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 Analysis

Reasonable growth potential and fair value.


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

Stable Share Price: FCX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

FCX

1.5%

US Metals and Mining

-2.8%

US Market


1 Year Return

-52.6%

FCX

-30.6%

US Metals and Mining

-15.9%

US Market

Return vs Industry: FCX underperformed the US Metals and Mining industry which returned -30.6% over the past year.

Return vs Market: FCX underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

FCXIndustryMarket
7 Day1.9%1.5%-2.8%
30 Day-33.0%-21.7%-18.8%
90 Day-50.8%-30.8%-24.0%
1 Year-51.7%-52.6%-28.5%-30.6%-14.2%-15.9%
3 Year-51.2%-52.7%-24.8%-29.2%9.9%2.8%
5 Year-63.8%-65.5%-3.2%-11.2%27.2%13.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCX ($6.32) is trading below our estimate of fair value ($37.17)

Significantly Below Fair Value: FCX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FCX is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: FCX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FCX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FCX is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Freeport-McMoRan forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

52.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FCX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FCX's is expected to become profitable in the next 3 years.

Revenue vs Market: FCX's revenue (7.6% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: FCX's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCX's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

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

56.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCX is currently unprofitable.

Growing Profit Margin: FCX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FCX is unprofitable, but has reduced losses over the past 5 years at a rate of 56.9% per year.

Accelerating Growth: Unable to compare FCX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FCX is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.3%).


Return on Equity

High ROE: FCX has a negative Return on Equity (-1.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Freeport-McMoRan's financial position?


Financial Position Analysis

Short Term Liabilities: FCX's short term assets ($7.9B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: FCX's short term assets ($7.9B) do not cover its long term liabilities ($20.2B).


Debt to Equity History and Analysis

Debt Level: FCX's debt to equity ratio (56.3%) is considered high.

Reducing Debt: FCX's debt to equity ratio has reduced from 81.3% to 56.3% over the past 5 years.


Balance Sheet

Inventory Level: FCX has a high level of physical assets or inventory.

Debt Coverage by Assets: FCX's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if FCX has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FCX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

4.00%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FCX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FCX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FCX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FCX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FCX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FCX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average management tenure


CEO

Richard Adkerson (72yo)

16.33s

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

Compensation vs Market: Richard's total compensation ($USD16.42M) is above average for companies of similar size in the US market ($USD7.67M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Adkerson
Vice Chairman16.33yrsUS$16.42m0.16% $14.4m
Kathleen Quirk
Executive VP & CFO16.33yrsUS$6.78m0.059% $5.4m
Harry Conger
President & COO of Americas13.25yrsUS$4.74m0.017% $1.6m
Stephen Higgins
Senior VP & Chief Administrative Officerno datano datano data
L. McMillan
Senior VP & General Counsel12.5yrsno datano data
W. King
Senior Vice President of International Relations & Federal Government Affairsno datano datano data
Javier Targhetta
Senior Vice President of FCX - Concentratesno datano datano data
Lynne Cooney
VP & Assistant to the Chairmanno datano datano data
Mark Johnson
President & COO of Freeport-McMoRan Indonesia4.75yrsUS$4.18mno data
Dean Falgoust
President of FMS & VP of FCXno datano datano data

13.3yrs

Average Tenure

63yo

Average Age

Experienced Management: FCX's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Adkerson
Vice Chairman16.33yrsUS$16.42m0.16% $14.4m
Dustan McCoy
Independent Director13.25yrsUS$277.50k0.0011% $100.9k
James Moffett
Chairman Emeritus4.33yrsUS$24.82mno data
J. Johnston
Member of Advisory Boardno dataUS$779.79kno data
Henry Kissinger
Director Emeritusno datano datano data
Gerald Ford
Non-Executive Chairman of the Board4.33yrsUS$327.03k0.024% $2.2m
J. Roy
Member of Advisory Boardno dataUS$555.93kno data
Lydia Kennard
Independent Director6.33yrsUS$264.54k0.0046% $419.1k
John Stephens
Director0.50yrno data0.0032% $291.6k
Frances Fragos Townsend
Independent Director7.25yrsUS$269.55k0.0046% $425.5k

6.3yrs

Average Tenure

73.5yo

Average Age

Experienced Board: FCX's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FCX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$9.170b
  • 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
FCXSWX (SIX Swiss Exchange)YesClass B Common StockCHCHFJul 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
FPMBETLX (Eurotlx)YesClass B Common StockITEURJul 1995
FCXBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1 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 well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. It also operates a portfolio of oil and gas assets comprising oil and natural gas production onshore in South Louisiana; and oil production offshore California. As of December 31, 2018, the company’s estimated consolidated recoverable proven and probable mineral reserves totaled 119.6 billion pounds of copper, 30.8 million ounces of gold, and 3.78 billion pounds of molybdenum, as well as estimated proved developed oil and natural gas reserves totaled 7.2 million barrels of oil equivalents. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 03:51
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.