FREEPORT-MCMORAN INC (FCX)
US35671D8570 - Common Stock
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 157 industry peers in the Metals & Mining industry. While FCX belongs to the best of the industry regarding profitability, 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
In the past year FCX was profitable.
In the past year FCX had a positive cash flow from operations.
Of the past 5 years FCX 4 years were profitable.
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 3.03%, FCX is in the better half of the industry, outperforming 68.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.67%, FCX is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
The Return On Invested Capital of FCX (8.56%) is better than 80.89% 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 8.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 9.67% | ||
| ROIC | 8.56% |
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
With a decent Profit Margin value of 6.90%, FCX is doing good in the industry, outperforming 74.52% of the companies in the same industry.
In the last couple of years the Profit Margin of FCX has declined.
With an excellent Operating Margin value of 26.83%, FCX belongs to the best of the industry, outperforming 87.26% of the companies in the same industry.
FCX's Operating Margin has improved in the last couple of years.
FCX has a Gross Margin of 30.34%. This is in the better half of the industry: FCX outperforms 73.89% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.83% | ||
| PM (TTM) | 6.9% | ||
| GM | 30.34% |
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
FCX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FCX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FCX has been reduced compared to 5 years ago.
Compared to 1 year ago, FCX has an improved debt to assets ratio.
2.2 Solvency
FCX has an Altman-Z score of 2.01. 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.
With a Altman-Z score value of 2.01, FCX perfoms like the industry average, outperforming 41.40% of the companies in the same industry.
The Debt to FCF ratio of FCX is 6.78, which is on the high side as it means it would take FCX, 6.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.78, FCX is in the better half of the industry, outperforming 65.61% of the companies in the same industry.
FCX has a Debt/Equity ratio of 0.51. This is a neutral value indicating FCX is somewhat dependend on debt financing.
FCX has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: FCX underperforms 75.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 6.78 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.06
WACC8.07%
2.3 Liquidity
A Current Ratio of 2.35 indicates that FCX has no problem at all paying its short term obligations.
The Current ratio of FCX (2.35) is comparable to the rest of the industry.
FCX has a Quick Ratio of 1.41. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
FCX has a Quick ratio of 1.41. This is comparable to the rest of the industry: FCX outperforms 48.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for FCX have decreased strongly by -12.73% in the last year.
The Earnings Per Share has been growing slightly by 0.40% on average over the past years.
FCX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.33%.
Measured over the past years, FCX shows a small growth in Revenue. The Revenue has been growing by 4.17% on average per year.
EPS 1Y (TTM)-12.73%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%31.43%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%15.46%
3.2 Future
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.75% yearly.
The Revenue is expected to grow by 6.88% on average over the next years.
EPS Next Y9.4%
EPS Next 2Y22.14%
EPS Next 3Y21.92%
EPS Next 5Y7.75%
Revenue Next Year11.38%
Revenue Next 2Y7.82%
Revenue Next 3Y4.62%
Revenue Next 5Y6.88%
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 accelerating.
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
A Price/Earnings ratio of 31.25 indicates a quite expensive valuation of FCX.
FCX's Price/Earnings ratio is in line with the industry average.
FCX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.41.
Based on the Price/Forward Earnings ratio of 19.71, the valuation of FCX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FCX.
FCX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
FCX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FCX is cheaper than 68.79% 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 66.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.51 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 21.92% in the coming years.
PEG (NY)3.32
PEG (5Y)78.75
EPS Next 2Y22.14%
EPS Next 3Y21.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, FCX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.66, FCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, FCX pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
FCX has been paying a dividend for at least 10 years, so it has 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
FCX pays out 52.62% of its income as dividend. 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.
DP52.62%
EPS Next 2Y22.14%
EPS Next 3Y21.92%
FREEPORT-MCMORAN INC
NYSE:FCX (7/26/2024, 7:04:00 PM)
After market: 44.99 -0.01 (-0.02%)45
+0.47 (+1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap64.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.25 | ||
| Fwd PE | 19.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.32
PEG (5Y)78.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 9.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.83% | ||
| PM (TTM) | 6.9% | ||
| GM | 30.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-12.73%
EPS 3Y41.5%
EPS 5Y
EPS Q2Q%
EPS Next Y9.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y