Freeport-McMoRan, Inc.
Find Ratings ReportsFREEPORT-MCMORAN INC's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. FREEPORT-MCMORAN INC has strong liquidity. Currently, the Quick Ratio is 1.51 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 9.42% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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| Income Statement | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Net Sales ($mil) | 4495.0 | 3911.0 |
| EBITDA ($mil) | 1805.0 | 829.0 |
| EBIT ($mil) | 1355.0 | 377.0 |
| Net Income ($mil) | 708.0 | 9.0 |
| Balance Sheet | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 3754.0 | 2120.0 |
| Total Assets ($mil) | 42144.0 | 40809.0 |
| Total Debt ($mil) | 9939.0 | 10074.0 |
| Equity ($mil) | 10174.0 | 9298.0 |
| Profitability | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Gross Profit Margin | 42.45 | 24.14 |
| EBITDA Margin | 40.15 | 21.19 |
| Operating Margin | 30.14 | 9.64 |
| Sales Turnover | 0.34 | 0.36 |
| Return on Assets | 1.42 | -0.58 |
| Return on Equity | 5.89 | -2.6 |
| Debt | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Current Ratio | 2.72 | 2.47 |
| Debt/Capital | 0.49 | 0.52 |
| Interest Expense | 255.0 | 173.0 |
| Interest Coverage | 5.31 | 2.18 |
| Share Data | Q4 FY20 | Q4 FY19 |
|---|---|---|
| Shares outstanding (mil) | 1458.0 | 1451.0 |
| Div / share | 0.0 | 0.05 |
| EPS | 0.48 | 0.0 |
| Book value / share | 6.98 | 6.41 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2.162391E7 | 1.9875632E7 |
BUY. FREEPORT-MCMORAN INC's P/E ratio indicates a significant premium compared to an average of 27.64 for the Mining (except Oil and Gas) subsector and a significant premium compared to the S&P 500 average of 38.99. To use another comparison, its price-to-book ratio of 5.11 indicates a premium versus the S&P 500 average of 4.05 and a significant premium versus the subsector average of 3.47. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, FREEPORT-MCMORAN INC proves to trade at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCX 91.49 | Peers 27.98 | FCX 17.24 | Peers 11.70 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. FCX is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. FCX is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| FCX 13.99 | Peers 11.13 | FCX 0.22 | Peers 0.25 | |||||||||||||||||||||
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Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. FCX is trading at a significant premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. FCX trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| FCX 5.11 | Peers 3.47 | FCX 316.66 | Peers 334.03 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. FCX is trading at a significant premium to its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. FCX is expected to keep pace with its peers on the basis of earnings growth. |
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| Price/Sales |
|
Sales Growth |
|
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| FCX 3.66 | Peers 4.47 | FCX -2.54 | Peers 3.07 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. FCX is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. FCX significantly trails its peers on the basis of sales growth. |
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