$43.72
arrow_drop_down0.11%Is FCX a Buy or Sell based on AI Analysis?
Fundamental Analysis
Freeport-McMoRan Inc (FCX) has a market cap of $54.97 billion, indicating the company's size and value in the market. The company's revenue of $22.71 billion and gross profit of $6.88 billion showcase its strong financial performance. Additionally, the company's net income of $1.84 billion and EBITDA of $8.58 billion highlight its ability to generate profits and cash flow. With a P/E ratio of 29.94 and a dividend yield of 1.58%, investors can assess FCX's valuation and potential for income generation. Furthermore, the company's return on equity of 14.38% signifies its ability to generate returns for shareholders based on their investment in the company. In terms of financial health, Freeport-McMoRan Inc has a current ratio of 2.42, indicating its ability to meet short-term obligations with its current assets. The company's debt-to-equity ratio of 0.36 showcases a conservative leverage position, reducing financial risk for investors. Moreover, FCX's operating margin of 28.47% and net margin of 8.14% reflect its operational efficiency and profitability. Lastly, the company's free cash flow margin of 2% and free cash flow of $455 million demonstrate its ability to generate cash after accounting for capital expenditures, highlighting its financial strength and ability to reinvest in growth opportunities.
Positive Development
FCX has been observed as one of the stocks most watched by Zacks.com users, indicating the company is attracting significant investor attention. FCX's stock has shown resilience in the face of overall market volatility, outperforming competitors despite losses on some days. FCX's stock has been inching upwards, showing a slight upward trend.
Negative Development
Despite outperforming competitors, FCX's stock has underperformed on certain days, indicating potential volatility in the company's stock price. FCX's stock has been experiencing a slight downward trend over the past few weeks, with a decrease from 38.14 to 38.03 from 2024-02-20 to 2024-02-26. FCX's financial performance has been observed to be weak, with a negative net margin and a high debt-to-equity ratio.
Technical Analysis
Freeport-McMoRan Inc (FCX) has a neutral technical rating, indicating a balanced outlook for the stock. The company's stock price has shown a slight decrease of 0.1% over the past seven days and a one-month price change of -0.92%. However, the three-month price change percent is positive at 1.89%, demonstrating some level of momentum in the stock. Additionally, the stock has a beta of 2.06, indicating that it is more volatile compared to the overall market. In terms of technical indicators, Freeport-McMoRan Inc has one buy indicator for the month, which is the Average True Range (ATR). There are also seven hold indicators, including Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Commodity Channel Index (CCI). This mix of buy and hold indicators suggests a cautious approach towards this stock, with investors advised to closely monitor the stock's performance before making any investment decisions.
Conclusion and recommendation
Based on the data provided, Freeport-McMoRan Inc (FCX) appears to be a stable and promising investment option. The company has a market cap of $54.97B and a strong financial position with assets totaling $52.51B and liabilities at $25.2B. With a current price of $38.32 and a trailing PE ratio of 29.63, FCX seems to have good growth potential. Additionally, the company has a dividend yield of 1.58% and a strong return on equity at 14.38%, indicating a well-performing business model. Furthermore, FCX has shown consistent revenue and earnings growth over the years, with a five-year price change of 199.84%. While there may be short-term fluctuations in the stock price, the company's strong fundamentals and positive industry scores suggest a favorable outlook for long-term investors. In conclusion, Freeport-McMoRan Inc presents as a solid investment opportunity with a robust financial position, steady growth trajectory, and promising industry outlook. Investors looking for a reliable stock with growth potential may consider adding FCX to their portfolio.