📊 FCX Key Takeaways
Is Freeport-Mcmoran Inc. (FCX) a Good Investment?
Freeport-McMoran maintains a fortress balance sheet with exceptional liquidity and low leverage, generating solid operating margins of 34.3% and positive free cash flow. However, net income declined 46.9% year-over-year despite modest revenue growth, signaling significant margin compression likely driven by commodity price exposure and high below-the-line costs, resulting in weak returns on capital (ROE 4.5%, ROA 1.5%).
FREEPORT-MCMORAN shows solid core operating strength, with a strong 25.2% operating margin, healthy liquidity, and conservative leverage supported by exceptional interest coverage. However, the sharp 46.9% decline in net income and relatively thin free cash flow after heavy capital spending suggest that earnings quality is being pressured despite stable top-line growth. Fundamentally, this looks like a financially sound but cyclical business that needs better conversion of operating profits into durable bottom-line and free cash flow growth.
Freeport-Mcmoran Inc. Key Strengths (FCX)
- Fortress balance sheet with debt/equity ratio of 0.48x and $3.7B cash position
- Exceptional liquidity (current ratio 2.39x, quick ratio 2.10x) and interest coverage (33.9x)
- Strong operating margins of 34.3% demonstrating operational efficiency
- Positive free cash flow generation of $522M with 8.4% FCF margin
- Strong operating profitability with a 25.2% operating margin
- Healthy balance sheet with 2.29x current ratio and 0.50x debt-to-equity
- Very high interest coverage of 103.5x indicates low near-term financial stress
FCX Stock Risks: Freeport-Mcmoran Inc. Investment Risks
- Sharp net income decline of 46.9% year-over-year despite only 2.9% revenue growth indicates severe margin compression
- Weak returns on capital (ROE 4.5%, ROA 1.5%) suggest inefficient capital deployment in cyclical mining environment
- Commodity price exposure creates earnings volatility; significant gap between operating and net income suggests material financial charges
- High capital expenditure requirements ($973M annually) limit free cash flow conversion and flexibility
- Net income fell 46.9% year over year, indicating earnings volatility
- Free cash flow is modest at $1.12B versus $5.61B operating cash flow due to heavy capex
- Low ROA of 3.8% suggests the asset base is not generating especially strong returns
Key Metrics to Watch
- Net income trend and reconciliation to operating income deterioration
- Operating margin sustainability amid commodity price dynamics
- Free cash flow conversion and capital allocation efficiency
- Debt levels and leverage ratios under commodity cycle stress
- Free cash flow and capex intensity
- Net income margin and return on assets
Freeport-Mcmoran Inc. (FCX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.39x current ratio provides a solid financial cushion.
FCX Profit Margin, ROE & Profitability Analysis
FCX vs Materials Sector: How Freeport-Mcmoran Inc. Compares
How Freeport-Mcmoran Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Freeport-Mcmoran Inc. Stock Overvalued? FCX Valuation Analysis 2026
Based on fundamental analysis, Freeport-Mcmoran Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Freeport-Mcmoran Inc. Balance Sheet: FCX Debt, Cash & Liquidity
FCX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Freeport-Mcmoran Inc.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.17 indicates the company is currently unprofitable.
FCX Revenue Growth, EPS Growth & YoY Performance
FCX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.6B | $793.0M | $0.24 |
| Q3 2025 | $6.7B | $1.2B | $0.36 |
| Q2 2025 | $6.4B | $1.3B | $0.42 |
| Q1 2025 | $5.6B | $793.0M | $0.24 |
| Q3 2024 | $5.9B | $964.0M | $0.31 |
| Q2 2024 | $5.9B | $731.0M | $0.23 |
| Q1 2024 | $5.1B | $1.0B | $0.32 |
| Q3 2023 | $5.3B | $560.0M | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Freeport-Mcmoran Inc. Dividends, Buybacks & Capital Allocation
FCX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Freeport-Mcmoran Inc. (CIK: 0000831259)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FCX
What is the AI rating for FCX?
Freeport-Mcmoran Inc. (FCX) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FCX's key strengths?
Claude: Fortress balance sheet with debt/equity ratio of 0.48x and $3.7B cash position. Exceptional liquidity (current ratio 2.39x, quick ratio 2.10x) and interest coverage (33.9x). ChatGPT: Strong operating profitability with a 25.2% operating margin. Healthy balance sheet with 2.29x current ratio and 0.50x debt-to-equity.
What are the risks of investing in FCX?
Claude: Sharp net income decline of 46.9% year-over-year despite only 2.9% revenue growth indicates severe margin compression. Weak returns on capital (ROE 4.5%, ROA 1.5%) suggest inefficient capital deployment in cyclical mining environment. ChatGPT: Net income fell 46.9% year over year, indicating earnings volatility. Free cash flow is modest at $1.12B versus $5.61B operating cash flow due to heavy capex.
What is FCX's revenue and growth?
Freeport-Mcmoran Inc. reported revenue of $6.2B.
Does FCX pay dividends?
Freeport-Mcmoran Inc. pays dividends, with $218.0M distributed to shareholders in the trailing twelve months.
Where can I find FCX SEC filings?
Official SEC filings for Freeport-Mcmoran Inc. (CIK: 0000831259) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FCX's EPS?
Freeport-Mcmoran Inc. has a diluted EPS of $0.61.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FCX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Freeport-Mcmoran Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FCX stock overvalued or undervalued?
Valuation metrics for FCX: ROE of 4.5% (sector avg: 14%), net margin of 14.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is FCX's AI grade for 2026?
Our dual AI analysis gives Freeport-Mcmoran Inc. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FCX's free cash flow?
Freeport-Mcmoran Inc.'s operating cash flow is $1.5B, with capital expenditures of $973.0M. FCF margin is 8.4%.
How does FCX compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.1% (avg: 10%), ROE 4.5% (avg: 14%), current ratio 2.39 (avg: 1.6).