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Freeport-mcmoran Inc

FCX

Metal Mining

Mkt Cap

$54.01B

PE

25.04

Debt

$9.44B

Cash

$6.539B

EV

$56.91B

FCF

$519M

Market Cap

$54.01B

P/E Ratio

25.04

Debt

$9.44B

Cash

$6.539B

EV

$56.91B

FCF

$519M
Charts data: {"Earnings":[{"time":"2014-12-30","value":-1308000000},{"time":"2015-12-30","value":-12236000000},{"time":"2016-12-30","value":-4154000000},{"time":"2017-12-30","value":1817000000},{"time":"2018-12-30","value":2602000000},{"time":"2019-12-30","value":-239000000},{"time":"2020-12-30","value":599000000},{"time":"2021-12-30","value":4306000000},{"time":"2022-12-30","value":3468000000}],"Sales":[{"time":"2014-12-30","value":20001000000},{"time":"2015-12-30","value":14607000000},{"time":"2016-12-30","value":14830000000},{"time":"2017-12-30","value":16403000000},{"time":"2018-12-30","value":18628000000},{"time":"2019-12-30","value":14402000000},{"time":"2020-12-30","value":14198000000},{"time":"2021-12-30","value":22845000000},{"time":"2022-12-30","value":22780000000}],"Net Margins":[{"time":"2014-12-30","value":-0.06539673016349183},{"time":"2015-12-30","value":-0.8376805641130964},{"time":"2016-12-30","value":-0.2801078894133513},{"time":"2017-12-30","value":0.11077241967932695},{"time":"2018-12-30","value":0.13968219884045524},{"time":"2019-12-30","value":-0.016594917372587142},{"time":"2020-12-30","value":0.04218904070995915},{"time":"2021-12-30","value":0.18848763405559205},{"time":"2022-12-30","value":0.15223880597014924}],"Assets":[{"time":"2014-12-30","value":58795000000},{"time":"2015-12-30","value":46577000000},{"time":"2016-12-30","value":37317000000},{"time":"2017-12-30","value":37302000000},{"time":"2018-12-30","value":42216000000},{"time":"2019-12-30","value":40809000000},{"time":"2020-12-30","value":42144000000},{"time":"2021-12-30","value":48022000000},{"time":"2022-12-30","value":51093000000}],"Stockholders Equity":[{"time":"2014-12-30","value":22474000000},{"time":"2015-12-30","value":12044000000},{"time":"2016-12-30","value":9257000000},{"time":"2017-12-30","value":11296000000},{"time":"2018-12-30","value":17892000000},{"time":"2019-12-30","value":17448000000},{"time":"2020-12-30","value":18668000000},{"time":"2021-12-30","value":23019000000},{"time":"2022-12-30","value":24871000000}],"ROE":[{"time":"2014-12-30","value":-0.05820058734537688},{"time":"2015-12-30","value":-1.0159415476585851},{"time":"2016-12-30","value":-0.4487414929242735},{"time":"2017-12-30","value":0.16085339943342777},{"time":"2018-12-30","value":0.14542812430136373},{"time":"2019-12-30","value":-0.01369784502521779},{"time":"2020-12-30","value":0.03208699378615813},{"time":"2021-12-30","value":0.1870628611147313},{"time":"2022-12-30","value":0.1394395078605605}],"ROA":[{"time":"2014-12-30","value":0.001649800153074241},{"time":"2015-12-30","value":-0.287309186937759},{"time":"2016-12-30","value":-0.07481844735643273},{"time":"2017-12-30","value":0.0973942415956249},{"time":"2018-12-30","value":0.11261133219632367},{"time":"2019-12-30","value":0.02673429880663579},{"time":"2020-12-30","value":0.05782555049354594},{"time":"2021-12-30","value":0.17421181958269127},{"time":"2022-12-30","value":0.1377292388389799}]}

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. It primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. The company's 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. It also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. 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.

Sector

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$519M$489.4M$461.5M$435.1M$410.3M$386.9M$364.8M$344M$324.4M$305.9M$288.4M$2.884B
DCF$425.6M$348.9M$286.1M$234.6M$192.4M$157.7M$129.3M$106M$86.96M$71.3M$713M
Value$2.752B

In the chart Earnings are multiplied by this value.

Earnings Growth 22%
Earnings Stability -19%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin-6.5%-84%-28%11%14%-1.7%4.2%19%15%9.5%
ROA0.16%-29%-7.5%9.7%11%2.7%5.8%17%14%12%
ROE-5.8%-100%-45%16%15%-1.4%3.2%19%14%8.1%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.28%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.18%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.11%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.19%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +10.85%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.18%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF--6.7318.844.445.90-8.409.231.756.9818.19
Debt Equity0.871.751.861.290.620.560.520.430.470.35
MIN
Graham Stability------270%43%100%100%-270%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 18.19.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.51.

What is the Graham’s Stability?

Graham’s Stability measure stands at -2.71.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201512-201712-201912-2021Trend
Revenue6.6%6.8%17%-0.28%4.9%
Net Income-14%--19%32%
Stockholders Equity11%17%13%8%6%
FCF--13%--70%-6.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.79%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +4.9%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.8%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +32.23%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +17.1%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +6.04%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -12.59%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -6.46%.