NYSE:FCX

Stock Analysis Report

Executive Summary

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Risks

  • Freeport-McMoRan has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Freeport-McMoRan's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

NYSE:FCX

-0.1%

US Metals and Mining

-1.6%

US Market


1 Year Return

-39.0%

NYSE:FCX

-17.0%

US Metals and Mining

-3.0%

US Market

FCX underperformed the Metals and Mining industry which returned -17% over the past year.

FCX underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

FCXIndustryMarket
7 Day-3.0%-0.1%-1.6%
30 Day-22.7%-10.0%-5.7%
90 Day-12.4%2.4%0.2%
1 Year-38.0%-39.0%-14.6%-17.0%-0.8%-3.0%
3 Year-17.1%-18.9%2.9%-2.3%38.1%29.1%
5 Year-74.2%-75.7%-19.1%-25.1%50.8%34.1%

Price Volatility Vs. Market

How volatile is Freeport-McMoRan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Freeport-McMoRan undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Freeport-McMoRan's share price is below the future cash flow value, and at a moderate discount (> 20%).

Freeport-McMoRan's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Freeport-McMoRan is overvalued based on earnings compared to the US Metals and Mining industry average.

Freeport-McMoRan is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Freeport-McMoRan is good value based on expected growth next year.


Price Based on Value of Assets

Freeport-McMoRan is good value based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Freeport-McMoRan expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Freeport-McMoRan's revenue is expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Freeport-McMoRan's earnings are expected to grow significantly at over 20% yearly.

Freeport-McMoRan's revenue growth is expected to exceed the United States of America market average.

Freeport-McMoRan's earnings growth is expected to exceed the United States of America market average.

Freeport-McMoRan's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Freeport-McMoRan is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Freeport-McMoRan performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Freeport-McMoRan has delivered over 20% year on year earnings growth in the past 5 years.

Freeport-McMoRan's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Freeport-McMoRan's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.


Return on Equity

Freeport-McMoRan has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Freeport-McMoRan used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Freeport-McMoRan has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Freeport-McMoRan's financial position?


Financial Position Analysis

Freeport-McMoRan is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Freeport-McMoRan's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Freeport-McMoRan's level of debt (55.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (76.8% vs 55.7% today).

Debt is well covered by operating cash flow (22.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is Freeport-McMoRan's current dividend yield, its reliability and sustainability?

2.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Freeport-McMoRan's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Freeport-McMoRan's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.3x coverage).


Next Steps

Management

What is the CEO of Freeport-McMoRan's salary, the management and board of directors tenure and is there insider trading?

12.6yrs

Average management tenure


CEO

Richard Adkerson (72yo)

15.7yrs

Tenure

US$16,424,035

Compensation

Mr. Richard C. Adkerson has been the President of Freeport-Mcmoran Oil & Gas LLC since January 1, 2008 and its Chief Executive Officer since December 10, 2003. Mr. Adkerson serves as an Executive Vice Pres ...


CEO Compensation Analysis

Richard's remuneration is higher than average for companies of similar size in United States of America.

Richard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

12.6yrs

Average Tenure

63yo

Average Age

The average tenure for the Freeport-McMoRan management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

75yo

Average Age

The tenure for the Freeport-McMoRan board of directors is about average.


Insider Trading

More shares have been bought than sold by Freeport-McMoRan individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$524,34010 Jun 19
Kathleen Quirk
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares50,000
Max PriceUS$10.49
BuyUS$1,744,08006 Jun 19
Richard Adkerson
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares172,000
Max PriceUS$10.14
SellUS$85,95513 Feb 19
C. Whitmire
EntityIndividual
Shares7,425
Max PriceUS$11.58
SellUS$836,25001 Nov 18
Courtney Mather
EntityIndividual
Shares75,000
Max PriceUS$11.15

Ownership Breakdown


Management Team

  • Kathleen Quirk (55yo)

    Executive VP & CFO

    • Tenure: 15.7yrs
    • Compensation: US$6.78m
  • Richard Adkerson (72yo)

    Vice Chairman

    • Tenure: 15.7yrs
    • Compensation: US$16.42m
  • W. King (69yo)

    Senior Vice President of International Relations & Federal Government Affairs

    • Tenure: 0.0yrs
  • Red Conger (63yo)

    President & COO of Americas

    • Tenure: 12.6yrs
    • Compensation: US$4.74m
  • Mark Johnson (60yo)

    President & COO of Freeport-McMoRan Indonesia

    • Tenure: 4.1yrs
    • Compensation: US$4.18m
  • Dean Falgoust (61yo)

    President of FMS & VP of FCX

    • Tenure: 0.0yrs
  • Javier Targhetta

    Senior Vice President of FCX - Concentrates

    • Tenure: 0.0yrs
  • Lynne Cooney

    VP & Assistant to the Chairman

    • Tenure: 0.0yrs
  • Stephen Higgins

    Senior VP & Chief Administrative Officer

    • Tenure: 0.0yrs
  • L. McMillan (72yo)

    Senior VP & General Counsel

    • Tenure: 11.8yrs

Board Members

  • Dustan McCoy (69yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$277.50k
  • James Moffett (81yo)

    Chairman Emeritus

    • Tenure: 3.7yrs
    • Compensation: US$24.82m
  • Richard Adkerson (72yo)

    Vice Chairman

    • Tenure: 15.7yrs
    • Compensation: US$16.42m
  • J. Johnston (86yo)

    Member of Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$779.79k
  • Henry Kissinger (95yo)

    Director Emeritus

    • Tenure: 0.0yrs
  • Jerry Ford (75yo)

    Non-Executive Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: US$327.03k
  • J. Roy (82yo)

    Member of Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$555.93k
  • Lydia Kennard (64yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$264.54k
  • Frances Fragos Townsend (57yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$269.55k

Company Information

Freeport-McMoRan Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Freeport-McMoRan Inc.
  • Ticker: FCX
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Copper
  • Sector: Materials
  • Market Cap: US$12.811b
  • Shares outstanding: 1.45b
  • Website: https://www.fcx.com

Number of Employees


Location

  • Freeport-McMoRan Inc.
  • 333 North Central Avenue
  • Phoenix
  • Arizona
  • 85004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCXNYSE (New York Stock Exchange)YesClass B Common StockUSUSDJul 1995
FPMBDB (Deutsche Boerse AG)YesClass B Common StockDEEURJul 1995
FCX *BMV (Bolsa Mexicana de Valores)YesClass B Common StockMXMXNJul 1995
FPMBXTRA (XETRA Trading Platform)YesClass B Common StockDEEURJul 1995
FCXSNSE (Santiago Stock Exchange)YesClass B Common StockCLUSDJul 1995
0R2OLSE (London Stock Exchange)YesClass B Common StockGBUSDJul 1995
FCXBVL (Bolsa de Valores de Lima)YesClass B Common StockPEUSDJul 1995
FCXWBAG (Wiener Boerse AG)YesClass B Common StockATEURJul 1995
FCXBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/4 ORD SHSARARSApr 2011
FCXO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHBRBRLJan 2012

Biography

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as w ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:41
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.