Freeport-McMoRan Inc.
Freeport-McMoRan Inc. Fundamental Analysis
Freeport-McMoRan Inc. (FCX) shows moderate financial fundamentals with a PE ratio of 42.99, profit margin of 8.54%, and ROE of 11.97%. The company generates $25.6B in annual revenue with strong year-over-year growth of 10.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FCX's fundamental strength across five key dimensions:
Efficiency Score
WeakFCX struggles to generate sufficient returns from assets.
Valuation Score
WeakFCX trades at a premium to fair value.
Growth Score
ModerateFCX shows steady but slowing expansion.
Financial Health Score
ExcellentFCX maintains a strong and stable balance sheet.
Profitability Score
WeakFCX struggles to sustain strong margins.
Key Financial Metrics
Is FCX Expensive or Cheap?
P/E Ratio
FCX trades at 42.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FCX's PEG of 6.78 indicates potential overvaluation.
Price to Book
The market values Freeport-McMoRan Inc. at 5.00 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.81 times EBITDA. This is generally considered low.
How Well Does FCX Make Money?
Net Profit Margin
For every $100 in sales, Freeport-McMoRan Inc. keeps $8.54 as profit after all expenses.
Operating Margin
Core operations generate 24.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.97 in profit for every $100 of shareholder equity.
ROA
Freeport-McMoRan Inc. generates $3.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Freeport-McMoRan Inc. produces operating cash flow of $5.58B, showing steady but balanced cash generation.
Free Cash Flow
Freeport-McMoRan Inc. generates strong free cash flow of $5.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.89 in free cash annually.
FCF Yield
FCX converts 5.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How FCX Stacks Against Its Sector Peers
| Metric | FCX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.99 | 27.01 | Worse (Expensive) |
| ROE | 11.97% | 949.00% | Weak |
| Net Margin | 8.54% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.48 | Weak (High Leverage) |
| Current Ratio | 2.29 | 4.42 | Strong Liquidity |
| ROA | 3.78% | -6411.00% (disorted) | Weak |
FCX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Freeport-McMoRan Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.85%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
871.76%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
385.14%
Industry Style: Cyclical, Commodity, Value
High Growth