FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
NYSE:FCX - New York Stock Exchange, Inc. - US35671D8570 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FCX had positive earnings in the past year.
In the past year FCX had a positive cash flow from operations.
In the past 5 years FCX has always been profitable.
In the past 5 years FCX always reported a positive cash flow from operatings.
1.2 Ratios
FCX has a Return On Assets of 3.12%. This is in the better half of the industry: FCX outperforms 70.13% of its industry peers.
FCX has a better Return On Equity (9.89%) than 77.27% of its industry peers.
FCX has a Return On Invested Capital of 8.26%. This is in the better half of the industry: FCX outperforms 75.97% of its industry peers.
FCX had an Average Return On Invested Capital over the past 3 years of 9.07%. This is below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.89% | ||
| ROIC | 8.26% |
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 (7.04%) is better than 75.97% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
Looking at the Operating Margin, with a value of 26.48%, FCX belongs to the top of the industry, outperforming 80.52% of the companies in the same industry.
In the last couple of years the Operating Margin of FCX has grown nicely.
With a decent Gross Margin value of 29.30%, FCX is doing good in the industry, outperforming 66.88% of the companies in the same industry.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.48% | ||
| PM (TTM) | 7.04% | ||
| GM | 29.3% |
OM growth 3Y-9.21%
OM growth 5Y42.43%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y28.05%
2. Health
2.1 Basic Checks
FCX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FCX has about the same amount of shares outstanding.
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 1.99 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, FCX is in line with its industry, outperforming 44.16% of the companies in the same industry.
The Debt to FCF ratio of FCX is 4.67, which is a neutral value as it means it would take FCX, 4.67 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.67, FCX is doing good in the industry, outperforming 68.83% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FCX is somewhat dependend on debt financing.
FCX has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: FCX underperforms 79.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.99
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.32 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.32) which is comparable to the rest of the industry.
FCX has a Quick Ratio of 1.13. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
FCX's Quick ratio of 1.13 is on the low side compared to the rest of the industry. FCX is outperformed by 61.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.51% over the past year.
The Earnings Per Share has been growing by 136.19% on average over the past years. This is a very strong growth
FCX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.52%.
The Revenue has been growing by 12.07% on average over the past years. This is quite good.
EPS 1Y (TTM)4.51%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%-25%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%-9.38%
3.2 Future
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.16% yearly.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y12.53%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
EPS Next 5Y3.16%
Revenue Next Year4.4%
Revenue Next 2Y6.14%
Revenue Next 3Y5.57%
Revenue Next 5Y2.17%
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
Based on the Price/Earnings ratio of 31.19, the valuation of FCX can be described as expensive.
62.99% of the companies in the same industry are more expensive than FCX, based on the Price/Earnings ratio.
FCX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.98.
The Price/Forward Earnings ratio is 19.37, which indicates a rather expensive current valuation of FCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FCX to the average of the S&P500 Index (21.49), we can say FCX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 19.37 |
4.2 Price Multiples
FCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FCX is cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than the industry average as 74.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.91 | ||
| EV/EBITDA | 7.82 |
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 24.41% in the coming years.
PEG (NY)2.49
PEG (5Y)0.23
EPS Next 2Y23.4%
EPS Next 3Y24.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, FCX has a reasonable but not impressive dividend return.
FCX's Dividend Yield is a higher than the industry average which is at 2.98.
With a Dividend Yield of 1.35, FCX pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
On average, the dividend of FCX grows each year by 24.59%, which is quite nice.
FCX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.43% of the earnings are spent on dividend by FCX. 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.
DP49.43%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
43.35
-0.52 (-1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.52%
Inst Owner Change1.04%
Ins Owners0.65%
Ins Owner Change2.59%
Market Cap62.26B
Analysts78.4
Price Target47.51 (9.6%)
Short Float %1.47%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP49.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.37%
Min EPS beat(2)-0.22%
Max EPS beat(2)50.97%
EPS beat(4)3
Avg EPS beat(4)18.94%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)16.95%
EPS beat(12)10
Avg EPS beat(12)13.32%
EPS beat(16)13
Avg EPS beat(16)11.36%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)3.51%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)9.43%
Revenue beat(8)6
Avg Revenue beat(8)4.19%
Revenue beat(12)9
Avg Revenue beat(12)2.38%
Revenue beat(16)10
Avg Revenue beat(16)1.34%
PT rev (1m)1.45%
PT rev (3m)-3.62%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)5.43%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 19.37 | ||
| P/S | 2.5 | ||
| P/FCF | 30.91 | ||
| P/OCF | 9.85 | ||
| P/B | 3.52 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)1.39
EY3.21%
EPS(NY)2.24
Fwd EY5.16%
FCF(TTM)1.4
FCFY3.23%
OCF(TTM)4.4
OCFY10.15%
SpS17.31
BVpS12.32
TBVpS12.32
PEG (NY)2.49
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.89% | ||
| ROCE | 13.15% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 9.05% | ||
| OM | 26.48% | ||
| PM (TTM) | 7.04% | ||
| GM | 29.3% | ||
| FCFM | 8.1% |
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%
ROICexcg growth 3Y-14.57%
ROICexcg growth 5Y51.91%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y52%
OM growth 3Y-9.21%
OM growth 5Y42.43%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y28.05%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.67 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 203.98% | ||
| Cap/Sales | 17.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.7% | ||
| Profit Quality | 115.09% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.99 |
F-Score7
WACC8.33%
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)4.51%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%-25%
EPS Next Y12.53%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
EPS Next 5Y3.16%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%-9.38%
Revenue Next Year4.4%
Revenue Next 2Y6.14%
Revenue Next 3Y5.57%
Revenue Next 5Y2.17%
EBIT growth 1Y3.17%
EBIT growth 3Y-5.88%
EBIT growth 5Y59.61%
EBIT Next Year47.7%
EBIT Next 3Y24.91%
EBIT Next 5Y5.4%
FCF growth 1Y151.12%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y40.55%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%