FREEPORT-MCMORAN INC (FCX)
US35671D8570 - Common Stock
Overall FCX gets a fundamental rating of 5 out of 10. We evaluated FCX against 155 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. While showing a medium growth rate, FCX is valued expensive at the moment.
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
FCX has a Return On Assets of 3.50%. This is in the better half of the industry: FCX outperforms 69.03% of its industry peers.
Looking at the Return On Equity, with a value of 11.00%, FCX belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
FCX's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. FCX outperforms 78.71% of its industry peers.
FCX had an Average Return On Invested Capital over the past 3 years of 10.49%. This is in line with the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11% | ||
| ROIC | 8.73% |
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 8.04%, FCX is doing good in the industry, outperforming 74.19% of the companies in the same industry.
In the last couple of years the Profit Margin of FCX has declined.
FCX has a better Operating Margin (27.78%) than 87.10% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
FCX's Gross Margin of 31.33% is fine compared to the rest of the industry. FCX outperforms 76.77% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.78% | ||
| PM (TTM) | 8.04% | ||
| GM | 31.33% |
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.
FCX has a better debt/assets ratio than last year.
2.2 Solvency
FCX has an Altman-Z score of 2.17. 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 2.17, FCX perfoms like the industry average, outperforming 43.23% of the companies in the same industry.
The Debt to FCF ratio of FCX is 14.38, which is on the high side as it means it would take FCX, 14.38 years of fcf income to pay off all of its debts.
FCX has a better Debt to FCF ratio (14.38) than 65.16% of its industry peers.
FCX has a Debt/Equity ratio of 0.52. This is a neutral value indicating FCX is somewhat dependend on debt financing.
FCX has a Debt to Equity ratio of 0.52. This is amonst the worse of the industry: FCX underperforms 81.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 14.38 | ||
| Altman-Z | 2.17 |
ROIC/WACC1.04
WACC8.43%
2.3 Liquidity
FCX has a Current Ratio of 2.42. This indicates that FCX is financially healthy and has no problem in meeting its short term obligations.
FCX has a Current ratio (2.42) which is comparable to the rest of the industry.
FCX has a Quick Ratio of 1.38. 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 (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for FCX have decreased strongly by -37.04% in the last year.
The Earnings Per Share has been growing slightly by 0.40% on average over the past years.
Looking at the last year, FCX shows a small growth in Revenue. The Revenue has grown by 0.33% in the last year.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)-37.04%
EPS 3Y41.5%
EPS 5Y0.4%
EPS growth Q2Q-48.08%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Revenue growth Q2Q2.55%
3.2 Future
FCX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.02% yearly.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y5.35%
EPS Next 2Y19.41%
EPS Next 3Y17.63%
EPS Next 5Y14.02%
Revenue Next Year4.16%
Revenue Next 2Y5.31%
Revenue Next 3Y3.63%
Revenue Next 5Y7.1%
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
The Price/Earnings ratio is 32.78, which means the current valuation is very expensive for FCX.
61.29% of the companies in the same industry are more expensive than FCX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.80, FCX is valued a bit more expensive.
FCX is valuated quite expensively with a Price/Forward Earnings ratio of 31.12.
FCX's Price/Forward Earnings is on the same level as the industry average.
FCX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.78 | ||
| Fwd PE | 31.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 66.45% 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 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.85 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FCX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FCX may justify a higher PE ratio.
FCX's earnings are expected to grow with 17.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.13
PEG (5Y)82.61
EPS Next 2Y19.41%
EPS Next 3Y17.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, FCX has a reasonable but not impressive dividend return.
FCX's Dividend Yield is a higher than the industry average which is at 2.87.
With a Dividend Yield of 1.18, FCX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of FCX grows each year by 31.97%, which is quite nice.
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 Years0
Div Non Decr Years3
5.3 Sustainability
46.98% 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.
DP46.98%
EPS Next 2Y19.41%
EPS Next 3Y17.63%
FREEPORT-MCMORAN INC
NYSE:FCX (4/18/2024, 7:04:00 PM)
Premarket: 50.21 +0.05 (+0.1%)50.16
+0.34 (+0.68%)
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 Cap71.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.78 | ||
| Fwd PE | 31.12 | ||
| 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)6.13
PEG (5Y)82.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.78% | ||
| PM (TTM) | 8.04% | ||
| GM | 31.33% | ||
| 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 | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.38 | ||
| 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)
Growth
EPS 1Y (TTM)-37.04%
EPS 3Y41.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y
Revenue growth 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