Freeport-McMoRan (FCX) AI Stock Analysis

• Market Cap: $64.03B
• Dividend Yield: 1.33%
• Average Volume (3M): 14.02M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.55
• Revenue Growth: 5.98%
• EPS Growth: N/A
• Country: US
• Employees: 28,500
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Copper
• EPS (TTM): 0.54
• Shares Outstanding: 1,436,200,200
• 10 Day Avg. Volume: 14,780,591
• 30 Day Avg. Volume: 14,017,319
• PEG Ratio: 1.36
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.72
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: -5.52
• Enterprise Value/Ebitda: -1.94
• 1Y Price Target: $52.39
• Price Target Upside: 16.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $51.00 ▲(13.61%Upside)

Freeport-McMoRan benefits from strong financial performance and positive earnings call insights, particularly regarding operational efficiency and strategic initiatives. However, technical indicators suggest a neutral to slightly bullish market position, and valuation metrics point to potential overvaluation concerns. Overall, the company is well-positioned for growth, but faces challenges in maintaining revenue stability and addressing tariff impacts.

Positive Factors

Earnings

Freeport-McMoRan reported Q2 EBITDA that surpassed both BofAe and consensus forecasts due to higher volume/pricing and lower costs.

Market Position

Freeport-McMoRan is expected to benefit from Section 232, and analysts predict its stock to outperform peers due to its significant US operations.

Operations

The new Indonesian smelter started up as planned, with ramp-up progressing well towards year-end 2025.

Negative Factors

Costs

Freeport-McMoRan expects a 5% increase in the cost of goods in the US due to supplier pass-through of tariffs.

Market Dynamics

Copper markets face challenges with distorted prices due to US stockpiling ahead of Section 232, leading to anticipated post-Section 232 weakness.

Sales Guidance

Freeport-McMoRan reduced its 2025 sales guidance for copper, gold, and molybdenum from prior forecasts.

Freeport-McMoRan Business Overview & Revenue Model

Company Description

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Freeport-McMoRan generates revenue primarily through the extraction, processing, and sale of copper, gold, and molybdenum. The company’s revenue model is heavily reliant on the global demand and pricing of these commodities, which are influenced by market conditions, economic cycles, and geopolitical factors. FCX sells its products to a diverse range of customers, including industrial manufacturers, smelters, and commodity traders. The company's key revenue streams include the sale of copper concentrate and cathodes, gold, and molybdenum. Additionally, FCX has significant joint ventures and partnerships, such as its collaboration with the Indonesian government in the Grasberg mine, which contribute to its earnings by providing operational synergies and access to vast mineral reserves. The company's financial performance is also impacted by its ability to efficiently manage production costs, optimize its mining operations, and invest in technological advancements to enhance productivity.

Freeport-McMoRan Financial Statement Overview

Summary

Freeport-McMoRan's financial statements demonstrate strong profitability, low leverage, and robust cash flow generation. Key highlights include a significant net profit margin of 46.61%, a low debt-to-equity ratio of 0.02, and a substantial free cash flow growth rate of 75.29%. These factors indicate financial resilience and operational efficiency, though the volatility in revenue growth remains a concern.

Income Statement

Freeport-McMoRan's income statement shows strong profitability with a healthy gross profit margin of 27.97% and a robust net profit margin of 46.61% for the TTM period. The company demonstrates solid EBIT and EBITDA margins of 55.29% and 76.61% respectively, indicating efficient operations. However, revenue growth has been volatile, with recent TTM revenue slightly lower than the previous annual figures, suggesting potential challenges in maintaining consistent top-line growth.

Balance Sheet

The balance sheet reveals a strong equity position with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The return on equity is impressive at 32.03%, reflecting effective use of shareholder funds. Additionally, the equity ratio stands at 32.24%, showcasing a balanced capital structure with a substantial equity base. Overall, the balance sheet exhibits financial stability and resilience.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.13, indicating robust cash generation relative to profits. The free cash flow growth rate is significant at 75.29% for the TTM period, reflecting improved cash efficiency. Furthermore, the free cash flow to net income ratio of 0.71 highlights strong cash conversion from earnings. These metrics underscore the company's ability to generate cash and invest in growth opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.45B	22.86B	22.78B	22.84B	14.20B
Gross Profit	7.66B	7.16B	7.69B	8.81B	2.54B
EBITDA	9.47B	8.59B	9.29B	10.26B	3.92B
Net Income	1.89B	1.84B	3.47B	4.31B	853.00M
Balance Sheet
Total Assets	54.85B	52.51B	51.09B	48.02B	42.14B
Cash, Cash Equivalents and Short-Term Investments	3.92B	4.76B	8.15B	8.07B	3.66B
Total Debt	9.74B	9.85B	10.62B	9.45B	9.71B
Total Liabilities	26.07B	25.20B	26.22B	25.00B	23.48B
Stockholders Equity	17.58B	16.69B	15.55B	13.98B	10.17B
Cash Flow
Free Cash Flow	2.35B	455.00M	1.67B	5.60B	1.06B
Operating Cash Flow	7.16B	5.28B	5.14B	7.71B	3.02B
Investing Cash Flow	-5.03B	-4.96B	-3.44B	-1.96B	-1.26B
Financing Cash Flow	-3.28B	-2.65B	-1.62B	-1.34B	-128.00M

Freeport-McMoRan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCX, the sentiment is Positive. The current price of 44.89 is below the 20-day moving average (MA) of 45.00, above the 50-day MA of 42.11, and above the 200-day MA of 40.33, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCX.

Freeport-McMoRan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEM	83 Outperform	$68.46B	13.79	20.26%	1.52%	39.02%	―
FCX	78 Outperform	$64.03B	33.66	10.74%	1.33%	5.98%	―
RIO	76 Outperform	$108.59B	8.96	21.04%	6.36%	-0.28%	15.20%
VALE	70 Neutral	$43.70B	7.65	15.98%	8.31%	-9.59%	-25.35%
SCCO	69 Neutral	$79.99B	22.21	41.93%	2.71%	23.23%	53.35%
MT	69 Neutral	$27.87B	20.47	2.60%	1.44%	-8.56%	68.36%
Sector *	63 Neutral	$10.49B	10.77	1.52%	2.68%	2.24%	-33.79%

Freeport-McMoRan Corporate Events

Freeport-McMoRan Reports Strong Q2 2025 Financial Results

In the second quarter of 2025, Freeport-McMoRan reported strong financial performance with net income attributable to common stock totaling $772 million. The company exceeded its sales guidance for copper and gold, benefiting from favorable pricing. Significant milestones included the startup of a new copper smelter in Indonesia and advancements in copper leaching initiatives. Freeport-McMoRan maintained a strong financial position with operating cash flows of $2.2 billion and capital expenditures of $1.3 billion, reinforcing its commitment to growth and efficiency.

The most recent analyst rating on (FCX) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Freeport-McMoRan stock, see the FCX Stock Forecast page.

Freeport-McMoRan Approves 2025 Stock Incentive Plan

At the 2025 Annual Meeting of Freeport-McMoRan Inc. held on June 11, 2025, stockholders approved the 2025 Stock Incentive Plan, which replaces the 2016 Plan and authorizes the issuance of up to 43,820,000 shares of common stock. The meeting also saw the election of twelve directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent accounting firm for 2025. The Plan’s approval is expected to impact the company’s operations by providing a new framework for stock-based compensation, potentially influencing employee incentives and aligning interests with stakeholders.

The most recent analyst rating on (FCX) stock is a Hold with a $58.00 price target. To see the full list of analyst forecasts on Freeport-McMoRan stock, see the FCX Stock Forecast page.