FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - NYSE:FCX - US35671D8570 - Common Stock
45.09 USD
-0.21 (-0.46%)
45.09 USD
0 (0%)
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 156 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's Return On Assets of 3.37% is fine compared to the rest of the industry. FCX outperforms 71.15% of its industry peers.
FCX has a better Return On Equity (10.47%) than 79.49% of its industry peers.
FCX has a Return On Invested Capital of 8.58%. This is in the better half of the industry: FCX outperforms 77.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FCX is below the industry average of 12.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.47% | ||
| ROIC | 8.58% |
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
FCX has a better Profit Margin (7.38%) than 74.36% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
FCX has a better Operating Margin (26.96%) than 80.13% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.73%, FCX is doing good in the industry, outperforming 67.31% 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 | 26.96% | ||
| PM (TTM) | 7.38% | ||
| GM | 29.73% |
OM growth 3Y-9.21%
OM growth 5Y41.84%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y27.78%
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.
The number of shares outstanding for FCX has been reduced compared to 5 years ago.
The debt/assets ratio for FCX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.07 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.07, FCX is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
FCX has a debt to FCF ratio of 4.33. This is a neutral value as FCX would need 4.33 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.33, FCX is doing good in the industry, outperforming 71.15% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that FCX is not too dependend on debt financing.
FCX has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: FCX underperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.96
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.47 indicates that FCX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.47, FCX is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that FCX should not have too much problems paying its short term obligations.
The Quick ratio of FCX (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.08% over the past year.
FCX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 136.19% yearly.
The Revenue has been growing slightly by 4.64% in the past year.
Measured over the past years, FCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.07% on average per year.
EPS 1Y (TTM)2.08%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%17.39%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%14.46%
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 2.48% on average per year.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y25.29%
EPS Next 2Y36.17%
EPS Next 3Y26.54%
EPS Next 5Y2.48%
Revenue Next Year6.53%
Revenue Next 2Y8.96%
Revenue Next 3Y6.79%
Revenue Next 5Y2.04%
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
The Price/Earnings ratio is 30.67, which means the current valuation is very expensive for FCX.
Compared to the rest of the industry, the Price/Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 68.59% of the companies listed in the same industry.
FCX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.54, FCX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 62.82% of the companies listed in the same industry.
FCX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FCX indicates a rather cheap valuation: FCX is cheaper than 83.97% of the companies listed in the same industry.
FCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FCX is cheaper than 74.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.28 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 26.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)0.23
EPS Next 2Y36.17%
EPS Next 3Y26.54%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 2.51, FCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.31, FCX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 24.59%!
FCX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.38% 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.
DP45.38%
EPS Next 2Y36.17%
EPS Next 3Y26.54%
45.09
-0.21 (-0.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.73%
Inst Owner Change-2.34%
Ins Owners0.65%
Ins Owner Change0.31%
Market Cap64.74B
Analysts76.92
Price Target51.78 (14.84%)
Short Float %1.62%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP45.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.8%
Min EPS beat(2)-0.22%
Max EPS beat(2)17.82%
EPS beat(4)3
Avg EPS beat(4)18.82%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)19.02%
EPS beat(12)11
Avg EPS beat(12)15.34%
EPS beat(16)13
Avg EPS beat(16)12.42%
Revenue beat(2)2
Avg Revenue beat(2)4.14%
Min Revenue beat(2)3.99%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)4.3%
Revenue beat(8)6
Avg Revenue beat(8)4.37%
Revenue beat(12)10
Avg Revenue beat(12)3.76%
Revenue beat(16)11
Avg Revenue beat(16)1.67%
PT rev (1m)-0.62%
PT rev (3m)9.9%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)1.81%
EPS NY rev (3m)17.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.67 | ||
| Fwd PE | 16.54 | ||
| P/S | 2.51 | ||
| P/FCF | 30.28 | ||
| P/OCF | 9.87 | ||
| P/B | 3.56 | ||
| P/tB | 3.56 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)1.47
EY3.26%
EPS(NY)2.73
Fwd EY6.05%
FCF(TTM)1.49
FCFY3.3%
OCF(TTM)4.57
OCFY10.13%
SpS17.98
BVpS12.68
TBVpS12.68
PEG (NY)1.21
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.47% | ||
| ROCE | 13.66% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.41% | ||
| OM | 26.96% | ||
| PM (TTM) | 7.38% | ||
| GM | 29.73% | ||
| FCFM | 8.28% |
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 5Y51.28%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y51.37%
OM growth 3Y-9.21%
OM growth 5Y41.84%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y27.78%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.33 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 194.76% | ||
| Cap/Sales | 17.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.06% | ||
| Profit Quality | 112.17% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.07 |
F-Score7
WACC8.93%
ROIC/WACC0.96
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)2.08%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%17.39%
EPS Next Y25.29%
EPS Next 2Y36.17%
EPS Next 3Y26.54%
EPS Next 5Y2.48%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%14.46%
Revenue Next Year6.53%
Revenue Next 2Y8.96%
Revenue Next 3Y6.79%
Revenue Next 5Y2.04%
EBIT growth 1Y-0.71%
EBIT growth 3Y-5.88%
EBIT growth 5Y58.95%
EBIT Next Year53.42%
EBIT Next 3Y25.71%
EBIT Next 5Y7.38%
FCF growth 1Y288.02%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y44.2%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%