Freeport-McMoRan (FCX) AI Stock Analysis

• Market Cap: $65.78B
• Dividend Yield: 1.31%
• Average Volume (3M): 11.34M
• Price to Earnings (P/E): 37.8
• Beta (1Y): 1.57
• Revenue Growth: 2.84%
• EPS Growth: 6.35%
• Country: US
• Employees: 28,500
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Copper
• EPS (TTM): 0.24
• Shares Outstanding: 1,436,200,200
• 10 Day Avg. Volume: 12,820,160
• 30 Day Avg. Volume: 11,340,566
• PEG Ratio: -4.78
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.19
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 8.70
• Enterprise Value/Ebitda: 1.66
• 1Y Price Target: $46.18
• Price Target Upside: 0.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $47.00 ▲(2.62%Upside)

Freeport-McMoRan's overall stock score is driven by strong technical indicators and positive earnings call guidance, indicating robust future sales and operational improvements. Financial performance is solid but challenged by cash flow management, while valuation metrics suggest potential overvaluation.

Positive Factors

Earnings

Freeport reported a 1Q EBITDA beat as copper sales volumes, realized prices, and unit costs all outperformed the company's guidance.

Share Repurchases

A step-up in share repurchases would be a clear positive for Freeport.

Negative Factors

Geopolitical Issues

Ongoing issues in Indonesia, rising capex, and geopolitical issues/trade wars are likely factors for the decoupling between Freeport and the copper price.

Tariffs

Management noted that US costs could increase by as much as 5% due to tariffs on imported items.

Freeport-McMoRan Business Overview & Revenue Model

Company Description

Freeport-McMoRan Inc. (FCX) is a leading international mining company with headquarters in Phoenix, Arizona. The company operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. FCX is one of the world's largest publicly traded copper producers, and its operations are primarily located in North America, South America, and Indonesia. The company's portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant mining operations in the Americas.

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 displays a solid financial position with robust profitability and operational efficiency. The balance sheet is stable with moderate leverage, but there is potential risk from reduced free cash flow due to high capital expenditures.

Income Statement

Freeport-McMoRan displayed robust financial health in the TTM period, with a Gross Profit Margin of 28.82% and a Net Profit Margin of 7.11%. The revenue showed a slight decline from the previous year, with a revenue growth rate of -2.32%. Despite this, the EBIT and EBITDA margins remain strong at 26.27% and 35.93%, respectively, indicating good operational efficiency and profitability.

Balance Sheet

The company maintains a solid equity base, with an Equity Ratio of 31.57%. The Debt-to-Equity Ratio stands at 0.53, indicating a moderate level of leverage. Return on Equity is 9.99%, reflecting a reasonable return for shareholders. Overall, the balance sheet remains stable, though there is room for improvement in asset utilization and debt management.

Cash Flow

Free Cash Flow has decreased by 32.16% year-over-year, highlighting challenges in cash generation. The Operating Cash Flow to Net Income Ratio is strong at 3.58, but the Free Cash Flow to Net Income Ratio is lower at 0.90, suggesting that capital expenditures are impacting cash flow. The company needs to manage its capital expenditures more effectively to improve free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.86B	25.45B	22.86B	22.78B	22.84B	14.20B
Gross Profit	7.17B	7.66B	7.16B	7.69B	8.81B	2.54B
EBITDA	8.94B	9.47B	8.59B	9.29B	10.26B	3.92B
Net Income	1.77B	1.89B	1.84B	3.47B	4.31B	853.00M
Balance Sheet
Total Assets	56.02B	54.85B	52.51B	51.09B	48.02B	42.14B
Cash, Cash Equivalents and Short-Term Investments	4.84B	3.92B	4.76B	8.15B	8.07B	3.66B
Total Debt	9.40B	9.74B	9.85B	10.62B	9.45B	9.71B
Total Liabilities	26.81B	26.07B	25.20B	26.22B	25.00B	23.48B
Stockholders Equity	17.69B	17.58B	16.69B	15.55B	13.98B	10.17B
Cash Flow
Free Cash Flow	1.60B	2.35B	455.00M	1.67B	5.60B	1.06B
Operating Cash Flow	6.32B	7.16B	5.28B	5.14B	7.71B	3.02B
Investing Cash Flow	-4.93B	-5.03B	-4.96B	-3.44B	-1.96B	-1.26B
Financing Cash Flow	-2.79B	-3.28B	-2.65B	-1.62B	-1.34B	-128.00M

Freeport-McMoRan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 45.8 is above the 20-day moving average (MA) of 42.37, above the 50-day MA of 39.86, and above the 200-day MA of 40.60, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 69.44 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, 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	81 Outperform	$66.67B	13.45	16.64%	1.67%	48.69%	―
RIO	75 Outperform	$99.47B	8.29	20.93%	7.62%	-0.81%	14.59%
FCX	74 Outperform	$65.78B	37.80	10.10%	1.31%	2.84%	6.35%
VALE	70 Neutral	$43.49B	7.52	15.98%	14.58%	-9.59%	-25.35%
Sector *	70 Neutral	¥175.94B	11.15	6.37%	3.52%	3.93%	6.03%
SCCO	69 Neutral	$85.12B	23.64	41.93%	2.62%	23.23%	53.35%
MT	69 Neutral	$26.40B	19.21	2.60%	0.72%	-8.56%	68.36%

Freeport-McMoRan Corporate Events

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.

Freeport-McMoRan Reports Strong Q1 2025 Earnings

In the first quarter of 2025, Freeport-McMoRan reported a net income of $352 million, with copper sales exceeding expectations and gold sales impacted by shipment timing. The company is advancing its new smelter in Indonesia, set to start mid-2025, and is benefiting from favorable pricing for its products. Freeport maintains a strong financial position, with significant operating cash flows and capital expenditures aimed at major mining projects and new processing facilities.