Is Freeport-McMoRan Inc. (FCX) Stock Cheap Or Risky?


As of Wednesday close, Freeport-McMoRan Inc.’s (NYSE:FCX) stock was up $0.18, moving up 0.48 percent to $38.04. The average number of shares traded per day over the past five days has been 10,732,620 shares. 4 times new highs have been achieved over the past 5 days, with a $0.66 gain in that time frame. In the last twenty days, the average volume was 15,334,540, while in the previous 50 days, it was 16,425,188.

Since last month, FCX stock rose 20.11%. Shares of the company fell to $30.27 on 11/03/22, the lowest level in the past month. A 52-week high of $51.63 was reached on 03/25/22 after having rallying from a 52-week low of $24.74. Since the beginning of this year, FCX’s stock price has dropped by -8.05% or -$3.69, and marked a new high 13 times. However, the stock has declined by -26.32% since its 52-week high.

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FCX stock investors should be aware that Freeport-McMoRan Inc. (FCX) stock had its last reported insider trading activity 88 days ago on Aug 29. Lance Ryan Michael, the Director of the company, purchased of 31,000 shares for $31.88 on Aug 29. It resulted in a $988,314 investment by the insider. Lewis Sara Grootwassink added 3,000 shares at an average price of $28.79 on Aug 03. The insider now owns 13,800 shares following the transaction. On May 31, Director MCCOY DUSTAN E sold 8,200 shares at $39.24 apiece. The transaction was valued at $321,796.

Valuation Metrics

Right now, Freeport-McMoRan Inc. (FCX) has a P/E ratio of about 14.41. The stock’s beta is 1.96. Besides these, the trailing price-to-sales (P/S) ratio of 2.35, the price-to-book (PB) ratio of 3.64, and the price-to-cash flow ratio of 9.77 may also be considered.

The latest dividend of $0.15 per share was paid out, remained unchanged from last year’s $0.15. On Wednesday December 22 2021, a $0.0750 dividend increase was announced.

Financial Health

In the three months ended September 29, Freeport-McMoRan Inc.’s quick ratio stood at 1.80, while its current ratio was 2.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.65, and the total debt-to-equity ratio was 0.71. On the profitability front, the trailing twelve-month gross margin is 36.20% percent. In the year ended September 29, operating margins totaled 33.80%. Based on annual data, FCX earned $8.81 billion in gross profit and brought in $22.84 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 25.90%. Return on equity (ROE) for the past 12 months was 26.30%.

In Freeport-McMoRan Inc.’s quarter-end financial report for September 29, it reported total debt of $9.66 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. FCX’s revenue fell -21.59% to $5.42 billion during the quarter, while net income inched up to $5.0 billion. While analysts expected Freeport-McMoRan Inc. to report $0.24 quarterly earnings, the actual figure was $0.26 per share, beating the consensus estimate by 8.30%. During the quarter, the company generated $1.47 billion in EBITDA. The liabilities of Freeport-McMoRan Inc. were 25.75 billion at the end of its most recent quarter ended September 29, and its total debt was $10.69 billion. The value of shareholders’ equity is $1.43 billion.

Technical Picture

This quick technical analysis looks at Freeport-McMoRan Inc.’s (FCX) price momentum. With a historical volatility rate of 35.22%, the RSI 9-day stood at 66.12% on 23 November.

With respect to its five-day moving average, the current Freeport-McMoRan Inc. price is up by +1.77% percent or $0.66. At present, FCX shares trade +14.10% above its 20-day simple moving average and +39.55% percent above its 100-day simple moving average. However, the stock is currently trading approximately +26.67% above its SMA50 and -6.37% below its SMA200.

Stochastic coefficient K was 75.98% and Stochastic coefficient D was 71.74%, while ATR was 1.59. Given the Stochastic reading of 78.26% for the 14-day period, the RSI (14) reading has been calculated as 64.28%.

Analyst Ratings

Freeport-McMoRan Inc. downgraded its rating on Freeport-McMoRan Inc. (NYSE: FCX) to a Sector perform in a note to investors on November 11, 2022. The analysts firm previously had a Sector outperform rating on the stock.Freeport-McMoRan Inc. (FCX) has been rated Overweight by analysts. According to 1 brokerage firm, FCX is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Freeport-McMoRan Inc. stock as buy, with 9 recommending it as overweight.

With a median target price of $34.50, the current consensus forecast for the stock is $23.00 – $55.00. Based on these forecasts, analysts predict Freeport-McMoRan Inc. (FCX) will achieve an average price target of $36.40.


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