FREEPORT-MCMORAN INC (FCX)

US35671D8570 - Common Stock

47.73  -0.26 (-0.54%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to FCX. FCX was compared to 155 industry peers in the Metals & Mining industry. While FCX has a great profitability rating, there are some minor concerns on its financial health. FCX is quite expensive at the moment. It does show a decent growth rate.



7

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.
Of the past 5 years FCX 4 years were profitable.
In the past 5 years FCX always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 3.50%, FCX is doing good in the industry, outperforming 69.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.00%, FCX belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
FCX's Return On Invested Capital of 8.73% is fine compared to the rest of the industry. FCX outperforms 79.35% 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 9.16%.
Industry RankSector Rank
ROA 3.5%
ROE 11%
ROIC 8.73%
ROA(3y)6.41%
ROA(5y)4.01%
ROE(3y)21.35%
ROE(5y)13.46%
ROIC(3y)10.49%
ROIC(5y)7.26%

1.3 Margins

FCX has a better Profit Margin (8.04%) than 73.55% of its industry peers.
In the last couple of years the Profit Margin of FCX has declined.
Looking at the Operating Margin, with a value of 27.78%, FCX belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
FCX's Operating Margin has improved in the last couple of years.
FCX's Gross Margin of 31.33% is fine compared to the rest of the industry. FCX outperforms 76.77% of its industry peers.
FCX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 27.78%
PM (TTM) 8.04%
GM 31.33%
OM growth 3Y21.08%
OM growth 5Y2.54%
PM growth 3Y24.29%
PM growth 5Y-10.39%
GM growth 3Y17.94%
GM growth 5Y2.82%

5

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 has been increased compared to 1 year ago.
The number of shares outstanding for FCX has been reduced compared to 5 years ago.
The debt/assets ratio for FCX has been reduced compared to a year ago.

2.2 Solvency

FCX has an Altman-Z score of 2.12. 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.
The Altman-Z score of FCX (2.12) is comparable to the rest of the industry.
The Debt to FCF ratio of FCX is 14.38, which is on the high side as it means it would take FCX, 14.38 years of fcf income to pay off all of its debts.
FCX has a better Debt to FCF ratio (14.38) than 65.81% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that FCX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, FCX is doing worse than 80.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 14.38
Altman-Z 2.12
ROIC/WACC1.04
WACC8.42%

2.3 Liquidity

A Current Ratio of 2.42 indicates that FCX has no problem at all paying its short term obligations.
FCX has a Current ratio (2.42) which is in line with its industry peers.
FCX has a Quick Ratio of 1.38. This is a normal value and indicates that FCX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.38, FCX perfoms like the industry average, outperforming 47.10% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.42
Quick Ratio 1.38

4

3. Growth

3.1 Past

FCX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.04%.
The Earnings Per Share has been growing slightly by 0.40% on average over the past years.
The Revenue has been growing slightly by 0.33% in the past year.
The Revenue has been growing slightly by 4.17% on average over the past years.
EPS 1Y (TTM)-37.04%
EPS 3Y41.5%
EPS 5Y0.4%
EPS growth Q2Q-48.08%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y4.17%
Revenue growth Q2Q2.55%

3.2 Future

The Earnings Per Share is expected to grow by 14.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.10% on average over the next years.
EPS Next Y5.35%
EPS Next 2Y19.41%
EPS Next 3Y17.63%
EPS Next 5Y14.02%
Revenue Next Year4.16%
Revenue Next 2Y5.31%
Revenue Next 3Y3.63%
Revenue Next 5Y7.1%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.20, which means the current valuation is very expensive for FCX.
Based on the Price/Earnings ratio, FCX is valued a bit cheaper than 61.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of FCX to the average of the S&P500 Index (25.20), we can say FCX is valued slightly more expensively.
The Price/Forward Earnings ratio is 29.61, which means the current valuation is very expensive for FCX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, FCX is valued a bit more expensive.
Industry RankSector Rank
PE 31.2
Fwd PE 29.61

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FCX is valued a bit cheaper than 67.74% of the companies in the same industry.
FCX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FCX is cheaper than 64.52% of the companies in the same industry.
Industry RankSector Rank
P/FCF 104.53
EV/EBITDA 8.73

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.
FCX's earnings are expected to grow with 17.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.83
PEG (5Y)78.61
EPS Next 2Y19.41%
EPS Next 3Y17.63%

5

5. Dividend

5.1 Amount

FCX has a Yearly Dividend Yield of 1.23%.
Compared to an average industry Dividend Yield of 2.87, FCX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, FCX pays less dividend than the S&P500 average, which is at 2.45.
Industry RankSector Rank
Dividend Yield 1.23%

5.2 History

The dividend of FCX is nicely growing with an annual growth rate of 31.97%!
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)31.97%
Div Incr Years0
Div Non Decr Years3

5.3 Sustainability

46.98% of the earnings are spent on dividend by FCX. 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.
DP46.98%
EPS Next 2Y19.41%
EPS Next 3Y17.63%

FREEPORT-MCMORAN INC

NYSE:FCX (4/24/2024, 9:40:07 AM)

47.73

-0.26 (-0.54%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap68.46B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.23%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 31.2
Fwd PE 29.61
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.83
PEG (5Y)78.61
Profitability
Industry RankSector Rank
ROA 3.5%
ROE 11%
ROCE
ROIC
ROICexc
ROICexgc
OM 27.78%
PM (TTM) 8.04%
GM 31.33%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.42
Quick Ratio 1.38
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-37.04%
EPS 3Y41.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.33%
Revenue growth 3Y17.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y