Freeport-McMoRan logged a 1.0% change during today's afternoon session, and is now trading at a price of $44.2 per share.
Freeport-McMoRan returned gains of 17.5% last year, with its stock price reaching a high of $55.24 and a low of $36.04. Over the same period, the stock underperformed the S&P 500 index by -14.5%. The company's 50-day average price was $46.89. 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 1.4% 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 | $44.2 |
| P/E Ratio | 8.28 | -63.76 | 32.73 | 12.09 | 17.14 | 34.53 |
| 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 | 9.23 |
| 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 has growing revenues and increasing reinvestment in the business and strong operating margins with a stable trend. Additionally, the company's financial statements display an excellent current ratio of 2.42 and healthy leverage levels. However, the firm suffers from declining EPS growth and positive cash flows.
Freeport-McMoRan's Valuation Is in Line With Its Sector Averages:
Freeport-McMoRan has a trailing twelve month P/E ratio of 34.0, compared to an average of 24.53 for the Basic Materials sector. Based on its EPS guidance of $2.16, the company has a forward P/E ratio of 21.7. The 2.8% compound average growth rate of Freeport-McMoRan's historical and projected earnings per share yields a PEG ratio of 12.12. 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 3.62 is higher than the sector average of 2.64. The company's shares are currently trading 142.2% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Freeport-McMoRan:
The 21 analysts following Freeport-McMoRan have set target prices ranging from $25.0 to $62.0 per share, for an average of $53.39 with a buy rating. The company is trading -17.2% 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 1.7% of the company's shares are sold short. Institutions own 85.0% 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 9% stake in the company is worth $5,417,882,365.
