Freeport-McMoRan Inc
Exchange: NYSESector: Basic MaterialsIndustry: Copper
Freeport-McMoRan Copper & Gold Inc. (FCX) is an international mining company. FCX is one of the copper, gold and molybdenum mining companies in terms of reserves and production. Its portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, and the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC). The Grasberg minerals district contains the recoverable copper reserve and the gold reserve. It also operates Atlantic Copper, its wholly owned copper smelting and refining unit in Spain. FCX has its operations into five primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. In May 2013, the Company completes acquisition of Plains Exploration & Production Company. In June 2013, FCX acquired the remaining 64% interest in McMoRan Exploration Co.
Did you know?
Trading 2% above its estimated fair value of $54.70.
Current Price
$55.57
-1.73%GoodMoat Value
$54.70
1.6% overvaluedProfile
Valuation (TTM)
Market Cap$79.79B
P/E36.20
EV$85.23B
P/B4.22
Shares Out1.44B
P/Sales3.08
Revenue$25.91B
EV/EBITDA12.24
Freeport-McMoRan Inc (FCX) Stock Analysis
GoodMoat Analysis
Freeport-McMoRan is a major copper producer with a moat based on scale and high-quality assets, but its current valuation appears demanding relative to its financial performance and growth profile. The stock does not meet the initial quality and valuation gates of the framework for a deeper look. For a value investor, this suggests the company is not a compelling candidate for further investigation at this price.
Read full analysis
Freeport-McMoRan (FCX) is a leading international mining company focused on copper, gold, and molybdenum. Its primary moat stems from owning large-scale, long-life, and low-cost copper assets, particularly the Grasberg minerals district in Indonesia. Applying the GoodMoat framework, this aligns with 'Scale Privilege' (criterion 8) in physical infrastructure and potentially 'Regulatory Barriers' (criterion 5) in certain jurisdictions. However, the cyclical and capital-intensive nature of mining limits the durability and number of moat criteria it can meet, likely resulting in a Moat Score below the framework's 5+ threshold for a durable advantage. Financially, the company shows mixed quality signals. While its operating margin of 25.2% is robust, its Return on Equity of 11.7% is below the high-quality threshold of 15-20%, and its negative revenue growth of -1.5% YoY is a concern. The valuation is challenging for a value investor. With a P/E of 37.2 and a Free Cash Flow Yield of only 2.0%, the stock is priced for strong growth that current fundamentals do not support. According to the Decision Framework, the likely low Moat Score and mixed Quality Indicators would cause the analysis to stop at Step 1 (The Moat & Quality Gate), failing to proceed. Even if it passed, the elevated valuation and low FCF yield would place it in the 'With Caution' or 'Unfavourable' category in Step 2, as it offers no margin of safety. The neutral GoodMoat Target price of $54.70, nearly identical to the current price, reinforces this view. Analysis based on data as of 2024-05-15.
Market Cap$79.79B
Current Price$55.57
P/E Ratio36.20
Forward P/E—
PEG Ratio0.76
EPS$1.52
Book Value$13.16
P/B Ratio4.22
FCX Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 6.3B
Revenue
14.4B
FY19
14.2B
FY20
22.8B
FY21
22.8B
FY22
22.9B
FY23
25.5B
FY24
25.9B
FY25
Net Income
—
FY19
599M
FY20
4.3B
FY21
3.5B
FY22
1.8B
FY23
1.9B
FY24
2.2B
FY25
FCX 52-Week Range
$35.05
$70.36
50-Day MA: $61.81200-Day MA: $50.55
Did you know?
Trading 2% above its estimated fair value of $54.70.
Freeport-McMoRan Inc (FCX) Financial Summary
Freeport-McMoRan Inc (FCX) is a Basic Materials company in the Copper industry, listed on NYSE. The stock currently trades at $55.57 with a market capitalization of $79.79B.
Key valuation metrics include a P/E ratio of 36.20, price-to-book ratio of 4.22, and EPS of $1.52. The company reports a profit margin of 8.5% and return on equity of 11.7%.
FCX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $79.79B |
| P/E Ratio | 36.20 |
| EPS | $1.52 |
| P/B Ratio | 4.22 |
| P/S Ratio | 3.08 |
| EV/EBITDA | 12.24 |
| Dividend Yield | 1.08% |
| Profit Margin | 8.5% |
| Return on Equity | 11.7% |
| Debt/Equity | 0.55 |
FCX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $14.40B | $-239.00M |
| FY20 | $14.20B | $599.00M |
| FY21 | $22.84B | $4.31B |
| FY22 | $22.78B | $3.47B |
| FY23 | $22.86B | $1.85B |
| FY24 | $25.45B | $1.89B |
| FY25 | $25.91B | $2.20B |
Freeport-McMoRan Inc (FCX) Valuation
Based on GoodMoat's DCF model, Freeport-McMoRan Inc has a fair value estimate of $54.70. At the current price of $55.57, the stock appears 1.6% overvalued relative to our intrinsic value estimate.
FCX Quality Indicators
Freeport-McMoRan Inc maintains a profit margin of 8.5% and an operating margin of 25.2%. Return on equity stands at 11.7%. The current ratio is 2.29. Debt-to-equity ratio is 0.55.
About Freeport-McMoRan Inc
Freeport-McMoRan Copper & Gold Inc. (FCX) is an international mining company. FCX is one of the copper, gold and molybdenum mining companies in terms of reserves and production. Its portfolio of assets includes the Grasberg minerals district in Indonesia, mining operations in North and South America, and the Tenke Fungurume (Tenke) minerals district in the Democratic Republic of Congo (DRC). The Grasberg minerals district contains the recoverable copper reserve and the gold reserve. It also operates Atlantic Copper, its wholly owned copper smelting and refining unit in Spain. FCX has its operations into five primary divisions: North America copper mines, South America mining, Indonesia mining, Africa mining and Molybdenum operations. In May 2013, the Company completes acquisition of Plains Exploration & Production Company. In June 2013, FCX acquired the remaining 64% interest in McMoRan Exploration Co.
FCX Free Cash Flow
Freeport-McMoRan Inc generated $1.62B in trailing twelve-month free cash flow, representing an FCF yield of 2.03%. This moderate FCF yield indicates reasonable cash generation.
FCX Shares Outstanding
Freeport-McMoRan Inc has 1.44 billion shares outstanding at a share price of $55.57, giving it a market capitalization of $79.79B.
FCX Recent Insider Trades
Recent insider transactions at Freeport-McMoRan Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Higgins Stephen T. (EVP & CAO) | SELL | 29,654 | $1.87M |
| Mikes Ellie L. (Chief Accounting Officer) | SELL | 11,000 | $682345.40 |
| Robertson Maree E. (EVP & CFO) | SELL | 48,500 | $2.99M |