Freeport-McMoRan (FCX) AI Stock Analysis

• Market Cap: $47.93B
• Dividend Yield: 1.59%
• Average Volume (3M): 22.22M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.68
• Revenue Growth: 3.57%
• EPS Growth: N/A
• Country: US
• Employees: 28,500
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Copper
• EPS (TTM): 0.31
• Shares Outstanding: 1,437,073,000
• 10 Day Avg. Volume: 28,650,027
• 30 Day Avg. Volume: 22,215,310
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.27
• Price to Cash Flow (P/CF): 10.10
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.29
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.33
• Price Target Upside: 20.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Freeport-McMoRan's overall stock score reflects solid financial performance with strong profitability and operational efficiency, though offset by challenges in cash flow management. The technical analysis indicates mixed signals, with some caution advised due to overbought indicators. Valuation appears high relative to peers, but the company’s strong market positioning and strategic initiatives highlighted in the recent earnings call provide a positive outlook. Key risks include geopolitical issues and increased capital expenditures.

Positive Factors

Earnings

Freeport reported a 1Q EBITDA beat as copper sales volumes, realized prices and unit costs all beat what the company had guided to.

Production and Growth Potential

Freeport accounts for about 70% of refined US copper production and has massive resources and organic growth potential in the country.

Share Repurchases

Freeport repurchased shares for the first time since 3Q'24 by repurchasing 2.3m shares for $80m, indicating potential for further share repurchases.

Negative Factors

Cost Challenges

Tariffs could raise costs in North America by 5%, although FCX is trying to mitigate the impact.

Operational Costs

Costs in the US have been high for Freeport but are trending lower due to operating improvements, the benefit of low-cost leaching initiatives, and other technological improvements.

Tariffs and Costs

Management did note that its 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 headquartered in Phoenix, Arizona. It is primarily engaged in the exploration, mining, and production of natural resources, with a strong focus on copper, gold, and molybdenum. The company operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. Freeport-McMoRan's portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, as well as significant mining operations in North America, South America, and the Democratic Republic of Congo.

How the Company Makes Money

Freeport-McMoRan generates revenue primarily through the sale of copper, gold, and molybdenum, which are extracted from its mining operations. Copper is the largest contributor to the company's revenue, driven by its widespread use in electrical equipment, construction, and various industrial applications. Gold and molybdenum, valuable by-products of copper mining, also provide significant revenue streams. The company's earnings are influenced by commodity prices, which are determined by global supply and demand dynamics. Additionally, Freeport-McMoRan engages in strategic partnerships and joint ventures to optimize its operations and expand its resources, such as its collaboration with the Indonesian government for the Grasberg mine. The company's financial performance is also affected by operational efficiencies, cost management strategies, and investments in sustainable mining practices.

Freeport-McMoRan Financial Statement Overview

Summary

Freeport-McMoRan displays a solid financial position with robust profitability and operational efficiency, despite a slight decline in revenue. The balance sheet is stable with moderate leverage, but there is potential risk from reduced free cash flow due to high capital expenditures. Overall, the company is well-positioned but needs to focus on improving cash flow management to enhance its financial flexibility.

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
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
	EBIT
6.86B	6.22B	7.04B	8.37B	2.44B
	EBITDA
9.47B	8.59B	9.29B	10.26B	3.92B
	Net Income Common Stockholders
1.89B	1.84B	3.47B	4.31B	853.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.92B	4.76B	8.15B	8.07B	3.66B
	Total Assets
54.85B	52.51B	51.09B	48.02B	42.14B
	Total Debt
9.74B	9.85B	10.62B	9.45B	9.71B
	Net Debt
5.82B	5.09B	2.47B	1.38B	6.05B
	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: 37.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 37.6 is above the 20-day moving average (MA) of 34.06, above the 50-day MA of 36.38, and below the 200-day MA of 41.07, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.85 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	81 Outperform	$57.35B	11.57	16.64%	1.94%	48.69%	―
RIO	74 Outperform	$97.72B	8.01	20.93%	6.69%	-0.81%	14.59%
SCCO	74 Outperform	$67.38B	19.70	41.93%	2.17%	23.23%	53.35%
MT	73 Outperform	$25.14B	18.03	2.60%	1.39%	-8.56%	68.36%
VALE	68 Neutral	$39.85B	6.99	15.98%	7.97%	―	―
FCX	66 Neutral	$47.93B	25.59	10.13%	1.59%	3.57%	―
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%

Freeport-McMoRan Corporate Events

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.

Spark’s Take on FCX Stock

According to Spark, TipRanks’ AI Analyst, FCX is a Outperform.

Freeport-McMoRan demonstrates strong financial performance and strategic growth initiatives, particularly in copper production, contributing positively to the score. Technical analysis indicates caution due to downward momentum, while the valuation is moderate. The earnings call reflects optimism but also highlights challenges such as geopolitical risks and increased capital expenditures. Overall, the company is well-positioned but must manage external risks and capital investments carefully.

To see Spark’s full report on FCX stock, click here.

Freeport-McMoRan Updates on Q1 2025 Operations

On March 31, 2025, Freeport-McMoRan provided an operational update for the first quarter of 2025, indicating that copper and gold production met expectations. However, gold sales were impacted by shipment timing in Indonesia, although no material effect on annual sales guidance is anticipated. The company resumed concentrate export shipments from Indonesia after regulatory approvals and continues to ramp up production at its new precious metals refinery. Despite higher unit net cash costs due to shipment timing, the company expects its consolidated copper sales to align with previous guidance and anticipates higher realized copper prices compared to the London Metal Exchange average.