward Earnings ratio of 25.13 indicates a quite expensive valuation of FCX.
- FCX's Price/Forward Earnings ratio is in line with the industry average.
- FCX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 25.13 |
4.2 Price Multiples
- 81.82% of the companies in the same industry are more expensive than FCX, based on the Enterprise Value to EBITDA ratio.
- 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 | 55.62 | ||
| EV/EBITDA | 10.77 |
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)0.84
PEG (5Y)1.36
EPS Next 2Y35.34%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.99%, FCX is not a good candidate for dividend investing.
- 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 0.99, FCX pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
- The dividend of FCX is nicely growing with an annual growth rate of 64.36%!
- 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 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.