FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
62.87 USD
+1.7 (+2.78%)
63.2488 USD
+0.38 (+0.6%)
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.
- 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
- FCX has a better Return On Assets (3.76%) than 69.48% of its industry peers.
- 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
- With a decent Profit Margin value of 8.43%, FCX is doing good in the industry, outperforming 73.38% of the companies in the same industry.
- 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's Gross Margin of 28.16% is fine compared to the rest of the industry. FCX outperforms 64.94% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- Compared to 1 year ago, FCX has a worse debt to assets ratio.
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.
- With a Altman-Z score value of 2.35, FCX is not doing good in the industry: 67.53% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of FCX (6.40) is better than 66.23% of its industry peers.
- FCX has a Debt/Equity ratio of 0.53. This is a neutral value indicating FCX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.53, FCX is doing worse than 75.32% of the companies in the same industry.
| 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 (2.29) which is in line with 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
- The Earnings Per Share has grown by an nice 19.05% over the past year.
- The Earnings Per Share has been growing by 26.51% on average over the past years. This is a very strong growth
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 35.93, which means the current valuation is very expensive for FCX.
- 71.43% of the companies in the same industry are more expensive than FCX, based on the Price/Earnings ratio.
- FCX is valuated rather expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- FCX is valuated quite expensively with a Price/Forward Earnings ratio of 25.13.
- FCX's Price/Forward Earnings is on the same level as the industry average.
- FCX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 25.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FCX is valued cheaper than 81.82% of the companies in the same industry.
- 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
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of FCX 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
- With a yearly dividend of 0.99%, FCX is not a good candidate for dividend investing.
- FCX's Dividend Yield is a higher than the industry average which is at 1.02.
- 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
- 39.59% of the earnings are spent on dividend by FCX. This is a low number and 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.