FREEPORT-MCMORAN INC (FCX)

US35671D8570 - Common Stock

46.36  -2.22 (-4.57%)

After market: 46.1516 -0.21 (-0.45%)

Fundamental Rating

5

Taking everything into account, FCX scores 5 out of 10 in our fundamental rating. FCX was compared to 157 industry peers in the Metals & Mining industry. FCX scores excellent on profitability, but there are some minor concerns on its financial health. FCX has a correct valuation and a medium growth rate.



7

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.
FCX had positive earnings in 4 of the past 5 years.
FCX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.59%, FCX is in the better half of the industry, outperforming 70.70% of the companies in the same industry.
The Return On Equity of FCX (11.35%) is better than 80.25% of its industry peers.
FCX has a better Return On Invested Capital (9.72%) than 85.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FCX is above the industry average of 8.19%.
Industry RankSector Rank
ROA 3.59%
ROE 11.35%
ROIC 9.72%
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

FCX's Profit Margin of 7.77% is fine compared to the rest of the industry. FCX outperforms 76.43% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 29.03%, FCX belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
In the last couple of years the Operating Margin of FCX has grown nicely.
The Gross Margin of FCX (31.95%) is better than 74.52% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 29.03%
PM (TTM) 7.77%
GM 31.95%
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%

5

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.
The number of shares outstanding for FCX has been increased compared to 1 year ago.
FCX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FCX has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.13 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FCX's Altman-Z score of 2.13 is on the low side compared to the rest of the industry. FCX is outperformed by 61.15% of its industry peers.
FCX has a debt to FCF ratio of 3.99. This is a good value and a sign of high solvency as FCX would need 3.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.99, FCX is in the better half of the industry, outperforming 72.61% 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 worse Debt to Equity ratio (0.51) than 78.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 3.99
Altman-Z 2.13
ROIC/WACC1.03
WACC9.45%

2.3 Liquidity

A Current Ratio of 2.33 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.33) which is in line with its industry peers.
FCX has a Quick Ratio of 1.30. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, FCX perfoms like the industry average, outperforming 43.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.33
Quick Ratio 1.3

4

3. Growth

3.1 Past

The earnings per share for FCX have decreased strongly by -19.66% in the last year.
FCX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.40% yearly.
The Revenue has grown by 12.91% in the past year. This is quite good.
FCX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.17% yearly.
EPS 1Y (TTM)-19.66%
EPS 3Y41.5%
EPS 5Y0.4%
EPS Q2Q%-2.56%
Revenue 1Y (TTM)12.91%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Sales Q2Q%16.59%

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.
FCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.88% yearly.
EPS Next Y0.43%
EPS Next 2Y19.39%
EPS Next 3Y21.86%
EPS Next 5Y7.75%
Revenue Next Year13.59%
Revenue Next 2Y10.02%
Revenue Next 3Y9.19%
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

4. Valuation

4.1 Price/Earnings Ratio

FCX is valuated quite expensively with a Price/Earnings ratio of 32.42.
FCX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.17. FCX is around the same levels.
With a Price/Forward Earnings ratio of 21.26, FCX is valued on the expensive side.
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 23.71, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.42
Fwd PE 21.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than the industry average as 78.34% of the companies are valued more expensively.
FCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FCX is cheaper than 71.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.44
EV/EBITDA 7.32

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 21.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)76.28
PEG (5Y)81.69
EPS Next 2Y19.39%
EPS Next 3Y21.86%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.24%, FCX has a reasonable but not impressive dividend return.
FCX's Dividend Yield is a higher than the industry average which is at 2.76.
With a Dividend Yield of 1.24, FCX pays less dividend than the S&P500 average, which is at 2.21.
Industry RankSector Rank
Dividend Yield 1.24%

5.2 History

The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
FCX has paid a dividend for at least 10 years, which is 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

43.45% 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.
DP43.45%
EPS Next 2Y19.39%
EPS Next 3Y21.86%

FREEPORT-MCMORAN INC

NYSE:FCX (11/8/2024, 8:04:00 PM)

After market: 46.1516 -0.21 (-0.45%)

46.36

-2.22 (-4.57%)

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 Cap66.61B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 32.42
Fwd PE 21.26
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)76.28
PEG (5Y)81.69
Profitability
Industry RankSector Rank
ROA 3.59%
ROE 11.35%
ROCE
ROIC
ROICexc
ROICexgc
OM 29.03%
PM (TTM) 7.77%
GM 31.95%
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 Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.33
Quick Ratio 1.3
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)-19.66%
EPS 3Y41.5%
EPS 5Y
EPS Q2Q%
EPS Next Y0.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.91%
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