📊 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.
Why Buy Freeport-Mcmoran Inc. Stock? FCX Key Strengths
- 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 Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) 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 rating reflects both perspectives for balanced insights.
Is FCX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Freeport-Mcmoran Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. 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.
Should I buy FCX stock in 2026?
Our dual AI analysis gives Freeport-Mcmoran Inc. a combined HOLD rating 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).