FCXFCX
US • —
$62.54
P/E
33.03
PEG
0.60
FCF Yield
—
Rev Growth YoY
-24.2% YoY
Gross Margin
25.6%
Health Score
5/10
D/E Ratio
0.50
Confidence
MEDIUM
Business Snapshot
Freeport-McMoRan (FCX) is one of the world's largest publicly traded copper producers, with primary operations in the Americas and Indonesia. It operates a highly integrated business spanning mining, milling, smelting, and refining of copper, as well as significant molybdenum production. The company occupies a dominant position in a cyclical industry, where its fortunes are closely tied to the global economic cycle and copper demand from electrification, infrastructure, and construction. FCX is a large industrial enterprise, but the provided data is incomplete regarding its exact market cap tier and total revenue. A defining characteristic is the company's high sensitivity to copper prices, which drives both its revenue and earnings volatility.
Financial Health
Gross margin stands at 25.6%, and net margin is 10.4%, but with no prior-year margin data, the trend direction cannot be assessed. The balance sheet appears healthy with a debt-to-equity ratio of 0.5x, indicating moderate leverage, and a current ratio of 2.29x, suggesting strong short-term liquidity...
Risk Assessment
- VALUATION — P/E ratio of 33.03x is elevated versus the sector average of 22x, implying a 50% premium that requires sustained high earnings growth to justify.
- REVENUE DECELERATION — Revenue declined 24.2% year-over-year, a sharp reversal that signals significant top-line pressure.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is not available in the data, preventing an assessment of the company's ability to self-fund operations and dividends.
- EARNINGS QUALITY — Revenue is declining 24.2% while earnings grew 54.7%, a wide divergence that raises questions about the quality and sustainability of earnings growth.
- VALUATION DIVERGENCE — Both the FMP and Python DCF fair values were not calculable, leaving no fundamental anchor for valuation beyond high multiples....
Gross margin stands at 25.6%, and net margin is 10.4%, but with no prior-year margin data, the trend direction cannot be assessed. The balance sheet appears healthy with a debt-to-equity ratio of 0.5x, indicating moderate leverage, and a current ratio of 2.29x, suggesting strong short-term liquidity. Return on equity is a solid 14.5%, reflecting efficient capital use. However, free cash flow is not available in the data, making it impossible to assess cash generation or cash burn, which is a critical gap in evaluating financial health. Overall, the company has a manageable debt profile and solid liquidity, but the lack of cash flow transparency is a significant concern for assessing dividend or reinvestment capacity.
- VALUATION — P/E ratio of 33.03x is elevated versus the sector average of 22x, implying a 50% premium that requires sustained high earnings growth to justify. - REVENUE DECELERATION — Revenue declined 24.2% year-over-year, a sharp reversal that signals significant top-line pressure. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is not available in the data, preventing an assessment of the company's ability to self-fund operations and dividends. - EARNINGS QUALITY — Revenue is declining 24.2% while earnings grew 54.7%, a wide divergence that raises questions about the quality and sustainability of earnings growth. - VALUATION DIVERGENCE — Both the FMP and Python DCF fair values were not calculable, leaving no fundamental anchor for valuation beyond high multiples.
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