FREEPORT-MCMORAN INC (FCX) Stock Fundamental Analysis
NYSE:FCX - New York Stock Exchange, Inc. - US35671D8570 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FCX. FCX was compared to 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.
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 3.12% is fine compared to the rest of the industry. FCX outperforms 70.13% of its industry peers.
FCX's Return On Equity of 9.89% is fine compared to the rest of the industry. FCX outperforms 77.27% of its industry peers.
FCX's Return On Invested Capital of 8.26% is fine compared to the rest of the industry. FCX outperforms 75.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FCX 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
FCX has a Profit Margin of 7.04%. This is in the better half of the industry: FCX outperforms 75.97% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
FCX's Operating Margin of 26.48% is amongst the best of the industry. FCX outperforms 80.52% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 29.30%, FCX is in the better half of the industry, outperforming 66.88% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FCX is destroying value.
Compared to 1 year ago, FCX has about the same amount of shares outstanding.
FCX has less shares outstanding than it did 5 years ago.
FCX has a better debt/assets ratio than last year.
2.2 Solvency
FCX has an Altman-Z score of 2.03. 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.
FCX's Altman-Z score of 2.03 is in line compared to the rest of the industry. FCX outperforms 41.56% of its industry peers.
FCX has a debt to FCF ratio of 4.67. This is a neutral value as FCX would need 4.67 years to pay back of all of its debts.
The Debt to FCF ratio of FCX (4.67) is better than 68.83% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FCX is somewhat dependend on debt financing.
The Debt to Equity ratio of FCX (0.50) is worse than 79.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.67 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.91
WACC9.09%
2.3 Liquidity
A Current Ratio of 2.32 indicates that FCX has no problem at all paying 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.
FCX's Quick ratio of 1.13 is on the low side compared to the rest of the industry. FCX is outperformed by 61.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.51% over the past year.
The Earnings Per Share has been growing by 136.19% on average over the past years. This is a very strong growth
FCX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.52%.
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
The Earnings Per Share is expected to grow by 3.16% on average over the next years.
FCX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
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
FCX is valuated quite expensively with a Price/Earnings ratio of 32.95.
Compared to the rest of the industry, the Price/Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 62.99% of the companies listed in the same industry.
FCX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 20.46, the valuation of FCX can be described as rather expensive.
FCX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. FCX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.95 | ||
| Fwd PE | 20.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than the industry average as 77.27% 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 73.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.66 | ||
| EV/EBITDA | 8.14 |
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 24.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)0.24
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.
With a Dividend Yield of 1.35, FCX pays less dividend than the S&P500 average, which is at 2.42.
| 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 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 49.43% of its income as dividend. 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.
DP49.43%
EPS Next 2Y23.4%
EPS Next 3Y24.41%
45.8
+0.03 (+0.07%)
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 Cap65.78B
Analysts78.4
Price Target47.51 (3.73%)
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 | 32.95 | ||
| Fwd PE | 20.46 | ||
| P/S | 2.65 | ||
| P/FCF | 32.66 | ||
| P/OCF | 10.4 | ||
| P/B | 3.72 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)1.39
EY3.03%
EPS(NY)2.24
Fwd EY4.89%
FCF(TTM)1.4
FCFY3.06%
OCF(TTM)4.4
OCFY9.61%
SpS17.31
BVpS12.32
TBVpS12.32
PEG (NY)2.63
PEG (5Y)0.24
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 | 2.03 |
F-Score7
WACC9.09%
ROIC/WACC0.91
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%