FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
62.985 USD
+0.12 (+0.18%)
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 has a great profitability rating, 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
- FCX had positive earnings in the past year.
- 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
- 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 has a better Return On Invested Capital (8.04%) than 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 better Profit Margin (8.43%) than 73.38% of its industry peers.
- In the last couple of years the Profit Margin of FCX has grown nicely.
- With a decent Operating Margin value of 25.16%, FCX is doing good in the industry, outperforming 74.03% of the companies in the same industry.
- In the last couple of years the Operating Margin of FCX has grown nicely.
- Looking at the Gross Margin, with a value of 28.16%, FCX is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
- 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.
- FCX has about the same amout of shares outstanding than it did 1 year ago.
- FCX has less shares outstanding than it did 5 years ago.
- FCX has a worse debt/assets ratio than last year.
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 has a worse Altman-Z score (2.39) than 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 Debt to FCF ratio of 6.40. This is in the better half of the industry: FCX outperforms 66.23% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that FCX is somewhat dependend on debt financing.
- The Debt to Equity ratio of FCX (0.53) is worse 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
WACC10.28%
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.
- With a Current ratio value of 2.29, FCX perfoms like the industry average, outperforming 49.35% of the companies in the same industry.
- FCX has a Quick Ratio of 1.05. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.05, FCX is doing worse than 66.23% of the companies in the same industry.
| 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.
- FCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.51% yearly.
- 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
- 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
- With a Price/Earnings ratio of 35.99, FCX can be considered very expensive at the moment.
- 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's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.82.
- With a Price/Forward Earnings ratio of 25.18, FCX can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as FCX.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, FCX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 25.18 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 73.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.73 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as FCX's earnings are expected to grow with 19.85% in the coming years.
PEG (NY)0.84
PEG (5Y)1.36
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.
- FCX's Dividend Yield is a higher than the industry average which is at 1.02.
- Compared to an average S&P500 Dividend Yield of 1.82, FCX's dividend is way lower than the S&P500 average.
| 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 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.