Now trading at a price of $47.38, Freeport-McMoRan has moved -1.5% so far today.
Freeport-McMoRan returned gains of 22.1% last year, with its stock price reaching a high of $55.24 and a low of $32.83. Over the same period, the stock underperformed the S&P 500 index by -1.7%. The company's 50-day average price was $50.8. 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 27,200 full time employees. Freeport-McMoRan has offered a 1.2% dividend yield over the last 12 months.
The Firm Has a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $18,628 | $14,402 | $14,198 | $22,845 | $22,780 | $22,855 |
| Operating Margins | 26% | 8% | 17% | 37% | 31% | 27% |
| Net Margins | 16% | -1% | 6% | 23% | 20% | 16% |
| Net Income (M) | $2,894 | -$189 | $865 | $5,365 | $4,479 | $3,751 |
| Net Interest Expense (M) | -$945 | -$620 | -$598 | -$602 | -$560 | -$515 |
| Depreciation & Amort. (M) | $1,754 | $1,412 | $1,528 | $1,998 | $2,019 | $2,068 |
| Diluted Shares (M) | 1,457 | 1,457 | 1,461 | 1,482 | 1,451 | 1,443 |
| Earnings Per Share | $1.78 | -$0.17 | $0.41 | $2.9 | $2.39 | $1.28 |
| EPS Growth | n/a | -109.55% | 341.18% | 607.32% | -17.59% | -46.44% |
| Avg. Price | $14.82 | $10.84 | $13.42 | $35.42 | $40.96 | $47.38 |
| P/E Ratio | 8.28 | -63.76 | 32.73 | 12.09 | 17.14 | 37.02 |
| Free Cash Flow (M) | $1,892 | -$1,170 | $1,056 | $5,600 | $1,670 | $455 |
| CAPEX (M) | $1,971 | $2,652 | $1,961 | $2,115 | $3,469 | $4,824 |
| EV / EBITDA | 4.36 | 13.32 | 8.88 | 5.99 | 7.91 | 9.78 |
| Total Debt (M) | $11,128 | $19,647 | $19,388 | $18,528 | $20,203 | $18,078 |
| Net Debt / EBITDA | 1.06 | 7.04 | 3.97 | 1.01 | 1.33 | 1.61 |
| Current Ratio | 3.14 | 2.47 | 2.72 | 2.52 | 2.46 | 2.42 |
Freeport-McMoRan benefits from growing revenues and increasing reinvestment in the business, an excellent current ratio of 2.42, and decent operating margins with a positive growth rate. The company's financial statements show generally positive cash flows and healthy leverage levels. However, the firm has declining EPS growth.
Freeport-McMoRan's Valuation Is in Line With Its Sector Averages:
Freeport-McMoRan has a trailing twelve month P/E ratio of 44.6, compared to an average of 22.71 for the Basic Materials sector. Based on its EPS guidance of $2.26, the company has a forward P/E ratio of 22.5. The 3.5% compound average growth rate of Freeport-McMoRan's historical and projected earnings per share yields a PEG ratio of 12.84. 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 4.01 is higher than the sector average of 3.12. The company's shares are currently trading 159.6% below their Graham number.
Freeport-McMoRan Has an Average Rating of Buy:
The 18 analysts following Freeport-McMoRan have set target prices ranging from $45.0 to $60.0 per share, for an average of $54.51 with a buy rating. The company is trading -13.1% 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 1.6% of the company's shares are sold short. Institutions own 83.8% of the company's shares, and the insider ownership rate stands at 0.63%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $5,719,295,471.
