Freeport-McMoran Stock Analysis, Valuation (NYSE:FCX)

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$16.36 $0.06 (0.37%) FCX stock closing price Jun 21, 2018 (Closing)

Take a look at Amigobulls Freeport-McMoran stock analysis video. Our analyst opinion covering the buy and sell arguments for FCX stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Freeport-McMoRan Inc Stock Rating 3.9/5

Amigobulls FCX stock analysis takes into account various financial ratios like relative valuation, Freeport-McMoran revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Freeport-McMoran dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Freeport-McMoran valuation analysis. Our Freeport-McMoran stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy FCX stock?

  • The Year Over Year (YoY) revenue growth for Freeport-McMoran was 45.7% in 2018-03.
  • The TTM operating margin was good at 25.16 for Freeport-McMoran.
  • Net margins stood at a healthy 12.7% (average) for Freeport-McMoran in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.9783 times the net income.
  • The Freeport-McMoran stock currently trades at a price to earnings ratio of 11, compared to the sector average of 19.1. We rate this as a positive.
  • Freeport-McMoran's return on invested capital of 12 is good.
  • The LTM ROE of 21.5 for Freeport-McMoran is attractive.
  • The company has a healthy free cash flow margin of 19.9.

Should you sell FCX stock?

  • Revenue declined at a CAGR of -0.1 over the last 5 years.
  • With a debt/equity ratio of 0.97, Freeport-McMoran is highly leveraged in comparison to -sectordesc- peers.

Comments on this video and Freeport-McMoran stock

Amigobulls Freeport-McMoran stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Freeport-McMoran revenue growth and profit or net income are two main metrics which help in identifying whether FCX stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Freeport-McMoran stock.