FREEPORT-MCMORAN INC (FPMB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FPMB - US35671D8570 - Common Stock
53.6 EUR
+1.22 (+2.33%)
Overall FPMB gets a fundamental rating of 4 out of 10. We evaluated FPMB against 45 industry peers in the Metals & Mining industry. FPMB has only an average score on both its financial health and profitability. FPMB has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year FPMB was profitable.
- In the past year FPMB had a positive cash flow from operations.
- FPMB had positive earnings in 4 of the past 5 years.
- FPMB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- FPMB's Return On Assets of 3.61% is in line compared to the rest of the industry. FPMB outperforms 51.11% of its industry peers.
- The Return On Equity of FPMB (10.99%) is comparable to the rest of the industry.
- The Return On Invested Capital of FPMB (8.53%) is better than 64.44% of its industry peers.
- FPMB had an Average Return On Invested Capital over the past 3 years of 9.07%. This is in line with the industry average of 8.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 10.99% | ||
| ROIC | 8.53% |
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
- With a decent Profit Margin value of 7.90%, FPMB is doing good in the industry, outperforming 62.22% of the companies in the same industry.
- In the last couple of years the Profit Margin of FPMB has declined.
- Looking at the Operating Margin, with a value of 26.78%, FPMB is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- FPMB's Operating Margin has improved in the last couple of years.
- FPMB's Gross Margin of 29.63% is in line compared to the rest of the industry. FPMB outperforms 53.33% of its industry peers.
- In the last couple of years the Gross Margin of FPMB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.78% | ||
| PM (TTM) | 7.9% | ||
| GM | 29.63% |
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
- FPMB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- There is no outstanding debt for FPMB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- FPMB has an Altman-Z score of 2.47. This is not the best score and indicates that FPMB is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.47, FPMB perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
- FPMB has a debt to FCF ratio of 4.44. This is a neutral value as FPMB would need 4.44 years to pay back of all of its debts.
- The Debt to FCF ratio of FPMB (4.44) is better than 64.44% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that FPMB is not too dependend on debt financing.
- The Debt to Equity ratio of FPMB (0.48) is worse than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.85
WACC10.03%
2.3 Liquidity
- FPMB has a Current Ratio of 2.45. This indicates that FPMB is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.45, FPMB is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that FPMB should not have too much problems paying its short term obligations.
- FPMB has a Quick ratio (1.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- FPMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.05%, which is quite good.
- The Earnings Per Share has been growing by 26.51% on average over the past years. This is a very strong growth
EPS 1Y (TTM)19.05%
EPS 3Y-10.37%
EPS 5Y26.51%
EPS Q2Q%51.61%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.52%
3.2 Future
- Based on estimates for the next years, FPMB will show a small growth in Earnings Per Share. The EPS will grow by 3.82% on average per year.
- Based on estimates for the next years, FPMB will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- FPMB is valuated quite expensively with a Price/Earnings ratio of 36.46.
- FPMB's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, FPMB is valued a bit more expensive.
- The Price/Forward Earnings ratio is 25.56, which means the current valuation is very expensive for FPMB.
- FPMB's Price/Forward Earnings is on the same level as the industry average.
- FPMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 25.56 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FPMB is on the same level as its industry peers.
- FPMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.82 | ||
| EV/EBITDA | 10.23 |
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.
- A more expensive valuation may be justified as FPMB's earnings are expected to grow with 19.85% in the coming years.
PEG (NY)0.85
PEG (5Y)1.38
EPS Next 2Y35.34%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
- FPMB has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
- FPMB's Dividend Yield is a higher than the industry average which is at 1.67.
- With a Dividend Yield of 1.02, FPMB pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
- The dividend of FPMB is nicely growing with an annual growth rate of 24.59%!
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 42.13% of the earnings are spent on dividend by FPMB. This is a bit on the high side, but may be sustainable.
- FPMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP42.13%
EPS Next 2Y35.34%
EPS Next 3Y19.85%
FREEPORT-MCMORAN INC / FPMB.DE FAQ
What is the ChartMill fundamental rating of FREEPORT-MCMORAN INC (FPMB.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FPMB.DE.
What is the valuation status for FPMB stock?
ChartMill assigns a valuation rating of 3 / 10 to FREEPORT-MCMORAN INC (FPMB.DE). This can be considered as Overvalued.
How profitable is FREEPORT-MCMORAN INC (FPMB.DE) stock?
FREEPORT-MCMORAN INC (FPMB.DE) has a profitability rating of 5 / 10.
Can you provide the financial health for FPMB stock?
The financial health rating of FREEPORT-MCMORAN INC (FPMB.DE) is 5 / 10.
How sustainable is the dividend of FREEPORT-MCMORAN INC (FPMB.DE) stock?
The dividend rating of FREEPORT-MCMORAN INC (FPMB.DE) is 4 / 10 and the dividend payout ratio is 42.13%.