Freeport-McMoRan Inc. (FCX)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn high returns through cycles and are bought at a discount to conservative value. Freeport is a large copper miner with Grasberg and Americas assets, but the provided Lynch category is cyclical—copper because earnings follow the economic cycle. The filings show fiscal Q2 2026, quarter ended 2026-06-30, revenue of $6.9B, net income of $984.0M and diluted EPS of $0.68; that compares with fiscal Q2 2025 revenue of $7.5B, net income of $772.0M and EPS of $0.53. So revenue fell while profit improved. FY2025 revenue was $25.2B and net income $4.2B, essentially flat revenue but lower profit than FY2024's $4.4B on $25.2B. The balance sheet is not stretched with debt/equity of 0.32, and Piotroski 8/9 and Altman 2.48 suggest reasonable financial health, though ROCE of 7.58% is modest and FCF yield is only 1.9% on $1.8B trailing free cash flow. At the 2026-10-26 close of $65.16, FairStock calculations show P/E 31.94, P/B 4.65, EV/EBITDA 10.82, PEG 1.16, Graham Number $25.35 and margin of safety -157.12%; FairStock Score 43/100. That is not a Graham bargain. The dividend yield is only 0.84%, and beta 1.40 signals cyclicality. I respect the asset base and profit recovery, but I would want copper prices to justify the price and a much larger cushion before calling it cheap.

In plain English: Freeport-McMoRan mines copper and other metals in the Americas and Indonesia. The business earns money, but its results swing with copper prices and the economy; recent filings show sales fell while profit rose. At the 2026-10-26 close of $65.16, the shares look expensive versus the profits, cash generation and conservative value measures shown here.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer