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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
15.7%
Sector: 3.3%
Dividend Analysis audit
GROWTH
1.54%
Trailing Yield
$1.54
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
28%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FREEPORT-MCMORAN INC (FCX) receives a "Hold" rating with a composite score of 52.8/100, ranked #694 out of 4446 stocks. Key factor scores: Quality 50/100, Value 64/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
FREEPORT-MCMORAN INC (FCX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FREEPORT-MCMORAN INC Do?
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona. FREEPORT-MCMORAN INC (FCX) is classified as a large-cap stock in the Materials sector, specifically within the Non-Metallic And Industrial Metal Mining industry. The company is led by CEO Richard C. Adkerson and employs approximately 25,600 people, headquartered in PHOENIX, Arizona. With a market capitalization of $88.0B, FCX is one of the prominent companies in the Materials sector.
FREEPORT-MCMORAN INC (FCX) Stock Rating — Hold (April 2026)
As of April 2026, FREEPORT-MCMORAN INC receives a Hold rating with a composite score of 52.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FCX ranks #694 out of 4,446 stocks in our coverage universe. Within the Materials sector, FREEPORT-MCMORAN INC ranks #40 of 284 stocks, placing it in the top quartile of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FCX Stock Price and 52-Week Range
FREEPORT-MCMORAN INC (FCX) currently trades at $67.80. The stock gained $1.35 (2.0%) in the most recent trading session. The 52-week high for FCX is $69.75, which means the stock is currently trading -2.8% from its annual peak. The 52-week low is $27.66, putting the stock 145.1% above its annual trough. Recent trading volume was 9.5M shares, reflecting moderate market activity.
Is FCX Overvalued or Undervalued? — Valuation Analysis
FREEPORT-MCMORAN INC (FCX) carries a value factor score of 64/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.11x, compared to the Materials sector average of 26.50x — a discount of 32%. The price-to-book ratio stands at 2.84x, versus the sector average of 2.83x. The price-to-sales ratio is 3.23x, compared to 0.74x for the average Materials stock. On an enterprise value basis, FCX trades at 12.65x EV/EBITDA, versus 6.01x for the sector.
Overall, FCX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
FREEPORT-MCMORAN INC Profitability — ROE, Margins, and Quality Score
FREEPORT-MCMORAN INC (FCX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 15.7%, compared to the Materials sector average of 3.3%, which is within a healthy range. Return on assets (ROA) comes in at 8.3% versus the sector average of 0.6%.
On a margin basis, FREEPORT-MCMORAN INC reports gross margins of 30.7%, compared to 29.8% for the sector. The operating margin is 27.9% (sector: 6.0%). Net profit margin stands at 17.6%, versus 3.0% for the average Materials stock. Revenue growth is running at 5.3% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FCX Debt, Balance Sheet, and Financial Health
FREEPORT-MCMORAN INC has a debt-to-equity ratio of 30.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.29x, indicating strong short-term liquidity. Total debt on the balance sheet is $9.38B. Cash and equivalents stand at $4.32B.
FCX has a beta of 1.72, meaning it is more volatile than the broader market — a $10,000 investment in FCX would be expected to move 72.0% more than the S&P 500 on any given day. The stability factor score for FREEPORT-MCMORAN INC is 45/100, reflecting average volatility within the normal range for its sector.
FREEPORT-MCMORAN INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, FREEPORT-MCMORAN INC reported revenue of $27.07B. Net income for the quarter was $4.82B. Gross margin was 30.7%. Operating income came in at $7.64B.
In FY 2025, FREEPORT-MCMORAN INC reported revenue of $25.91B. Net income for the quarter was $4.15B. Gross margin was 28.2%. Revenue grew 1.8% year-over-year compared to FY 2024. Operating income came in at $6.52B.
In Q3 2025, FREEPORT-MCMORAN INC reported revenue of $6.97B and earnings per share (EPS) of $0.46. Net income for the quarter was $1.25B. Gross margin was 30.7%. Revenue grew 2.7% year-over-year compared to Q3 2024. Operating income came in at $1.97B.
In Q2 2025, FREEPORT-MCMORAN INC reported revenue of $7.58B and earnings per share (EPS) of $0.53. Net income for the quarter was $1.55B. Gross margin was 34.7%. Revenue grew 14.5% year-over-year compared to Q2 2024. Operating income came in at $2.43B.
Over the past 8 quarters, FREEPORT-MCMORAN INC has demonstrated a growth trajectory, with revenue expanding from $6.62B to $27.07B. Investors analyzing FCX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FCX Dividend Yield and Income Analysis
FREEPORT-MCMORAN INC (FCX) currently pays a dividend yield of 1.5%. At this yield, a $10,000 investment in FCX stock would generate approximately $$154.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning FCX offers above-average income for its sector. With a net margin of 17.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FCX Momentum and Technical Analysis Profile
FREEPORT-MCMORAN INC (FCX) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 31/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
FCX vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing FCX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FCX vs S&P 500 (SPY) comparison to assess how FREEPORT-MCMORAN INC stacks up against the broader market across all factor dimensions.
FCX Next Earnings Date
No upcoming earnings date has been announced for FREEPORT-MCMORAN INC (FCX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FCX? — Investment Thesis Summary
FREEPORT-MCMORAN INC presents a balanced picture with arguments on both sides. The value score of 64/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 66/100, suggesting the trend favors buyers.
In summary, FREEPORT-MCMORAN INC (FCX) earns a Hold rating with a composite score of 52.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FCX stock.
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Institutional Research Dossier
FREEPORT-MCMORAN INC (FCX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Freeport-McMoRan Inc. (FCX) currently holds a 'Hold' rating, reflecting a balanced assessment of its strengths and weaknesses. While the company benefits from favorable copper market dynamics and strong profitability metrics, concerns regarding free cash flow generation and inherent cyclicality of the mining industry temper our enthusiasm. The key takeaway is that FCX's performance is heavily reliant on sustained high copper prices, making it a leveraged play on the commodity rather than a fundamentally stable investment.
The company's valuation appears reasonable relative to its sector, but this is largely due to the depressed valuations across the materials sector and the cyclical nature of earnings. While FCX boasts impressive margins and returns on equity compared to its peers, the volatile nature of commodity prices and the capital-intensive nature of mining operations introduce significant risks. Therefore, a 'Hold' rating is warranted, acknowledging the potential upside from continued copper price strength while remaining cautious about downside risks.
Business Strategy & Overview
Freeport-McMoRan operates as a global mining company, primarily focused on copper production, with significant exposure to gold, molybdenum, and silver. The company's revenue is overwhelmingly driven by copper sales, making it highly sensitive to fluctuations in copper prices. FCX's strategic positioning revolves around operating large-scale, long-lived assets in geographically diverse locations, including North America, South America, and Indonesia. The Grasberg minerals district in Indonesia remains a crucial asset, although it has faced operational and political challenges in the past.
The company's business model is capital-intensive, requiring significant investments in exploration, development, and maintenance of its mining operations. FCX aims to optimize production efficiency and reduce costs to enhance profitability. A key aspect of its strategy involves expanding its copper production capacity to capitalize on the anticipated long-term demand for copper, driven by the global transition to renewable energy and electric vehicles. This expansion includes brownfield projects at existing mines and potential greenfield developments.
Freeport-McMoRan's strategic focus also includes responsible mining practices and environmental stewardship. The company is committed to reducing its greenhouse gas emissions and improving water management. These efforts are increasingly important for maintaining its social license to operate and attracting investors who prioritize environmental, social, and governance (ESG) factors.
The company's industry context is characterized by cyclical commodity prices, geopolitical risks, and increasing environmental regulations. FCX competes with other major mining companies, including BHP, Rio Tinto, and Glencore. The competitive landscape is influenced by factors such as ore grades, production costs, and access to infrastructure. FCX's ability to navigate these challenges and execute its strategic initiatives will be critical for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
5.3%
Sector: 1.8%
+200% VS SCTR
Economic Moat Analysis
Freeport-McMoRan's economic moat is best characterized as Narrow. While the company possesses certain advantages, they are not strong enough to create a wide and sustainable competitive edge. The primary source of its moat stems from cost advantages associated with its large-scale, long-lived mining assets. These assets, particularly those with high ore grades and efficient operations, allow FCX to produce copper at a lower cost than some of its competitors.
However, the cost advantage is not insurmountable. Other major mining companies also operate large-scale, low-cost mines, and technological advancements can potentially reduce production costs for all players in the industry. Furthermore, ore grades at existing mines tend to decline over time, which can erode FCX's cost advantage. The Grasberg mine, while a significant asset, has faced operational challenges and higher costs due to its transition to underground mining.
Freeport-McMoRan also benefits from intangible assets in the form of mining rights and permits. These rights provide exclusive access to mineral resources and can be difficult to obtain, creating a barrier to entry for new competitors. However, these rights are subject to regulatory approvals and can be revoked or modified by governments, introducing political and regulatory risks.
The company does not possess significant network effects or high switching costs. Copper is a commodity product, and customers can easily switch between suppliers based on price and availability. Therefore, FCX's competitive advantage is primarily based on its ability to produce copper at a competitive cost, which is subject to fluctuations in ore grades, operating efficiency, and commodity prices. The narrow moat reflects the company's cost advantages and intangible assets, but also acknowledges the limitations and vulnerabilities of its competitive position.
Financial Health & Profitability
Freeport-McMoRan exhibits a mixed financial profile. The company's revenue has shown growth, increasing from $22.86B in FY2023 to $25.91B in FY2025. Net income has also remained relatively strong, with $4.15B in FY2025. Gross margins have been consistently above 28%, and operating margins have exceeded 22% in the recent quarters, indicating strong profitability. Compared to the sector averages, FCX's ROE (15.7%) significantly outperforms the sector average of 2.7%, and its operating margin (27.9%) is substantially higher than the sector average of 6.0%. Similarly, the net margin of 17.6% is much better than the sector's 3.0%.
However, a concerning trend is the negative free cash flow of -$1.43B for the trailing twelve months. This contrasts with the $2.21B in free cash flow generated in FY2024, suggesting a potential deterioration in cash flow generation. The company's debt-to-equity ratio of 30.00 is lower than the sector average of 40.00, indicating a relatively conservative capital structure. The current ratio of 2.29 suggests strong liquidity and the ability to meet short-term obligations.
The quarterly financial history reveals some volatility in revenue and net income. While Q2 FY2025 showed the highest revenue and net income, Q1 FY2025 had the lowest. Gross and operating margins also fluctuated, reflecting changes in copper prices and production costs. The lack of free cash flow data for the quarterly periods makes it difficult to assess the consistency of cash flow generation.
Overall, Freeport-McMoRan's financial health is characterized by strong profitability and a manageable debt level, but the negative free cash flow is a cause for concern. The company's financial performance is highly sensitive to copper prices, and any significant decline in prices could negatively impact its revenue, earnings, and cash flow. The company's ability to generate positive free cash flow consistently will be crucial for its long-term financial stability.
Valuation Assessment
Freeport-McMoRan's valuation presents a mixed picture. The company's P/E ratio of 15.5x is significantly lower than the sector average of 26.1x, suggesting that the stock may be undervalued relative to its earnings. Similarly, the EV/EBITDA multiple of 3.2x is also lower than the sector average of 5.2x, further supporting the notion of undervaluation. However, these multiples should be interpreted with caution, considering the cyclical nature of the mining industry and the volatility of commodity prices.
The low P/E and EV/EBITDA multiples may reflect investor concerns about the sustainability of FCX's earnings, given its dependence on copper prices. If copper prices decline, the company's earnings could fall significantly, leading to a higher P/E ratio. Furthermore, the negative free cash flow raises questions about the company's ability to generate cash to fund its operations and investments.
A more comprehensive valuation approach would involve considering the company's long-term growth prospects, its cost of capital, and the expected future copper prices. A discounted cash flow (DCF) analysis could provide a more accurate estimate of the company's intrinsic value. However, such an analysis would require making assumptions about future copper prices, production volumes, and operating costs, which are subject to considerable uncertainty.
Based on the available data, Freeport-McMoRan's valuation appears reasonable relative to its sector, but it is not necessarily a bargain. The low multiples reflect the cyclicality of the industry and the risks associated with commodity price volatility. Investors should carefully consider these factors before making an investment decision. The 'Hold' rating reflects this balanced view, acknowledging the potential upside from continued copper price strength while remaining cautious about downside risks.
Risk & Uncertainty
Freeport-McMoRan faces several specific risks that could negatively impact its business and financial performance. The most significant risk is commodity price volatility, particularly in copper. A sharp decline in copper prices would directly reduce the company's revenue, earnings, and cash flow. Copper prices are influenced by global economic growth, supply and demand dynamics, and geopolitical events, making them difficult to predict.
Another key risk is operational challenges at its mining operations. These challenges can include lower ore grades, equipment failures, labor disputes, and adverse weather conditions. The Grasberg mine in Indonesia has faced operational challenges in the past, including a transition to underground mining, which has increased costs and reduced production. Any significant disruption to production at its major mines could negatively impact the company's financial results.
Political and regulatory risks are also significant. Freeport-McMoRan operates in several countries with varying political and regulatory environments. Changes in mining regulations, tax policies, or environmental regulations could increase the company's costs or restrict its operations. The company's relationship with the Indonesian government regarding the Grasberg mine has been a source of uncertainty in the past.
Environmental risks are becoming increasingly important. Mining operations can have significant environmental impacts, including water pollution, deforestation, and greenhouse gas emissions. Stricter environmental regulations and increased public scrutiny could require the company to invest more in environmental protection and remediation, increasing its costs. Failure to comply with environmental regulations could result in fines, penalties, and reputational damage.
Bulls Say / Bears Say
The Bull Case
BULL VIEWThe global transition to renewable energy and electric vehicles will drive sustained long-term demand for copper, benefiting Freeport-McMoRan as a major producer.
BULL VIEWFreeport-McMoRan's cost-cutting initiatives and operational improvements will lead to increased profitability and free cash flow generation, justifying a higher valuation.
The Bear Case
BEAR VIEWA global economic slowdown or recession would significantly reduce demand for copper, leading to a sharp decline in copper prices and negatively impacting Freeport-McMoRan's earnings.
BEAR VIEWOperational challenges at the Grasberg mine or other major mines could disrupt production and increase costs, undermining Freeport-McMoRan's financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FCX and 4,400+ other equities.
FREEPORT-MCMORAN INC exhibits a 104% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.3%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
30.7%
Sector: 29.8%
Operating Margin
Core business profitability
27.9%
Sector: 6.0%
Net Margin
Bottom-line profitability
17.6%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.49%
Yield Delta+214%
Income Projection audit
A $10,000 investment would generate approximately $154 annually in dividends at the current trailing rate.
