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. While FCX has a great profitability rating, 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.
FCX had a positive operating cash flow in the past year.
FCX had positive earnings in each of the past 5 years.
In the past 5 years FCX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FCX (3.13%) is better than 69.48% of its industry peers.
The Return On Equity of FCX (9.93%) is better than 75.32% of its industry peers.
FCX has a Return On Invested Capital of 8.24%. This is in the better half of the industry: FCX outperforms 76.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FCX is in line with the industry average of 8.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 9.93% | ||
| ROIC | 8.24% |
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 (7.06%) than 77.27% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
FCX has a better Operating Margin (26.41%) than 82.47% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.30%, FCX is doing good in the industry, outperforming 68.18% 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 | 26.41% | ||
| PM (TTM) | 7.06% | ||
| 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) below the Cost of Capital (WACC), FCX is destroying value.
The number of shares outstanding for FCX remains at a similar level compared to 1 year ago.
The number of shares outstanding for FCX has been reduced compared to 5 years ago.
Compared to 1 year ago, FCX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.87 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 1.87. This is comparable to the rest of the industry: FCX outperforms 40.26% of its industry peers.
FCX has a debt to FCF ratio of 4.79. This is a neutral value as FCX would need 4.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.79, FCX is in the better half of the industry, outperforming 67.53% of the companies in the same industry.
FCX has a Debt/Equity ratio of 0.50. This is a neutral value indicating FCX is somewhat dependend on debt financing.
FCX's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. FCX is outperformed by 77.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.88
WACC9.39%
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 51.95% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that FCX should not have too much problems paying its short term obligations.
FCX has a worse Quick ratio (1.13) than 61.04% 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%.
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.
Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y6.74%
EPS Next 2Y21.07%
EPS Next 3Y24.38%
EPS Next 5Y3.16%
Revenue Next Year2.63%
Revenue Next 2Y5.87%
Revenue Next 3Y5.97%
Revenue Next 5Y1.83%
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
The Price/Earnings ratio is 27.63, which means the current valuation is very expensive for FCX.
FCX's Price/Earnings ratio is a bit cheaper when compared to the industry. FCX is cheaper than 66.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. FCX is around the same levels.
With a Price/Forward Earnings ratio of 17.82, FCX is valued on the expensive side.
FCX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. FCX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
80.52% of the companies in the same industry are more expensive than FCX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.08 | ||
| EV/EBITDA | 6.93 |
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.
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 24.38% in the coming years.
PEG (NY)4.1
PEG (5Y)0.2
EPS Next 2Y21.07%
EPS Next 3Y24.38%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.56%.
FCX's Dividend Yield is a higher than the industry average which is at 3.00.
FCX's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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.
FCX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.59%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
FCX pays out 49.26% 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.
DP49.26%
EPS Next 2Y21.07%
EPS Next 3Y24.38%
38.4
-0.4 (-1.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners85.63%
Inst Owner Change0.92%
Ins Owners0.66%
Ins Owner Change2.32%
Market Cap55.15B
Analysts78.46
Price Target46.83 (21.95%)
Short Float %1.58%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP49.26%
Div Incr Years3
Div Non Decr Years3
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)-5%
PT rev (3m)-7.14%
EPS NQ rev (1m)-8.39%
EPS NQ rev (3m)4.07%
EPS NY rev (1m)-6.02%
EPS NY rev (3m)-5.51%
Revenue NQ rev (1m)-3.39%
Revenue NQ rev (3m)3.69%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 17.82 | ||
| P/S | 2.22 | ||
| P/FCF | 28.08 | ||
| P/OCF | 8.79 | ||
| P/B | 3.12 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)1.39
EY3.62%
EPS(NY)2.15
Fwd EY5.61%
FCF(TTM)1.37
FCFY3.56%
OCF(TTM)4.37
OCFY11.37%
SpS17.31
BVpS12.32
TBVpS12.32
PEG (NY)4.1
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 9.93% | ||
| ROCE | 13.11% | ||
| ROIC | 8.24% | ||
| ROICexc | 9.03% | ||
| ROICexgc | 9.03% | ||
| OM | 26.41% | ||
| PM (TTM) | 7.06% | ||
| GM | 29.3% | ||
| FCFM | 7.9% |
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 | 4.79 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 203.98% | ||
| Cap/Sales | 17.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.27% | ||
| Profit Quality | 111.85% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.87 |
F-Score7
WACC9.39%
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)4.51%
EPS 3Y-22.27%
EPS 5Y136.19%
EPS Q2Q%-25%
EPS Next Y6.74%
EPS Next 2Y21.07%
EPS Next 3Y24.38%
EPS Next 5Y3.16%
Revenue 1Y (TTM)4.52%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%-9.38%
Revenue Next Year2.63%
Revenue Next 2Y5.87%
Revenue Next 3Y5.97%
Revenue Next 5Y1.83%
EBIT growth 1Y2.9%
EBIT growth 3Y-5.88%
EBIT growth 5Y59.61%
EBIT Next Year46.03%
EBIT Next 3Y22.76%
EBIT Next 5Y5.4%
FCF growth 1Y144.89%
FCF growth 3Y-21.33%
FCF growth 5YN/A
OCF growth 1Y39.44%
OCF growth 3Y-2.46%
OCF growth 5Y37.03%