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

MP Materials Corp.

ATI, Inc. (Texas)

Freeport-McMoRan, Inc.

Ivanhoe Electric, Inc.

Ferroglobe PLC

Centrus Energy Corp.

U.S. Silica Holdings, Inc.

Uranium Energy Corp.

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 hold?

Overall Portfolio exposure to Freeport-McMoRan, Inc. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Freeport-McMoRan, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Freeport-McMoRan, Inc.

71.05%

-0.08

48.69%

S&P 500

21.51%

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

92.72%

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

4.67

EV to EBIT

16.37

EV to EBITDA

11.76

EV to Capital Employed

3.85

EV to Sales

3.73

PEG Ratio

Dividend Yield

1.10%

ROCE (Latest)

23.54%

ROE (Latest)

19.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

ROCE(HY)

Highest at 15.3%

NET PROFIT(Q)

Highest at USD 984 MM

EPS(Q)

Highest at USD 0.68

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 5,900 MM

INTEREST(HY)

At USD 209 MM has Grown at 37.5%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 22%

RAW MATERIAL COST(Y)

Grown by 9.78% (YoY

CASH AND EQV(HY)

Lowest at USD 8,375 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.57 times

Here's what is working for Freeport-McMoRan, Inc.

Net Profit

Highest at USD 984 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 984 MM has Grown at 67.41%

over average net sales of the previous four periods of USD 587.78 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

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

Interest

At USD 209 MM has Grown at 37.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 5,900 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 8,375 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 22%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 9.78% (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