An Intrinsic Calculation For Freeport-McMoRan Inc. (NYSE:FCX) Suggests It's 43% Undervalued
Jun 23
U.S. Metals and Mining Industry Analysis
UpdatedJun 23, 2024
DataAggregated Company Financials
Companies263
- 7D2.3%
- 3M2.3%
- 1Y20.7%
- YTD7.8%
Over the last 7 days, the Metals and Mining industry has risen 2.3%, driven by gains in Southern Copper and Freeport-McMoRan of 2.7% and 3.0%, respectively. This takes the industry's 12 month performance to a gain of 21%. As for the next few years, earnings are expected to grow by 20% per annum.
Industry Valuation and Performance
Has the U.S. Metals and Mining Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 23 Jun 2024 | US$434.4b | US$266.4b | US$13.0b | 13x | 33.5x | 1.6x |
| Tue, 21 May 2024 | US$474.1b | US$267.0b | US$13.0b | 14.5x | 36.4x | 1.8x |
| Thu, 18 Apr 2024 | US$450.6b | US$266.0b | US$15.6b | 13.8x | 28.8x | 1.7x |
| Sat, 16 Mar 2024 | US$407.3b | US$266.6b | US$16.0b | 14.1x | 25.5x | 1.5x |
| Mon, 12 Feb 2024 | US$377.2b | US$264.8b | US$18.2b | 16.3x | 20.7x | 1.4x |
| Wed, 10 Jan 2024 | US$397.7b | US$278.2b | US$19.4b | 17.6x | 20.5x | 1.4x |
| Fri, 08 Dec 2023 | US$368.4b | US$278.7b | US$19.8b | 15x | 18.6x | 1.3x |
| Sun, 05 Nov 2023 | US$348.2b | US$280.1b | US$20.1b | 13.6x | 17.3x | 1.2x |
| Tue, 03 Oct 2023 | US$350.8b | US$283.5b | US$21.9b | 11.6x | 16x | 1.2x |
| Thu, 31 Aug 2023 | US$361.7b | US$276.5b | US$21.7b | 13.8x | 16.7x | 1.3x |
| Sat, 29 Jul 2023 | US$371.7b | US$276.7b | US$22.0b | 13.9x | 16.9x | 1.3x |
| Mon, 26 Jun 2023 | US$339.3b | US$284.6b | US$26.0b | 12.2x | 13.1x | 1.2x |
| Wed, 24 May 2023 | US$325.7b | US$284.6b | US$26.3b | 12.2x | 12.4x | 1.1x |
| Fri, 21 Apr 2023 | US$366.4b | US$292.0b | US$29.6b | 11.3x | 12.4x | 1.3x |
| Sun, 19 Mar 2023 | US$336.4b | US$293.1b | US$31.0b | 9.8x | 10.9x | 1.1x |
| Tue, 14 Feb 2023 | US$367.5b | US$295.7b | US$35.5b | 7.6x | 10.4x | 1.2x |
| Thu, 12 Jan 2023 | US$367.2b | US$298.5b | US$37.9b | 7.8x | 9.7x | 1.2x |
| Sat, 10 Dec 2022 | US$329.7b | US$298.2b | US$38.0b | 6x | 8.7x | 1.1x |
| Mon, 07 Nov 2022 | US$304.2b | US$297.4b | US$37.8b | 6.8x | 8x | 1x |
| Wed, 05 Oct 2022 | US$285.9b | US$296.9b | US$44.4b | 6.8x | 6.4x | 1x |
| Fri, 02 Sep 2022 | US$277.2b | US$296.7b | US$44.5b | 6.5x | 6.2x | 0.9x |
| Sun, 31 Jul 2022 | US$298.8b | US$292.2b | US$42.9b | 8.2x | 7x | 1x |
| Tue, 28 Jun 2022 | US$308.8b | US$282.1b | US$42.1b | 8.2x | 7.3x | 1.1x |
| Thu, 26 May 2022 | US$352.5b | US$280.7b | US$41.9b | 8.6x | 8.4x | 1.3x |
| Sat, 23 Apr 2022 | US$394.2b | US$268.9b | US$38.5b | 10.9x | 10.2x | 1.5x |
| Mon, 21 Mar 2022 | US$405.3b | US$259.9b | US$35.7b | 9.9x | 11.3x | 1.6x |
| Wed, 16 Feb 2022 | US$359.1b | US$251.4b | US$34.6b | 9.2x | 10.4x | 1.4x |
| Fri, 14 Jan 2022 | US$342.7b | US$234.0b | US$28.4b | 8.9x | 12x | 1.5x |
| Sun, 12 Dec 2021 | US$314.8b | US$232.4b | US$28.0b | 9.3x | 11.2x | 1.4x |
| Tue, 09 Nov 2021 | US$329.2b | US$231.8b | US$27.9b | 9.2x | 11.8x | 1.4x |
| Thu, 07 Oct 2021 | US$290.2b | US$195.4b | US$17.9b | 11.5x | 16.2x | 1.5x |
| Sat, 04 Sep 2021 | US$323.3b | US$198.0b | US$18.0b | 11.6x | 18x | 1.6x |
| Mon, 02 Aug 2021 | US$323.1b | US$198.0b | US$18.0b | 11.8x | 18x | 1.6x |
Price to Earnings Ratio
19.3x
Current Industry PE
- Investors are optimistic on the American Metals and Mining industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 33.5x which is higher than its 3-year average PE of 14.7x.
- The 3-year average PS ratio of 1.3x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Metals and Mining industry have declined 7.9% per year over the last three years.
- Meanwhile revenues for these companies have grown 11% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Materials industry?
| US Market | 0.54% | |
| Materials | 0.58% | |
| Metals and Mining | 2.25% | |
| Aluminum | 4.62% | |
| Copper | 2.74% | |
| Gold | 2.60% | |
| Steel | 1.81% | |
| Silver | -1.37% | |
| Diversified Metals and Mining | -2.68% | |
| Precious Metals and Minerals | -2.99% | |
Industry PE
- Investors are most optimistic about the Copper industry which is trading above its 3-year average PE ratio of 19.9x.
- Analysts are expecting annual earnings growth of 20.1%, which is higher than its past year's earnings decline of 24.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Precious Metals and Minerals industry, expecting annual earnings growth of 125% over the next 5 years.
- In contrast, the Steel industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SCCO Southern Copper | US$109.12 | 2.7% +US$2.2b | 54.7% | PE36.3x | |
| FCX Freeport-McMoRan | US$49.56 | 3.0% +US$2.1b | 29.2% | PE43.1x | |
| NEM Newmont | US$42.26 | 3.5% +US$1.7b | 1.6% | PS3.7x | |
| STLD Steel Dynamics | US$128.18 | 6.2% +US$1.2b | 24.8% | PE8.4x | |
| NUE Nucor | US$157.58 | 1.9% +US$692.9m | 2.5% | PE9x |
