Freeport-McMoRan Inc (FCX) stock analysis

P/E below its 5-year median

Freeport-McMoRan's P/E of 26.0 is below its own 5-year median of 28.6.

P/E above the industry

Freeport-McMoRan's P/E of 26.0 is above the Materials median of 21.9.

EV/EBITDA above its 5-year median

Freeport-McMoRan's EV/EBITDA of 11.4 is above its 5-year median of 8.5.

P/B above the industry

Freeport-McMoRan's price-to-book of 4.25 is above the Materials median of 2.40.

Trading above fair value

The share price of $62.12 is above our fair value estimate of $54.85.

Margin of safety under 20%

The price is 13.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.7% over the last twelve months; the Materials median is 11.1%.

Guidance lowered

Freeport-McMoRan lowered its year 2026 Consolidated molybdenum sales outlook on Oct 27, 2026.

Gross margin slipping

Gross margin was 28.0% over the last twelve months, against 29.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 21.1%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 44.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 95.4% five years ago to 44.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 66.2% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.02 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.98; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Freeport-McMoRan paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Freeport-McMoRan yields 1.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.