FREEPORT-MCMORAN INC (FCX) Stock Analysis
FREEPORT-MCMORAN INC (FCX) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
FREEPORT-MCMORAN INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 8.8% | Near cost of capital |
| FCF Margin | 4.3% | Cash flow pressure |
| Debt/Equity | 0.5x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore FREEPORT-MCMORAN INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: FREEPORT-MCMORAN INC earns 8.8% ROIC, Top 50% in Materials
FREEPORT-MCMORAN INC's trailing-twelve-month ROIC of 8.8% ranks Top 50% in Materials companies (sector median: 4.3%), driven by NOPAT margin of 16.4% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-11-06. Gross margin of 28.2% with operating margin at 25.2% reflects a competitive pricing environment.
| Metric | FCX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.8% | Adequate | Above sector median of 4.3% |
| Return on Equity (ROE) | 12.1% | Adequate | Moderate equity returns |
| Gross Margin | 28.2% | Adequate | Competitive pricing environment |
| Operating Margin | 25.2% | Excellent | Efficient operations |
Cash Flow: FREEPORT-MCMORAN INC generates $1.1B FCF at 4.3% margin, positive NaN/8 quarters
FREEPORT-MCMORAN INC generated $1.1B in free cash flow (TTM), a 4.3% FCF margin, a margin that ranks Top 50% in Materials. Operating cash flow exceeds net income by 2.5x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | FCX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 4.3% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $1.1B | Good | Positive cash generation |
| OCF/Net Income | 2.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: FREEPORT-MCMORAN INC at 0.5x leverage
FREEPORT-MCMORAN INC's debt-to-equity ratio of 0.5x reflects moderate leverage. Total debt of $9.4B offset by $4.2B in cash. Source: 10-Q filed 2025-11-06.
| Metric | FCX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $-5.2B | Warning | Net debt position |
Valuation: FREEPORT-MCMORAN INC trades at 33.1x earnings
FREEPORT-MCMORAN INC trades at a P/E of 33.1x. Free cash flow yield of 1.5% reflects market expectations for growth.
| Metric | FCX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 33.1x | Adequate | Premium valuation |
| EV/Sales | 3.0x | Good | Attractive revenue multiple |
| FCF Yield | 1.5% | Warning | Lower cash yield |
| Dividend Yield | 1.2% | Adequate | Growth focus over income |
Capital Allocation: FREEPORT-MCMORAN INC returns 1.3% shareholder yield
FREEPORT-MCMORAN INC's total shareholder yield is 1.3% (dividends 1.2% + buybacks 0.1%). Source: 10-Q filed 2025-11-06.
| Metric | FCX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.3% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.1% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $972.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.8% | Top 50% | 2.1x above |
| Free Cash Flow Margin | 4.3% | Top 50% | 11.7x above |
| Gross Margin | 28.2% | Top 50% | 1.1x above |
| Operating Margin | 25.2% | Top 25% | 3.3x above |
| Return on Equity (ROE) | 12.1% | Top 50% | 1.7x above |
| P/E Ratio | 33.1x | N/A | - |
Financial Scorecard
| Metric | FCX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 8.8% | Adequate | Top 50% of sector (median: 4.3%) |
| Free Cash Flow Margin | 4.3% | Warning | Top 50% of sector (median: 0.4%) |
| Gross Margin | 28.2% | Adequate | Top 50% of sector (median: 25.2%) |
| Debt to Equity Ratio | 49.6% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 33.1x | Adequate | Growth premium |
| Free Cash Flow Yield | 1.5% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is FREEPORT-MCMORAN INC's Return on Invested Capital (ROIC)?
FREEPORT-MCMORAN INC (FCX) has a trailing twelve-month Return on Invested Capital (ROIC) of 8.8%. This compares above the sector median of 4.3%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is FREEPORT-MCMORAN INC's Free Cash Flow Margin?
FREEPORT-MCMORAN INC (FCX) has a free cash flow margin of 4.3%, generating $1.1 billion in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is FREEPORT-MCMORAN INC stock overvalued or undervalued?
FREEPORT-MCMORAN INC (FCX) trades at a P/E ratio of 33.1x, which is above the sector median of N/A. The EV/Sales multiple is 3.0x. Free cash flow yield is 1.5%, reflecting growth expectations priced into the stock.
Q: Does FREEPORT-MCMORAN INC pay a dividend?
FREEPORT-MCMORAN INC (FCX) currently pays a dividend yield of 1.2%. Including share buybacks, the total shareholder yield is 1.3%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is FREEPORT-MCMORAN INC's revenue and earnings growth?
FREEPORT-MCMORAN INC (FCX) grew revenue by 1.8% year-over-year. Earnings per share increased by 16.8% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is FREEPORT-MCMORAN INC buying back stock?
FREEPORT-MCMORAN INC (FCX) repurchased $107.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.1%.
Q: How does FREEPORT-MCMORAN INC compare to competitors in Materials?
Compared to other companies in Materials, FREEPORT-MCMORAN INC (FCX) shows: ROIC of 8.8% is above the sector median of 4.3% (Top 40%). FCF margin of 4.3% exceeds the sector median of 0.4% (Top 38% of sector). Gross margin at 28.2% is 2.9 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with FREEPORT-MCMORAN INC?
Investors in FREEPORT-MCMORAN INC (FCX) should monitor these potential warning signs: 1) FCF margin is thin at 4.3%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.