Freeport-McMoRan, Inc. (FCX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Southern Copper Corp.

Carpenter Technology Corp.

Nexa Resources SA

ATI, Inc. (Texas)

Freeport-McMoRan, Inc.

Centrus Energy Corp.

MP Materials Corp.

Ivanhoe Electric, Inc.

Uranium Energy Corp.

U.S. Silica Holdings, Inc.

Ferroglobe PLC

Why is Freeport-McMoRan, Inc. ?

High Management Efficiency with a high ROCE of 34.16%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.47 times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 34.16%

Flat results in Jun 25

ROCE(HY) Lowest at 10.7%
INTEREST(Q) At USD 82 MM has Grown at 17.14%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.74 times

With ROCE of 27.45%, it has a expensive valuation with a 3.13 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.88%, its profits have fallen by -1.9%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Freeport-McMoRan, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Freeport-McMoRan, Inc.

50.03%

-0.08

48.69%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.62%

EBIT Growth (5y)

24.73%

EBIT to Interest (avg)

13.29

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.90

Tax Ratio

38.49%

Dividend Payout Ratio

39.41%

Pledged Shares

Institutional Holding

90.02%

ROCE (avg)

34.16%

ROE (avg)

25.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.63

EV to EBIT

10.62

EV to EBITDA

7.92

EV to Capital Employed

3.11

EV to Sales

2.76

PEG Ratio

Dividend Yield

1.46%

ROCE (Latest)

29.29%

ROE (Latest)

22.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

ROCE(HY)

Highest at 11.98%

-23What is not working for the Company

INTEREST(HY)

At USD 217 MM has Grown at 52.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 872.73

RAW MATERIAL COST(Y)

Grown by 55.07% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 34.07 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.63 times

NET SALES(Q)

Lowest at USD 5,240 MM

OPERATING PROFIT(Q)

Lowest at USD 960 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.32 %

PRE-TAX PROFIT(Q)

Lowest at USD 457 MM

NET PROFIT(Q)

Lowest at USD 178.49 MM

Here's what is not working for Freeport-McMoRan, Inc.

Net Sales

At USD 5,240 MM has Fallen at -18.66%

over average net sales of the previous four periods of USD 6,442 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 457 MM has Fallen at -72.1%

over average net sales of the previous four periods of USD 1,638 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 178.49 MM has Fallen at -61.64%

over average net sales of the previous four periods of USD 465.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 872.73

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 217 MM has Grown at 52.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 5,240 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 960 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 18.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 457 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 178.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 34.07 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 55.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.12 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income