Latest news with #FCX
Forbes
09-06-2025
- Business
- Forbes
Is Freeport Overvalued At $42?
Freeport-McMoRan (NYSE: FCX), has experienced an increase of approximately 12% over the past month, in contrast to the S&P500 index, which has risen about 5%. What is driving this surge? The prices of copper have been trending upwards, spurred by global economic recovery and rising demand, particularly from industries such as construction and renewable energy. As a prominent copper producer, Freeport-McMoRan is poised to benefit directly from these elevated copper prices. However, there's a catch: Freeport is trading at 33 times earnings and 9 times free cash flow. When you invert that, it results in a meager 3% earnings yield. By way of comparison, Charles Schwab (NYSE:SCHW), a firm in financial services, operates at a lower earnings multiple of 25 times and is experiencing revenue growth that is more than double. Freeport reported a revenue growth of 4.5% over the latest twelve months, whereas SCHW's revenues grew by 10.8%. So indeed, FCX is strategically positioned to capitalize on the growing demand for copper with the rise of artificial intelligence. But at $42 per share, this represents a high valuation pursuing a growth narrative that simply isn't aligned. And when the growth fails to meet expectations? That's when reality sets in. See Buy or Sell Freeport stock? During the 2008 global financial crisis, Freeport shares plummeted nearly 87%! In the initial phases of the Covid pandemic in 2020, they fell by 61%. Furthermore, in 2022, amidst soaring inflation and consumer pressures, Freeport faced another setback with a 52% drop. Historical data reveals that the stock has been more adversely affected than the index. The emergence of artificial intelligence and related technologies has driven up the demand for copper, which is crucial for data centers and electrical components. This trend fosters a positive outlook for copper producers like Freeport-McMoRan. Nevertheless, the broader landscape is less exhilarating. In the first quarter of 2025, Freeport reported a declining net income that fell from $473 million to $352 million year-over-year. Freeport's elevated valuation relies on the anticipation that discussions regarding potential tariffs on copper imports, aimed at enhancing domestic production, if enforced, will be beneficial in the long run. The company recorded net income attributable to common stock of $352 million, or $0.24 per share, a decline from $473 million, or $0.32 per share, in Q1 2024. Revenue for the quarter was $5.73 billion, down from $6.32 billion during the same period last year. Overall copper production decreased by 20% year-over-year to 868 million pounds, primarily due to a significant maintenance project at the Grasberg mine in Indonesia. Freeport has affirmed its full-year 2025 guidance, projecting copper sales of around 4.0 billion pounds, gold sales of 1.6 million ounces (exceeding earlier projections), and molybdenum sales of 88 million pounds. The company anticipates net cash costs to improve to $1.50 per pound, significantly reduced from the $2.07 per pound reported in Q1. Despite a challenging first quarter due to a temporary disruption at its Indonesian smelter, Freeport's copper sales surpassed expectations, benefiting from robust U.S. operations and increased market premiums. The company remains committed to long-term growth, with $5 billion allocated for capital expenditures in 2025 for smelter projects, mine expansions, and sustainability efforts. FCX has potential upside supported by rising copper prices, structural demand growth, operational recovery, and a robust financial position. It represents a leveraged investment in the copper megatrend. Investing in individual stocks comes with inherent risks. However, the Trefis High Quality (HQ) Portfolio, featuring a selection of 30 stocks, has consistently outperformed the S&P 500 over the past 4-year period. What accounts for this? As a collective group, HQ Portfolio stocks provided superior returns with lower risk compared to the benchmark index, resulting in a steadier performance as demonstrated in HQ Portfolio performance metrics.
Arabian Post
04-06-2025
- Business
- Arabian Post
Stars at night are big and bright, deep in the heart of FCX!
Matein Khalid Dr. Copper supposedly boasts a doctorate in economic forecasting because its price predicts inflection points in the global industrial cycle and Freeport-McMoRan (FCX) is the largest listed copper miner on earth, with gold and oil drilling businesses as ancillary SBUs. Dr. Copper is not exactly my fav prognosticator of the economic cycle but I do notice a mini price breakout of the red metal on the LME, where 3-month futures now trade at $9600 a metric ton. A month ago, amid trade wars, tariff and recession angst, I had accumulated FCX at 34 as I believed that the electrification/ decarbonization of the world would make copper the ultimate strategic green metal of the 2020s. The ESG mafia has deeply inhibited new mine output growth at a time when the annual copper deficit could rise to as high as half million metric tons due to AI, EV, automation, energy transition and renewables related surges in copper consumption. Copper production is hostage to labour disputes in Chile, geopolitical trauma (DR Congo), sanctions on Russia, King Leopold, Mobutu, Joseph Conrad and Robert Friedland's heart of darkness, sovereign credit woes in Zambia and water supply problems in the Atacama desert. A New York hedge fund manager who made $2 billion trading copper at a Wall Street I-Bank told me that the clearing price of copper would almost have to double to 18,000 in the next 5 years if the energy transition is to succeed. So I am only too happy to accumulate a strategic position in FCX at 35 and itch for the real time breakout I saw in the charts last night at 40 to add a lot more juice to my bottom line on this trade. ADVERTISEMENT Given past correlations between FCX share price and the price of LME copper, I expect this puppy to easily rise to 45-46 this summer before I cry sayonara on this trade. Freeport-McMoRan is all set to be a Trump darling because it alone can help America reduce its 45% import dependency on foreign refined copper, a critical metal for an advanced $28 trillion industrial economy. After all, FCX provides 70% of the copper used for domestic US refined production. Note that Trump's tariff threats on imported refined copper means the domestic red metal now trades at a 13% premium, a DonnyT windfall not reflected in FCX when it traded at 34 on the NYSE. If US copper commands a 13% price premium over foreign imports for the rest of 2025, FCX bottom line windfall could be as high as $800 million. Everything the Trump White House says and does convinces me that the Big Guy has blessed FCX as the All-American champion in global mining and in Trumpworld, Yankee Doodle Dandy must always win the gold medal. Always! Management projects $15 billion in EBITDA if Dr. Copper trades at $5 a pound on the Chicago Merc next year, which I 100% believe it will. FCX trades at a mere 3.84X EBITDA at its current price of 40 as I write. So this is no time to say tata to my nicely fattening little copper bunny. FCX 46? You bet, cowboy. Why? Coz the stars at night, are big and bright, deep in the heart of Texas! Also published on Medium. Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.
Yahoo
03-06-2025
- Business
- Yahoo
Freeport-McMoRan (FCX) Rises But Trails Market: What Investors Should Know
Freeport-McMoRan (FCX) ended the recent trading session at $40.24, demonstrating a +0.22% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%. Shares of the mining company have appreciated by 7.5% over the course of the past month, outperforming the Basic Materials sector's gain of 3.65% and the S&P 500's gain of 4.61%. The upcoming earnings release of Freeport-McMoRan will be of great interest to investors. On that day, Freeport-McMoRan is projected to report earnings of $0.47 per share, which would represent year-over-year growth of 2.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.93 billion, up 4.69% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $1.67 per share and a revenue of $27.03 billion, demonstrating changes of +12.84% and +6.2%, respectively, from the preceding year. It's also important for investors to be aware of any recent modifications to analyst estimates for Freeport-McMoRan. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.63% higher. At present, Freeport-McMoRan boasts a Zacks Rank of #3 (Hold). Looking at its valuation, Freeport-McMoRan is holding a Forward P/E ratio of 24.11. For comparison, its industry has an average Forward P/E of 22.61, which means Freeport-McMoRan is trading at a premium to the group. It's also important to note that FCX currently trades at a PEG ratio of 0.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Mining - Non Ferrous industry stood at 0.85 at the close of the market yesterday. The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Freeport-McMoRan (FCX) Dips More Than Broader Market: What You Should Know
In the latest market close, Freeport-McMoRan (FCX) reached $38.89, with a -1.89% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq depreciated by 0.51%. Coming into today, shares of the mining company had gained 6.65% in the past month. In that same time, the Basic Materials sector gained 3.81%, while the S&P 500 gained 7.37%. The investment community will be closely monitoring the performance of Freeport-McMoRan in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 2.17% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.93 billion, reflecting a 4.69% rise from the equivalent quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $1.67 per share and a revenue of $26.91 billion, demonstrating changes of +12.84% and +5.71%, respectively, from the preceding year. Any recent changes to analyst estimates for Freeport-McMoRan should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.34% higher. Freeport-McMoRan is currently a Zacks Rank #3 (Hold). In terms of valuation, Freeport-McMoRan is currently trading at a Forward P/E ratio of 23.8. This denotes a premium relative to the industry's average Forward P/E of 21.62. We can additionally observe that FCX currently boasts a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Mining - Non Ferrous stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices. The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Reuters
22-05-2025
- Business
- Reuters
Freeport Indonesia says Manyar smelter resumes operations after fire
JAKARTA, May 22 (Reuters) - Copper miner Freeport Indonesia said its $3.7 billion Manyar smelter in East Java has resumed operations earlier than anticipated after a fire took it offline last year, and is expected to produce copper cathode by the fourth week of June. CEO Tony Wenas said in a statement on Thursday the plant was expected to reach full production capacity by December. A fire damaged the plant last October. Wenas said production had been expected to resume in June, but the repairs were completed ahead of schedule. In March, the Indonesian government gave Freeport Indonesia, a unit of Freeport-McMoRan Inc (FCX.N), opens new tab, a six-month permit to export 1.27 million metric tons of copper concentrate, relaxing a country-wide export ban on unprocessed copper because the company was unable to use the smelter.
