FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FCX - US35671D8570 - Common Stock
45.2 USD
+0.59 (+1.32%)
45.44 USD
+0.24 (+0.53%)
We assign a fundamental rating of 5 out of 10 to FCX. FCX was compared to 155 industry peers in the Metals & Mining industry. FCX has only an average score on both its financial health and profitability. FCX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FCX had positive earnings in the past year.
FCX had a positive operating cash flow in the past year.
FCX had positive earnings in each of the past 5 years.
FCX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FCX has a better Return On Assets (3.61%) than 67.74% of its industry peers.
FCX's Return On Equity of 10.99% is fine compared to the rest of the industry. FCX outperforms 76.77% of its industry peers.
The Return On Invested Capital of FCX (8.53%) is better than 73.55% 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 13.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 10.99% | ||
| ROIC | 8.53% |
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
FCX has a better Profit Margin (7.90%) than 72.90% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
FCX has a Operating Margin of 26.78%. This is in the better half of the industry: FCX outperforms 76.13% of its industry peers.
In the last couple of years the Operating Margin of FCX has grown nicely.
The Gross Margin of FCX (29.63%) is better than 67.10% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.78% | ||
| PM (TTM) | 7.9% | ||
| GM | 29.63% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FCX is destroying value.
FCX has about the same amout of 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
An Altman-Z score of 2.08 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FCX's Altman-Z score of 2.08 is on the low side compared to the rest of the industry. FCX is outperformed by 65.81% of its industry peers.
The Debt to FCF ratio of FCX is 4.44, which is a neutral value as it means it would take FCX, 4.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FCX (4.44) is better than 70.32% of its industry peers.
FCX has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.48, FCX is doing worse than 77.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.44 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.88
WACC9.74%
2.3 Liquidity
A Current Ratio of 2.45 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.45) which is comparable to the rest of the industry.
A Quick Ratio of 1.19 indicates that FCX should not have too much problems paying its short term obligations.
The Quick ratio of FCX (1.19) is worse than 62.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
FCX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.19%, which is quite good.
The Earnings Per Share has been growing by 136.19% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.41% in the past year.
FCX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.07% yearly.
EPS 1Y (TTM)11.19%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%31.58%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%2.68%
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 10.94% yearly.
Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 4.10% on average per year.
EPS Next Y1.78%
EPS Next 2Y19.37%
EPS Next 3Y24.31%
EPS Next 5Y10.94%
Revenue Next Year-1.62%
Revenue Next 2Y2.07%
Revenue Next 3Y6.35%
Revenue Next 5Y4.1%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FCX is valuated quite expensively with a Price/Earnings ratio of 28.43.
FCX's Price/Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 69.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of FCX to the average of the S&P500 Index (26.49), we can say FCX is valued inline with the index average.
FCX is valuated rather expensively with a Price/Forward Earnings ratio of 21.58.
FCX's Price/Forward Earnings is on the same level as the industry average.
FCX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
87.74% of the companies in the same industry are more expensive than FCX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 76.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.98 | ||
| EV/EBITDA | 7.55 |
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.
A more expensive valuation may be justified as FCX's earnings are expected to grow with 24.31% in the coming years.
PEG (NY)16
PEG (5Y)0.21
EPS Next 2Y19.37%
EPS Next 3Y24.31%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.34%.
FCX's Dividend Yield is a higher than the industry average which is at 2.54.
Compared to an average S&P500 Dividend Yield of 2.31, FCX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
On average, the dividend of FCX grows each year by 24.59%, which is quite nice.
FCX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FCX pays out 42.13% 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.
DP42.13%
EPS Next 2Y19.37%
EPS Next 3Y24.31%
45.2
+0.59 (+1.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.73%
Inst Owner Change1.44%
Ins Owners0.65%
Ins Owner Change0.02%
Market Cap64.90B
Revenue(TTM)26.00B
Net Income(TTM)2.05B
Analysts79.26
Price Target49.47 (9.45%)
Short Float %1.57%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP42.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.63%
Min EPS beat(2)17.82%
Max EPS beat(2)21.43%
EPS beat(4)3
Avg EPS beat(4)22.5%
Min EPS beat(4)-0.22%
Max EPS beat(4)50.97%
EPS beat(8)7
Avg EPS beat(8)19.86%
EPS beat(12)11
Avg EPS beat(12)16.68%
EPS beat(16)13
Avg EPS beat(16)13.22%
Revenue beat(2)2
Avg Revenue beat(2)3.46%
Min Revenue beat(2)2.94%
Max Revenue beat(2)3.99%
Revenue beat(4)3
Avg Revenue beat(4)1.91%
Min Revenue beat(4)-3.61%
Max Revenue beat(4)4.3%
Revenue beat(8)6
Avg Revenue beat(8)3.93%
Revenue beat(12)10
Avg Revenue beat(12)3.88%
Revenue beat(16)12
Avg Revenue beat(16)1.96%
PT rev (1m)2.23%
PT rev (3m)-4.45%
EPS NQ rev (1m)-19.6%
EPS NQ rev (3m)-60.6%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-18.76%
Revenue NQ rev (1m)-3.68%
Revenue NQ rev (3m)-28.95%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-7.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 21.58 | ||
| P/S | 2.5 | ||
| P/FCF | 30.98 | ||
| P/OCF | 10.22 | ||
| P/B | 3.47 | ||
| P/tB | 3.47 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)1.59
EY3.52%
EPS(NY)2.09
Fwd EY4.63%
FCF(TTM)1.46
FCFY3.23%
OCF(TTM)4.42
OCFY9.79%
SpS18.11
BVpS13.01
TBVpS13.01
PEG (NY)16
PEG (5Y)0.21
Graham Number21.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 10.99% | ||
| ROCE | 13.57% | ||
| ROIC | 8.53% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 9.31% | ||
| OM | 26.78% | ||
| PM (TTM) | 7.9% | ||
| GM | 29.63% | ||
| FCFM | 8.06% |
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%
ROICexgc growth 3Y-14.57%
ROICexgc 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 | 0.48 | ||
| Debt/FCF | 4.44 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 185.45% | ||
| Cap/Sales | 16.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.61% | ||
| Profit Quality | 102.05% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.08 |
F-Score7
WACC9.74%
ROIC/WACC0.88
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)11.19%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%31.58%
EPS Next Y1.78%
EPS Next 2Y19.37%
EPS Next 3Y24.31%
EPS Next 5Y10.94%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%2.68%
Revenue Next Year-1.62%
Revenue Next 2Y2.07%
Revenue Next 3Y6.35%
Revenue Next 5Y4.1%
EBIT growth 1Y-6.66%
EBIT growth 3Y-5.88%
EBIT growth 5Y58.95%
EBIT Next Year25.31%
EBIT Next 3Y24.93%
EBIT Next 5Y13.74%
FCF growth 1Y193.83%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y26.35%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%
FREEPORT-MCMORAN INC / FCX FAQ
Can you provide the ChartMill fundamental rating for FREEPORT-MCMORAN INC?
ChartMill assigns a fundamental rating of 5 / 10 to FCX.
What is the valuation status for FCX stock?
ChartMill assigns a valuation rating of 4 / 10 to FREEPORT-MCMORAN INC (FCX). This can be considered as Fairly Valued.
How profitable is FREEPORT-MCMORAN INC (FCX) stock?
FREEPORT-MCMORAN INC (FCX) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for FCX stock?
The Price/Earnings (PE) ratio for FREEPORT-MCMORAN INC (FCX) is 28.43 and the Price/Book (PB) ratio is 3.47.
How sustainable is the dividend of FREEPORT-MCMORAN INC (FCX) stock?
The dividend rating of FREEPORT-MCMORAN INC (FCX) is 4 / 10 and the dividend payout ratio is 42.13%.