Freeport-Mcmoran Inc (NYSE: FCX)

Sector: Basic Materials Industry: Copper CIK: 0000831259
Market Cap 50.61 Bn
P/B 5.55
P/E 20.03
P/S 3.37
ROIC (Qtr) 15.20
Div Yield % 0.38
Rev 1y % (Qtr) -1.52
Total Debt (Qtr) 10.39 Bn
Debt/Equity (Qtr) 0.55
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About

Investment thesis

Bull case

  • Strong operating cash flow of 5.61B provides robust 0.54x coverage of total debt 10.39B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 4.05B provide 8.70x coverage of short-term debt 466M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 58.17B provides 5.60x coverage of total debt 10.39B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 5.61B provides exceptional 15.20x coverage of interest expenses 369M, showing strong debt service capability.
  • Operating cash flow of 5.61B provides strong 46.36x coverage of stock compensation 121M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 5.61B barely covers its investment activities of (4.47B), with a coverage ratio of -1.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.47B) provide weak support for R&D spending of 192M, which is -23.29x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 5.61B provides thin coverage of dividend payments of (865M) with a -6.49 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 1.62B provides weak coverage of capital expenditures of 3.99B, with a 0.41 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 4.79B show weak coverage of depreciation charges of 2.24B, with a 2.14 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Copper
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SCCO Southern Copper Corp/ 156.08 Bn 124.92 27.85 7.43 Bn
2 FCX Freeport-Mcmoran Inc 50.61 Bn 20.03 3.37 10.39 Bn
3 HBM Hudbay Minerals Inc. 10.18 Bn 21.72 4.93 1.34 Bn
4 ERO Ero Copper Corp. 3.10 Bn 22.50 5.27 0.64 Bn
5 TGB Taseko Mines Ltd 2.34 Bn -57.89 5.41 0.72 Bn
6 IE Ivanhoe Electric Inc. -2.08 Bn 37.85 -565.48 0.07 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.94 1.43
EV to Cash from Ops. EV/CFO 12.50 34.72
EV to Debt EV to Debt 5.29 2.63
EV to EBIT EV/EBIT 9.74 18.51
EV to EBITDA EV/EBITDA 7.31 27.03
EV to Free Cash Flow [EV/FCF] EV/FCF 19.08 -172.92
EV to Market Cap EV to Market Cap 1.09 1.07
EV to Revenue EV/Rev 3.65 -86.78
Price to Book Value [P/B] P/B 5.55 6.28
Price to Earnings [P/E] P/E 20.03 28.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.55 14.62
Dividend Payout Ratio % Div Payout % (Qtr) 34.30 15.85
Dividend per Basic Share Div per Share (Qtr) 0.60 0.58
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 53.14 20.37
Interest Coverage Int. cover (Qtr) 12.99 4.49
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.06 3.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.73 37.61
Dividend Growth (1y) % Div 1y % (Qtr) 14.29 -4.72
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 17.88 116.37
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.77 18.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 1.33 78.94
EBT Growth (1y) % EBT 1y % (Qtr) 0.29 127.40
EPS Growth (1y) % EPS 1y % (Qtr) 16.79 119.98
FCF Growth (1y) % FCF 1y % (Qtr) -40.48 -64.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.74 14.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.32
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.08
Cash Ratio Cash Ratio (Qtr) 0.67 0.91
Current Ratio Curr Ratio (Qtr) 2.29 1.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.55 0.75
Interest Cover Ratio Int Coverage (Qtr) 12.99 4.49
Times Interest Earned Times Interest Earned (Qtr) 12.99 4.49
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 27.20 -178.60
EBIT Margin % EBIT Margin % (Qtr) 18.50 -204.60
EBT Margin % EBT Margin % (Qtr) 17.08 -228.80
Gross Margin % Gross Margin % (Qtr) 28.20 39.38
Net Profit Margin % Net Margin % (Qtr) 8.50 -236.28