FREEPORT-MCMORAN INC (FCX)
US35671D8570 - Common Stock
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 155 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FCX had positive earnings in the past year.
FCX had a positive operating cash flow in the past year.
FCX had positive earnings in 4 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 3.58%, FCX is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
With an excellent Return On Equity value of 11.31%, FCX belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
FCX has a Return On Invested Capital of 9.75%. This is amongst the best in the industry. FCX outperforms 84.46% of its industry peers.
FCX had an Average Return On Invested Capital over the past 3 years of 10.49%. This is in line with the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 11.31% | ||
| ROIC | 9.75% |
ROA(3y)6.41%
ROA(5y)4.01%
ROE(3y)21.35%
ROE(5y)13.46%
ROIC(3y)10.49%
ROIC(5y)7.26%
1.3 Margins
FCX has a better Profit Margin (7.74%) than 77.70% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
FCX has a better Operating Margin (29.10%) than 88.51% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
The Gross Margin of FCX (31.95%) is better than 73.65% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.1% | ||
| PM (TTM) | 7.74% | ||
| GM | 31.95% |
OM growth 3Y21.08%
OM growth 5Y2.54%
PM growth 3Y24.29%
PM growth 5Y-10.39%
GM growth 3Y17.94%
GM growth 5Y2.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FCX is destroying value.
FCX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FCX has less shares outstanding
The debt/assets ratio for FCX has been reduced compared to a year ago.
2.2 Solvency
FCX has an Altman-Z score of 1.94. 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.
FCX has a Altman-Z score of 1.94. This is comparable to the rest of the industry: FCX outperforms 40.54% of its industry peers.
FCX has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as FCX would need 3.99 years to pay back of all of its debts.
FCX has a Debt to FCF ratio of 3.99. This is in the better half of the industry: FCX outperforms 68.92% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that FCX is somewhat dependend on debt financing.
FCX has a worse Debt to Equity ratio (0.51) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.92
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.33 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.33) which is in line with its industry peers.
FCX has a Quick Ratio of 1.30. 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 1.30 is in line compared to the rest of the industry. FCX outperforms 44.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for FCX have decreased strongly by -19.66% in the last year.
FCX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.40% yearly.
The Revenue has grown by 12.91% in the past year. This is quite good.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)-19.66%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%16.59%
3.2 Future
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.39% yearly.
FCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% yearly.
EPS Next Y0.83%
EPS Next 2Y17.64%
EPS Next 3Y22.01%
EPS Next 5Y2.39%
Revenue Next Year13.61%
Revenue Next 2Y9.48%
Revenue Next 3Y8.82%
Revenue Next 5Y5.09%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.53, which means the current valuation is very expensive for FCX.
FCX's Price/Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 60.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of FCX to the average of the S&P500 Index (27.17), we can say FCX is valued inline with the index average.
The Price/Forward Earnings ratio is 17.92, which indicates a rather expensive current valuation of FCX.
The rest of the industry has a similar Price/Forward Earnings ratio as FCX.
FCX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 17.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than the industry average as 77.70% of the companies are valued more expensively.
72.30% 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 | 22.45 | ||
| EV/EBITDA | 6.09 |
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.
The decent profitability rating of FCX may justify a higher PE ratio.
FCX's earnings are expected to grow with 22.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)31.93
PEG (5Y)66.86
EPS Next 2Y17.64%
EPS Next 3Y22.01%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.53%.
In the last 3 months the price of FCX has falen by -24.67%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
FCX's Dividend Yield is a higher than the industry average which is at 3.23.
Compared to the average S&P500 Dividend Yield of 2.30, FCX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
FCX has paid a dividend for at least 10 years, which is a reliable track record.
FCX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)31.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
43.58% 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.
DP43.58%
EPS Next 2Y17.64%
EPS Next 3Y22.01%
FREEPORT-MCMORAN INC
NYSE:FCX (1/2/2025, 2:24:07 PM)
37.94
-0.14 (-0.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.1%
Inst Owner Change1.07%
Ins Owners0.63%
Ins Owner Change-0.33%
Market Cap54.52B
Analysts79.29
Price Target55.55 (46.42%)
Short Float %1.72%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Dividend Growth(5Y)31.97%
DP43.58%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.51%
Min EPS beat(2)6.69%
Max EPS beat(2)18.32%
EPS beat(4)4
Avg EPS beat(4)17.22%
Min EPS beat(4)6.69%
Max EPS beat(4)22.96%
EPS beat(8)8
Avg EPS beat(8)13.77%
EPS beat(12)10
Avg EPS beat(12)10.12%
EPS beat(16)13
Avg EPS beat(16)8.22%
Revenue beat(2)2
Avg Revenue beat(2)6.68%
Min Revenue beat(2)3.92%
Max Revenue beat(2)9.43%
Revenue beat(4)3
Avg Revenue beat(4)5.95%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)10.58%
Revenue beat(8)7
Avg Revenue beat(8)4.86%
Revenue beat(12)9
Avg Revenue beat(12)1.98%
Revenue beat(16)10
Avg Revenue beat(16)1.54%
PT rev (1m)-1.98%
PT rev (3m)0.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.15%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 17.92 | ||
| P/S | 2.13 | ||
| P/FCF | 22.45 | ||
| P/OCF | 7.74 | ||
| P/B | 3.11 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)1.43
EY3.77%
EPS(NY)2.12
Fwd EY5.58%
FCF(TTM)1.69
FCFY4.45%
OCF(TTM)4.9
OCFY12.92%
SpS17.84
BVpS12.21
TBVpS12.21
PEG (NY)31.93
PEG (5Y)66.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 11.31% | ||
| ROCE | 15.18% | ||
| ROIC | 9.75% | ||
| ROICexc | 10.85% | ||
| ROICexgc | 10.85% | ||
| OM | 29.1% | ||
| PM (TTM) | 7.74% | ||
| GM | 31.95% | ||
| FCFM | 9.47% |
ROA(3y)6.41%
ROA(5y)4.01%
ROE(3y)21.35%
ROE(5y)13.46%
ROIC(3y)10.49%
ROIC(5y)7.26%
ROICexc(3y)12.56%
ROICexc(5y)8.59%
ROICexgc(3y)12.71%
ROICexgc(5y)8.69%
ROCE(3y)16.33%
ROCE(5y)11.3%
ROICexcg growth 3Y33.63%
ROICexcg growth 5Y2.81%
ROICexc growth 3Y33.69%
ROICexc growth 5Y2.84%
OM growth 3Y21.08%
OM growth 5Y2.54%
PM growth 3Y24.29%
PM growth 5Y-10.39%
GM growth 3Y17.94%
GM growth 5Y2.82%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.99 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 201.31% | ||
| Cap/Sales | 18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.22% | ||
| Profit Quality | 122.32% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.94 |
F-Score7
WACC10.57%
ROIC/WACC0.92
Cap/Depr(3y)164.55%
Cap/Depr(5y)161.96%
Cap/Sales(3y)14.68%
Cap/Sales(5y)15.25%
Profit Quality(3y)72.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.66%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%-2.56%
EPS Next Y0.83%
EPS Next 2Y17.64%
EPS Next 3Y22.01%
EPS Next 5Y2.39%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%16.59%
Revenue Next Year13.61%
Revenue Next 2Y9.48%
Revenue Next 3Y8.82%
Revenue Next 5Y5.09%
EBIT growth 1Y22.84%
EBIT growth 3Y41.9%
EBIT growth 5Y6.82%
EBIT Next Year61.76%
EBIT Next 3Y29%
EBIT Next 5Y12.05%
FCF growth 1Y-24.43%
FCF growth 3Y-14.72%
FCF growth 5Y-19.12%
OCF growth 1Y10.93%
OCF growth 3Y20.5%
OCF growth 5Y6.45%