What Freeport-McMoRan Investors Are Talking About Today.

Now trading at a price of $43.75, Freeport-McMoRan has moved -2.0% so far today.

Freeport-McMoRan returned gains of 50.0% last year, with its stock price reaching a high of $46.73 and a low of $26.03. Over the same period, the stock outperformed the S&P 500 index by 37.0%. More recently, the company's 50-day average price was $38.99. Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. Based in Phoenix, AZ, the large-cap Basic Materials company has 25,600 full time employees. Freeport-McMoRan has not offered a dividend during the last year.

Growing Revenues With Increasing Reinvestment in the Business:

2020-02-14 2021-02-16 2022-02-15 2023-02-15
Revenue (MM) $14,402 $14,198 $22,845 $22,780
Operating Margins 5.4% 15.0% 36.7% 31.4%
Net Margins -1.66% 4.22% 18.85% 15.22%
Net Income (MM) -$239 $599 $4,306 $3,468
Net Interest Expense (MM) -$620 -$598 -$602 -$560
Depreciation & Amort. (MM) -$1,412 -$1,528 -$1,998 -$2,019
Earnings Per Share -$0.16 $0.41 $2.91 $1.47
EPS Growth n/a 356.25% 609.76% -49.48%
Diluted Shares (MM) 1,451 1,461 1,482 1,433
Free Cash Flow (MM) $2,073 $3,048 $8,200 $6,771
Capital Expenditures (MM) -$591 -$31 -$485 -$1,632
Net Current Assets (MM) -$15,446 -$14,173 -$10,173 -$10,609
Current Ratio 2.47 2.72 2.52 2.46
Long Term Debt (MM) $9,821 $9,677 $9,078 $9,583
Net Debt / EBITDA 6.08 3.4 0.3 0.65

Freeport-McMoRan benefits from growing revenues and increasing reinvestment in the business, exceptional EPS growth, and an excellent current ratio. The company's financial statements show low leverage and generally positive cash flows. Furthermore, Freeport-McMoRan has average net margins with a positive growth rate.

Freeport-McMoRan's P/B and P/E Ratios Are Higher Than Average:

Freeport-McMoRan has a trailing twelve month P/E ratio of 26.5, compared to an average of 10.03 for the Basic Materials sector. Based on its EPS guidance of $2.1, the company has a forward P/E ratio of 18.6. According to the 69.8% compound average growth rate of Freeport-McMoRan's historical and projected earnings per share, the company's PEG ratio is 0.38. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 11.5%. On this basis, the company's PEG ratio is 2.31. This suggests that these shares are overvalued. Furthermore, Freeport-McMoRan is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.02 is higher than the sector average of 2.08. The company's shares are currently trading 159.6% above their Graham number. Overall, Freeport-McMoRan's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.

Freeport-McMoRan Has an Average Rating of Buy:

The 20 analysts following Freeport-McMoRan have set target prices ranging from $29.0 to $57.0 per share, for an average of $45.77 with a buy rating. As of April 2023, the company is trading -14.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Freeport-McMoRan has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 81.0% of the company's shares, and the insider ownership rate stands at 0.57%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $5,192,984,781.

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.