* Note: Prices are in Million (M) USD.
Description:
Freeport-McMoRan Inc., often called Freeport, is an American mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $4,720 M
Debt : $9,251 M
EBITDA : $9,450 M
Net Debt (Debt - Cash): $4,531 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Basic materials
Industry: Copper
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 25.87
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,611 M
Average Revenue: $17,317 M
Revenue Converted To Free Cash Flow (%): 9.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $25,140 M
Revenue 4 Years Ago (2020-12-31): $13,872 M
Last 5 Years Average Revenue Growth: 16%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $1,445 M
Share Count 5 Years Ago (2020-12-31): $1,461 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.94
Trailing 12-Month Earnings Per Share (EPS): $1.53
Average Earnings Per Share (EPS): $1.74
Dividend Per Share (DPS): $1
Payout Ratio: 35%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -2.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $45
52-Week Low: $27
Threshold Price (15% Above 52-Week Low): $32
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $63,748 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Freeport-McMoran Copper & Gold Inc (FCX) stock.
Last 17 Years Avg PE
18.79, Fair Value PE
15, Industry Based PE
12, Growth Based PE
16.25, RCFC Based PE
9.3, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
14.82. Value-Trades has assined P/E value
14.82. An average (Current Year EPS + Next Year EPS) earning per share is
$1.735.
Fair value using multiple P/Es (blended): $25.72 (PE 14.82 × EPS $1.74)
So the Final Fair Value is: $25.72
