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

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$13.97 $0.2 (1.45%) FCX stock closing price Aug 17, 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 4.2/5

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 Q2 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?

  • Freeport-McMoran sales grew by 39.3% year on year in 2018-06.
  • Revenue growth has been tremendous with a compounded annual growth of 1.7 over the last 5 years.
  • Freeport-McMoran had a healthy average operating margin of 28.41 over the last 4 quarters.
  • Net margins came in at average 14.9% for Freeport-McMoran over the last twelve months.
  • The company has an operating cash flow which is 1.5063 times the net income. We see this as a positive signal.
  • FCX stock is trading at an earnings multiple of 7.4 which is better than the sector average of 17.6.
  • FCX stock is trading at a favorable price to sales multiple of 1 as against the Basic Materials sector average multiple of 1.3.
  • Freeport-McMoran has an attractive ROIC (Return on Invested Capital) of 14.7
  • Freeport-McMoran has a good Return On Equity (ROE) of 25.6.
  • Freeport-McMoran has a healthy FCF (Free Cash Flow) margin of 17.2.

Should you sell FCX stock?

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.