NYSE:FCX

Stock Analysis Report

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Market Cap

US$53.7b

Last Updated

2021/08/03 00:32 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FCX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.08%

FCX

1.8%

US Metals and Mining

-0.4%

US Market


1 Year Return

179.5%

FCX

54.7%

US Metals and Mining

34.4%

US Market

Return vs Industry: FCX exceeded the US Metals and Mining industry which returned 58.5% over the past year.

Return vs Market: FCX exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

FCXIndustryMarket
7 Day-0.08%1.8%-0.4%
30 Day-1.4%0.5%-0.4%
90 Day-6.6%-0.9%4.0%
1 Year180.8%179.5%58.1%54.7%36.5%34.4%
3 Year145.0%137.8%58.6%48.2%62.0%51.9%
5 Year208.8%198.0%90.3%74.3%121.8%97.2%

Long-Term 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 ($36.62) is trading below our estimate of fair value ($96.04)

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


Price To Earnings Ratio

PE vs Industry: FCX is poor value based on its PE Ratio (19x) compared to the US Metals and Mining industry average (12x).

PE vs Market: FCX is poor value based on its PE Ratio (19x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FCX is poor value based on its PEG Ratio (10.9x)


Price to Book Ratio

PB vs Industry: FCX is overvalued based on its PB Ratio (4.5x) compared to the US Metals and Mining industry average (2.4x).


Future Growth

How is Freeport-McMoRan forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCX's forecast earnings growth (1.7% per year) is below the savings rate (2%).

Earnings vs Market: FCX's earnings (1.7% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: FCX's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCX's revenue (4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: FCX's revenue (4% 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 high in 3 years time (21.4%)


Past Performance

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

51.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCX has high quality earnings.

Growing Profit Margin: FCX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FCX has become profitable over the past 5 years, growing earnings by 51.8% per year.

Accelerating Growth: FCX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FCX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (75.1%).


Return on Equity

High ROE: FCX's Return on Equity (17.1%) is considered low.


Financial Health

How is Freeport-McMoRan's financial position?


Financial Position Analysis

Short Term Liabilities: FCX's short term assets ($12.6B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: FCX's short term assets ($12.6B) do not cover its long term liabilities ($19.0B).


Debt to Equity History and Analysis

Debt Level: FCX's debt to equity ratio (45.2%) is considered high.

Reducing Debt: FCX's debt to equity ratio has reduced from 212.3% to 45.2% over the past 5 years.

Debt Coverage: FCX's debt is well covered by operating cash flow (63.7%).

Interest Coverage: FCX's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Dividend

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

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCX's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: FCX's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: FCX's dividend payments have been volatile in the past 10 years.

Growing Dividend: FCX's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.9%), FCX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCX's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Richard Adkerson (74 yo)

17.67yrs

Tenure

US$16,720,881

Compensation

Mr. Richard C. Adkerson serves as the Chairman of Freeport-McMoRan Inc. since February 2021 and also serves as its Chief Executive Officer since December 2003. He has been a Director of Freeport-McMoRan In...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD16.72M) is above average for companies of similar size in the US market ($USD11.19M).

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


Leadership Team

Experienced Management: FCX's management team is seasoned and experienced (10 years average tenure).


Board Members

Experienced Board: FCX's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: FCX insiders have only sold shares 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$53.668b
  • Shares outstanding: 1.47b
  • Website: https://fcx.com

Number of Employees


Location

  • Freeport-McMoRan Inc.
  • 333 North Central Avenue
  • Phoenix
  • Arizona
  • 85004-2189
  • United States

Listings


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 Analysis2021/08/03 00:32
End of Day Share Price2021/08/02 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.