FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
NYSE:FCX - New York Stock Exchange, Inc. - US35671D8570 - Common Stock - Currency: USD
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
In the past year FCX was profitable.
In the past year FCX had a positive cash flow from operations.
In the past 5 years FCX has always been profitable.
In the past 5 years FCX always reported a positive cash flow from operatings.
1.2 Ratios
FCX has a better Return On Assets (3.12%) than 70.13% of its industry peers.
Looking at the Return On Equity, with a value of 9.89%, FCX is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
FCX has a better Return On Invested Capital (8.26%) than 75.97% of its industry peers.
FCX had an Average Return On Invested Capital over the past 3 years of 9.07%. This is below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.89% | ||
| ROIC | 8.26% |
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 7.04%, FCX is doing good in the industry, outperforming 75.97% of the companies in the same industry.
In the last couple of years the Profit Margin of FCX has declined.
Looking at the Operating Margin, with a value of 26.48%, FCX belongs to the top of the industry, outperforming 80.52% of the companies in the same industry.
In the last couple of years the Operating Margin of FCX has grown nicely.
FCX has a better Gross Margin (29.30%) than 66.88% of its industry peers.
In the last couple of years the Gross Margin of FCX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.48% | ||
| PM (TTM) | 7.04% | ||
| GM | 29.3% |
OM growth 3Y-9.21%
OM growth 5Y42.43%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y28.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FCX is creating some 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 an improved debt to assets ratio.
2.2 Solvency
FCX has an Altman-Z score of 1.98. 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.
Looking at the Altman-Z score, with a value of 1.98, FCX is in line with its industry, outperforming 42.21% of the companies in the same industry.
The Debt to FCF ratio of FCX is 4.67, which is a neutral value as it means it would take FCX, 4.67 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.67, FCX is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that FCX is somewhat dependend on debt financing.
FCX has a worse Debt to Equity ratio (0.50) than 79.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.99
WACC8.33%
2.3 Liquidity
FCX has a Current Ratio of 2.32. This indicates that FCX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.32, FCX is in line with its industry, outperforming 51.30% of the companies in the same industry.
FCX has a Quick Ratio of 1.13. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FCX (1.13) is worse than 61.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
FCX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.51%.
Measured over the past years, FCX shows a very strong growth in Earnings Per Share. The EPS has been growing by 136.19% on average per year.
The Revenue has been growing slightly by 4.52% in the past year.
Measured over the past years, FCX shows a quite strong growth in Revenue. The Revenue has been growing by 12.07% on average per year.
EPS 1Y (TTM)4.51%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%-25%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%-9.38%
3.2 Future
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.16% yearly.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y12.53%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
EPS Next 5Y3.16%
Revenue Next Year4.4%
Revenue Next 2Y6.14%
Revenue Next 3Y5.57%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue 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
A Price/Earnings ratio of 31.69 indicates a quite expensive valuation of FCX.
Compared to the rest of the industry, the Price/Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 64.94% of the companies listed in the same industry.
FCX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 19.68 indicates a rather expensive valuation of FCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.70. FCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.69 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than 78.57% of the companies in the same industry.
74.68% of the companies in the same industry are more expensive than FCX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.41 | ||
| EV/EBITDA | 7.74 |
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.
A more expensive valuation may be justified as FCX's earnings are expected to grow with 24.41% in the coming years.
PEG (NY)2.53
PEG (5Y)0.23
EPS Next 2Y23.4%
EPS Next 3Y24.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.35%, FCX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, FCX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, FCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of FCX is nicely growing with an annual growth rate of 24.59%!
FCX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.43% of the earnings are spent on dividend by FCX. This is a bit on the high side, but may be sustainable.
FCX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.43%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
44.05
+0.7 (+1.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.52%
Inst Owner Change1.04%
Ins Owners0.65%
Ins Owner Change2.59%
Market Cap63.26B
Analysts78.4
Price Target47.51 (7.85%)
Short Float %1.68%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP49.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.37%
Min EPS beat(2)-0.22%
Max EPS beat(2)50.97%
EPS beat(4)3
Avg EPS beat(4)18.94%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)16.95%
EPS beat(12)10
Avg EPS beat(12)13.32%
EPS beat(16)13
Avg EPS beat(16)11.36%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-3.61%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)3.51%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)9.43%
Revenue beat(8)6
Avg Revenue beat(8)4.19%
Revenue beat(12)9
Avg Revenue beat(12)2.38%
Revenue beat(16)10
Avg Revenue beat(16)1.34%
PT rev (1m)1.45%
PT rev (3m)-3.62%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)3.74%
EPS NY rev (1m)5.43%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.69 | ||
| Fwd PE | 19.68 | ||
| P/S | 2.54 | ||
| P/FCF | 31.41 | ||
| P/OCF | 10.01 | ||
| P/B | 3.58 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)1.39
EY3.16%
EPS(NY)2.24
Fwd EY5.08%
FCF(TTM)1.4
FCFY3.18%
OCF(TTM)4.4
OCFY9.99%
SpS17.31
BVpS12.32
TBVpS12.32
PEG (NY)2.53
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.89% | ||
| ROCE | 13.15% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.05% | ||
| ROICexgc | 9.05% | ||
| OM | 26.48% | ||
| PM (TTM) | 7.04% | ||
| GM | 29.3% | ||
| FCFM | 8.1% |
ROA(3y)4.57%
ROA(5y)4.82%
ROE(3y)14.67%
ROE(5y)16.12%
ROIC(3y)9.07%
ROIC(5y)8.64%
ROICexc(3y)10.38%
ROICexc(5y)10.08%
ROICexgc(3y)10.49%
ROICexgc(5y)10.2%
ROCE(3y)14.44%
ROCE(5y)13.74%
ROICexcg growth 3Y-14.57%
ROICexcg growth 5Y51.91%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y52%
OM growth 3Y-9.21%
OM growth 5Y42.43%
PM growth 3Y-26.75%
PM growth 5YN/A
GM growth 3Y-7.56%
GM growth 5Y28.05%
F-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.67 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 203.98% | ||
| Cap/Sales | 17.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.7% | ||
| Profit Quality | 115.09% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.98 |
F-Score7
WACC8.33%
ROIC/WACC0.99
Cap/Depr(3y)195.2%
Cap/Depr(5y)163.96%
Cap/Sales(3y)17.4%
Cap/Sales(5y)15.05%
Profit Quality(3y)77.69%
Profit Quality(5y)108.11%
High Growth Momentum
Growth
EPS 1Y (TTM)4.51%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%-25%
EPS Next Y12.53%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
EPS Next 5Y3.16%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%-9.38%
Revenue Next Year4.4%
Revenue Next 2Y6.14%
Revenue Next 3Y5.57%
Revenue Next 5Y2.17%
EBIT growth 1Y3.17%
EBIT growth 3Y-5.88%
EBIT growth 5Y59.61%
EBIT Next Year47.7%
EBIT Next 3Y24.91%
EBIT Next 5Y5.4%
FCF growth 1Y151.12%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y40.55%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%