FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - NYSE:FCX - US35671D8570 - Common Stock
43.31 USD
+0.46 (+1.07%)
43.42 USD
+0.11 (+0.25%)
Taking everything into account, FCX scores 6 out of 10 in our fundamental rating. FCX was compared to 156 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years FCX has been profitable.
In the past 5 years FCX always reported a positive cash flow from operatings.
1.2 Ratios
FCX's Return On Assets of 3.37% is fine compared to the rest of the industry. FCX outperforms 71.15% of its industry peers.
FCX has a better Return On Equity (10.47%) than 78.85% of its industry peers.
FCX's Return On Invested Capital of 8.58% is fine compared to the rest of the industry. FCX outperforms 77.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FCX is below the industry average of 12.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.47% | ||
| ROIC | 8.58% |
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
The Profit Margin of FCX (7.38%) is better than 74.36% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
FCX has a Operating Margin of 26.96%. This is amongst the best in the industry. FCX outperforms 80.77% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
FCX has a better Gross Margin (29.73%) than 67.31% of its industry peers.
In the last couple of years the Gross Margin of FCX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.96% | ||
| PM (TTM) | 7.38% | ||
| GM | 29.73% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FCX is still creating some value.
FCX has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.02 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FCX has a Altman-Z score of 2.02. This is in the lower half of the industry: FCX underperforms 69.87% of its industry peers.
The Debt to FCF ratio of FCX is 4.33, which is a neutral value as it means it would take FCX, 4.33 years of fcf income to pay off all of its debts.
FCX has a better Debt to FCF ratio (4.33) than 71.79% of its industry peers.
FCX has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, FCX is not doing good in the industry: 78.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.99
WACC8.64%
2.3 Liquidity
A Current Ratio of 2.47 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.47) which is in line with its industry peers.
FCX has a Quick Ratio of 1.21. 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 1.21. This is comparable to the rest of the industry: FCX outperforms 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
FCX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
The Earnings Per Share has been growing by 136.19% on average over the past years. This is a very strong growth
Looking at the last year, FCX shows a small growth in Revenue. The Revenue has grown by 4.64% in the last 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)2.08%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%17.39%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%14.46%
3.2 Future
Based on estimates for the next years, FCX will show a small growth in Earnings Per Share. The EPS will grow by 4.03% on average per year.
Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 1.79% on average per year.
EPS Next Y25.7%
EPS Next 2Y35.29%
EPS Next 3Y27.51%
EPS Next 5Y4.03%
Revenue Next Year-1.99%
Revenue Next 2Y1.19%
Revenue Next 3Y5.22%
Revenue Next 5Y1.79%
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.
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
With a Price/Earnings ratio of 29.46, FCX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FCX is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.70, FCX is valued at the same level.
The Price/Forward Earnings ratio is 16.10, which indicates a correct valuation of FCX.
FCX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 64.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. FCX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued cheaper than 87.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FCX is valued cheaply inside the industry as 81.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.08 | ||
| EV/EBITDA | 7.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 27.51% in the coming years.
PEG (NY)1.15
PEG (5Y)0.22
EPS Next 2Y35.29%
EPS Next 3Y27.51%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.45, FCX pays a better dividend. On top of this FCX pays more dividend than 81.41% of the companies listed in the same industry.
FCX's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of FCX grows each year by 24.59%, which is quite nice.
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
FCX pays out 45.38% of its income as dividend. 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.
DP45.38%
EPS Next 2Y35.29%
EPS Next 3Y27.51%
43.31
+0.46 (+1.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners87.03%
Inst Owner Change-0.01%
Ins Owners0.65%
Ins Owner Change0.31%
Market Cap62.18B
Analysts73.85
Price Target48.19 (11.27%)
Short Float %1.5%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP45.38%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.8%
Min EPS beat(2)-0.22%
Max EPS beat(2)17.82%
EPS beat(4)3
Avg EPS beat(4)18.82%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)19.02%
EPS beat(12)11
Avg EPS beat(12)15.34%
EPS beat(16)13
Avg EPS beat(16)12.42%
Revenue beat(2)2
Avg Revenue beat(2)4.14%
Min Revenue beat(2)3.99%
Max Revenue beat(2)4.3%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)4.3%
Revenue beat(8)6
Avg Revenue beat(8)4.37%
Revenue beat(12)10
Avg Revenue beat(12)3.76%
Revenue beat(16)11
Avg Revenue beat(16)1.67%
PT rev (1m)-6.93%
PT rev (3m)1.44%
EPS NQ rev (1m)-7.19%
EPS NQ rev (3m)-13.53%
EPS NY rev (1m)0.33%
EPS NY rev (3m)11.7%
Revenue NQ rev (1m)-4.25%
Revenue NQ rev (3m)-6.98%
Revenue NY rev (1m)-8%
Revenue NY rev (3m)-6.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 16.1 | ||
| P/S | 2.41 | ||
| P/FCF | 29.08 | ||
| P/OCF | 9.48 | ||
| P/B | 3.42 | ||
| P/tB | 3.42 | ||
| EV/EBITDA | 7.18 |
EPS(TTM)1.47
EY3.39%
EPS(NY)2.69
Fwd EY6.21%
FCF(TTM)1.49
FCFY3.44%
OCF(TTM)4.57
OCFY10.55%
SpS17.98
BVpS12.68
TBVpS12.68
PEG (NY)1.15
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 10.47% | ||
| ROCE | 13.66% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.41% | ||
| OM | 26.96% | ||
| PM (TTM) | 7.38% | ||
| GM | 29.73% | ||
| FCFM | 8.28% |
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 5Y51.28%
ROICexc growth 3Y-14.49%
ROICexc growth 5Y51.37%
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%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.33 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 194.76% | ||
| Cap/Sales | 17.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.06% | ||
| Profit Quality | 112.17% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.02 |
F-Score7
WACC8.64%
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)2.08%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%17.39%
EPS Next Y25.7%
EPS Next 2Y35.29%
EPS Next 3Y27.51%
EPS Next 5Y4.03%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%14.46%
Revenue Next Year-1.99%
Revenue Next 2Y1.19%
Revenue Next 3Y5.22%
Revenue Next 5Y1.79%
EBIT growth 1Y-0.71%
EBIT growth 3Y-5.88%
EBIT growth 5Y58.95%
EBIT Next Year52.01%
EBIT Next 3Y26.01%
EBIT Next 5Y8.87%
FCF growth 1Y288.02%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y44.2%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%