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 157 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FCX was profitable.
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
With a decent Return On Assets value of 3.33%, FCX is doing good in the industry, outperforming 70.70% of the companies in the same industry.
With an excellent Return On Equity value of 10.34%, FCX belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
The Return On Invested Capital of FCX (8.58%) is better than 78.34% 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 11.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 10.34% | ||
| 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
FCX's Profit Margin of 7.29% is fine compared to the rest of the industry. FCX outperforms 75.16% of its industry peers.
FCX's Profit Margin has declined in the last couple of years.
FCX has a better Operating Margin (26.96%) than 79.62% of its industry peers.
FCX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.73%, FCX is doing good in the industry, outperforming 68.79% of the companies in the same industry.
FCX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.96% | ||
| PM (TTM) | 7.29% | ||
| 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
FCX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for FCX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.96 indicates that FCX is not a great score, but indicates only limited risk for bankruptcy at the moment.
FCX's Altman-Z score of 1.96 is in line compared to the rest of the industry. FCX outperforms 41.40% of its industry peers.
FCX has a debt to FCF ratio of 4.33. This is a neutral value as FCX would need 4.33 years to pay back of all of its debts.
FCX has a better Debt to FCF ratio (4.33) than 71.97% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that FCX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, FCX is not doing good in the industry: 77.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.98
WACC8.77%
2.3 Liquidity
A Current Ratio of 2.47 indicates that FCX has no problem at all paying its short term obligations.
FCX's Current ratio of 2.47 is in line compared to the rest of the industry. FCX outperforms 54.78% of 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.
Looking at the Quick ratio, with a value of 1.21, FCX is in line with its industry, outperforming 40.76% of the companies in the same industry.
| 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
FCX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.64%.
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)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
FCX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.16% yearly.
Based on estimates for the next years, FCX will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y23.06%
EPS Next 2Y28.71%
EPS Next 3Y24.26%
EPS Next 5Y3.16%
Revenue Next Year7.1%
Revenue Next 2Y8.61%
Revenue Next 3Y6.36%
Revenue Next 5Y2.17%
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
Based on the Price/Earnings ratio of 27.23, the valuation of FCX can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FCX indicates a somewhat cheap valuation: FCX is cheaper than 64.97% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, FCX is valued at the same level.
FCX is valuated correctly with a Price/Forward Earnings ratio of 16.44.
FCX's Price/Forward Earnings ratio is in line with the industry average.
FCX is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.23 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCX is valued cheaply inside the industry as 84.08% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FCX is valued a bit cheaper than 76.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.89 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
FCX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 24.26% in the coming years.
PEG (NY)1.18
PEG (5Y)0.2
EPS Next 2Y28.71%
EPS Next 3Y24.26%
5. Dividend
5.1 Amount
FCX has a Yearly Dividend Yield of 1.49%.
Compared to an average industry Dividend Yield of 2.92, FCX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, FCX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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.
Dividend Growth(5Y)24.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.94% of the earnings are spent on dividend by FCX. 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.
DP45.94%
EPS Next 2Y28.71%
EPS Next 3Y24.26%
40.03
-0.21 (-0.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners86.52%
Inst Owner Change0.21%
Ins Owners0.65%
Ins Owner Change2.61%
Market Cap57.49B
Analysts79.2
Price Target51.28 (28.1%)
Short Float %1.71%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.6
Dividend Growth(5Y)24.59%
DP45.94%
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)7.94%
PT rev (3m)9.31%
EPS NQ rev (1m)-1.9%
EPS NQ rev (3m)14.85%
EPS NY rev (1m)9.36%
EPS NY rev (3m)8.34%
Revenue NQ rev (1m)-2.96%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)2.58%
Revenue NY rev (3m)5.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.23 | ||
| Fwd PE | 16.44 | ||
| P/S | 2.23 | ||
| P/FCF | 26.89 | ||
| P/OCF | 8.76 | ||
| P/B | 3.16 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)1.47
EY3.67%
EPS(NY)2.44
Fwd EY6.08%
FCF(TTM)1.49
FCFY3.72%
OCF(TTM)4.57
OCFY11.41%
SpS17.98
BVpS12.68
TBVpS12.68
PEG (NY)1.18
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 10.34% | ||
| ROCE | 13.66% | ||
| ROIC | 8.58% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.41% | ||
| OM | 26.96% | ||
| PM (TTM) | 7.29% | ||
| 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 | 113.54% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.96 |
F-Score7
WACC8.77%
ROIC/WACC0.98
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 Y23.06%
EPS Next 2Y28.71%
EPS Next 3Y24.26%
EPS Next 5Y3.16%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y3.67%
Revenue growth 5Y12.07%
Sales Q2Q%14.46%
Revenue Next Year7.1%
Revenue Next 2Y8.61%
Revenue Next 3Y6.36%
Revenue Next 5Y2.17%
EBIT growth 1Y-0.71%
EBIT growth 3Y-5.88%
EBIT growth 5Y58.95%
EBIT Next Year47.7%
EBIT Next 3Y24.91%
EBIT Next 5Y5.4%
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%