Home Sectors Basic Materials Valuation Today: Freeport-McMoRan (NYSE: FCX)

Valuation Today: Freeport-McMoRan (NYSE: FCX)


Freeport-McMoRan is in the basic materials sector and is part of the metals and mining industry. The company CEO is Richard C. Adkerson. Freeport-McMoRan Inc is a mining company. It operates large, long-lived geographically diverse assets with reserves of copper, gold, and molybdenum. It also has mining operations in the Americas.

Previous Intraday Trading Performance:

The FCX stock showed a previous change of 2.55% with an open at 13.66 and a close of 13.70. It reached an intraday high of 13.98 and a low of 13.61.

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The stock has a market cap of $19.9b with 1.4b shares outstanding, of which the float is 1.4b shares. Trading volume reached 27,599,841 shares compared to its average volume of 16,237,661 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Freeport-McMoRan shares returned 0.08% and in the past 30 trading days it returned 7.60%. Over three months, it changed 18.85%. In one year it has changed -23.44% and within that year its 52-week high was 19.70 and its 52-week low was 9.60. FCX stock is 42.71% above its 52 Week Low.

Our calculations show a 200 day moving average of 12.99 and a 50 day moving average of 12.63. Currently FCX stock is trading 5.47% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 1.77 that ended on 31st of December 2018, which according to the previous close, that is a PE of 7.74. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.07. The TTM EPS is 1.50, which comes to a TTM PE of 9.13.

The dividend per share is currently 0.20, which is a dividend yield of 1.46%. Also, the payout ratio is 13.33%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 32.85, which means it is possibly undervalued and has a margin of safety of 58.30%

Indicators to Watch:

Based on the latest filings, there is 0.80% of insider ownership and 110.20% of institutional ownership. Short-interest is 30,658,255, which is 2.12% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.98. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.28

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 29.28%, return on assets is 6.54%, profit margin is 15.09%, price-to-sales is 1.41 and price-to-book is 2.03.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 3  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.