What Is Going on With FCX Shares?

Shares of Freeport-McMoRan (FCX) jumped 4.5 % during today's afternoon session, bringing their 52 week performance to -6.6%. Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The large-cap Basic Materials company is based in Phoenix, United States and has 24,700 full time employees.

FCX Is Generating Cash

Freeport-McMoRan has decent free cash flows. This represents the actual cash that the company is generating from its sales revenues, minus its re-investments in the business (capital expenditures). The company's operating cash flows have an average growth rate of 65.9%, compared to None% for capital expenditures. From the table below we can also see that the free cash flows has an average growth rate of 152.9% and a coefficient of variability of 152.8%:

Date Reported Cash Flow from Operations ($) Capital expenditures ($) Free Cash Flow ($) YoY Growth (%)
2021-12-31 7,715,000,000.0 -2,115,000,000.0 5,600,000,000.0 430.3
2020-12-31 3,017,000,000.0 -1,961,000,000.0 1,056,000,000.0 190.26
2019-12-31 1,482,000,000.0 -2,652,000,000.0 -1,170,000,000.0 -161.84
2018-12-31 3,863,000,000.0 -1,971,000,000.0 1,892,000,000.0 n/a

Freeport-McMoRan's Operating Margins Are Growing

Date Reported Total Revenue ($) Operating Expenses ($) Operating Margins (%) YoY Growth (%)
2021-12-31 22,845,000,000.0 14,552,000,000.0 36.3 148.46
2020-12-31 14,198,000,000.0 12,123,000,000.0 14.61 238.98
2019-12-31 14,402,000,000.0 13,781,000,000.0 4.31 -82.27
2018-12-31 18,628,000,000.0 14,100,000,000.0 24.31 n/a

Freeport-McMoRan's cost of revenue is growing at a rate of 1.4% in contrast to 1.9% for operating expenses. Sales revenues, on the other hand, have experienced a 12.3% growth rate. As a result, the average gross margins growth is 22.9 and the average operating margins growth rate is 101.7, with coefficients of variability of 37.0% and 68.7% respectively.

We See Mixed Market Signals Regarding FCX

Freeport-McMoRan has an average rating of buy and target prices ranging from $55 to $23. At its current price of $37.76, the company is trading 2.76% away from its target price of $36.74. 1.9% of the company's shares are linked to short positions, and 79.3% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.