As of July 24, 2023, Freeport-McMoRan Inc (FCX, Financial) has seen a gain of 3.47% in its stock price, now valued at $42.02 per share. With a market capitalization of $60.2 billion, the company's key financial metrics present an interesting picture for potential investors. The GF Value, a unique indicator of a stock's intrinsic worth, stands at $39.84, suggesting that Freeport-McMoRan is currently fairly valued.
Freeport-McMoRan Inc is a global mining company with a diverse portfolio of assets. It boasts proven and probable mineral reserves of copper, gold, and molybdenum. The company's operations span across the Grasberg minerals district in Indonesia, the Morenci minerals district in Arizona, and the Cerro Verde operation in Peru. Its primary revenue source is the sale of copper.
GF Value of Freeport-McMoRan
The GF Value of Freeport-McMoRan is calculated based on historical trading multiples, an internal adjustment factor from GuruFocus based on past performance and growth, and future business performance estimates. If the stock's price is significantly above the GF Value Line, it may indicate overvaluation. Conversely, if it's below, the stock could be undervalued. Currently, Freeport-McMoRan's stock seems to be fairly valued, suggesting its long-term return is likely to align with the rate of its business growth.
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Financial Strength of Freeport-McMoRan
Assessing the financial strength of a company is crucial before investing. Companies with poor financial strength pose a higher risk. Freeport-McMoRan's cash-to-debt ratio stands at 0.7, ranking lower than 75.52% of companies in the Metals & Mining industry. However, its overall financial strength is rated 6 out of 10, indicating fair financial health.
Profitability of Freeport-McMoRan
Freeport-McMoRan has been profitable for 6 out of the past 10 years. With a revenue of $21.9 billion and Earnings Per Share (EPS) of $1.45 over the past twelve months, its operating margin is 25.14%, ranking better than 85.15% of companies in the Metals & Mining industry. Overall, Freeport-McMoRan's profitability ranks at 7 out of 10.
Growth of Freeport-McMoRan
Freeport-McMoRan's 3-year average revenue growth rate is better than 62.08% of companies in the Metals & Mining industry. Its 3-year average EBITDA growth rate is 58.4%, which ranks better than 93.27% of companies in the industry.
ROIC vs WACC
Comparing a company's return on invested capital (ROIC) and the weighted cost of capital (WACC) is another way to assess profitability. Freeport-McMoRan's ROIC stands at 9.17, while its WACC is 13.34.
Conclusion
Freeport-McMoRan (FCX, Financial) appears to be fairly valued. Its financial condition and profitability are fair, and its growth ranks better than most companies in the Metals & Mining industry. For more information about Freeport-McMoRan stock, check out its 30-Year Financials here.
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