FCX Investment Analysis Report & Stock Research, Freeport-McMoran Copper & Gold, Inc.

Freeport-McMoran Copper & Gold, Inc. (FCX)

FCX Stock Report

2-Year Price History

View Larger FCX Chart
NYSE:FCX
$71.80
(2/9 3:25PM)
+3.8%
Open$71.13 Mkt Cap$29.7 Billion
High$72.95 52Wk High$90.55
Low$70.31 52Wk Low$26.32
Volume22.4 Million Avg Vol 10D26.3 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

FCX Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at FCX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.60x and 1.02x respectively.

Utilizing this range we can see that FCX’s current Price to Sales per share ratio of 2.01x is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective FCX does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 10% (the historical average) then we would become more positive on this stock.

FCX Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on FCX from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for FCX, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

FCX Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for FCX, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. FCX’s estimated annual dividend is $0.60 resulting in a current dividend yield of 0.85%. The highest dividend yield from FCX over recent history was 11.53% while the lowest dividend yield was 0.00%. With that range in mind, FCX’s current dividend yield is a full 85.26% below its median dividend yield historically. This is a negative from our perspective.

Peer Comparison

:

Freeport-McMoran Copper & Gold, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including FCX) 21.05 2.75 » 31.63 5.05 0.99 » 7.50 37.27% 37.28%
*10 year range does not include current year values
Gerdau S.A. ADS GGB $37.2 Billion $12.99 31.79 1.32 » 42.19 2.18 0.20 » 4.18 31.73% 30.14%
Freeport-McMoran Copper & Gold, Inc. FCX $29.7 Billion $69.20 -1.00 2.81 » 21.58 2.01 0.33 » 3.88 51.74% 115.11%
Goldcorp, Inc. GG $25.2 Billion $34.41 15.64 4.98 » 43.63 10.17 2.85 » 17.15 55.91% 7.04%
Tenaris SA TS $24.8 Billion $42.00 14.64 3.25 » 15.88 2.62 0.59 » 3.98 30.71% 31.90%
Companhia Siderurgica Nacional ADS SID $23.2 Billion $28.91 12.29 1.08 » 15.89 3.92 0.30 » 4.79 24.53% 71.00%
Southern Copper Corp. PCU $23.2 Billion $27.35 30.88 3.10 » 40.56 6.33 1.02 » 7.39 43.46% 46.32%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Fast Money

Interested in FCX? See What the Pundits Said on Fast Money

The latest news on Fast Money in regards to FCX came through on RazorWire recently.

A significant sell off of $5.16 is underway right now, so investors in FCX should pay close attention to the news. We noticed recently that in comparison to all other stocks we analyze in the news; FCX has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.

“… FREEPORT-MCMORAN, broken. All of these names have been pointing to the s&p going lower. Then if you want clarity, go back to intel's release a couple of weeks ago. …”

Fast Money

Fast Money: What is Happening with Freeport-McMoran Copper & Gold, Inc. Now?

The latest news on Fast Money in regards to FCX came through on RazorWire recently.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, FCX has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Freeport-McMoran Copper & Gold, Inc. at the current price level because according to our methodology it is not supported by the fundamentals. Please be aware that FCX is trading off $4.85 today, and is clearly being affected by the latest news. The Motley Fool CAPS data suggests that investors believe Freeport-McMoran Copper & Gold, Inc. will beat the market in the foreseeable future.

“… You had FREEPORT-MCMORAN, you're out of it? > > when I became unstressed after pilates? Or when I started eating godiva chocolates to make myfeel better? > > it was bad. > ... …”

Power Lunch

Notice a Discussion Covering FCX Appeared Recently in the Financial News

As always, the latest news on FCX is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.

A significant sell off of $4.57 is underway right now, so investors in FCX should pay close attention to the news. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; FCX has received less coverage from the financial media in business television and blogs.

“… FREEPORT MCMORAN, iamgold, gold stocks down. Rio tinto, alcoa, on the down side. Nasdaq, lowest level since november. > > that's right. …”

Power Lunch

Emerging Markets and FCX Covered on Power Lunch

News related to emerging markets affecting Freeport-McMoran Copper & Gold, Inc. today, and Power Lunch discussed some recent developments.

The Motley Fool CAPS data suggests that investors believe Freeport-McMoran Copper & Gold, Inc. will beat the market in the foreseeable future. At Ockham, we are not advising buying Freeport-McMoran Copper & Gold, Inc. at the current price level because according to our methodology it is not supported by the fundamentals. Please be aware that FCX is trading off $4.53 today, and is clearly being affected by the latest news. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, FCX has been less covered in the news compared to the rest of our universe of stocks.

“… I want to take the other side of this argument on FREEPORT-MCMORAN. If you told me to buy on the dips six months ago, we would be exactly where we are today and it's simply not ... …”

Power Lunch

See Why Freeport-McMoran Copper & Gold, Inc. News Was Discussed on Power Lunch

News has broken via the television and viral blogs regarding FCX, so investors should take an interest in learning what was said.

As of this week's report, we have an Overvalued valuation on FCX because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Freeport-McMoran Copper & Gold, Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. Investors are headed for the exit following today's news as the stock is trading down $4.40.

“… You like FREEPORT-MCMORAN? Is that correct at these levels? > > I don't know where we are in the past 20 minutes and we're down below 67 again. …”

WSJ Marketbeat

WSJ Marketbeat: What is Happening with Freeport-McMoran Copper & Gold, Inc. Now?

News has broken via the television and viral blogs regarding FCX, so investors should take an interest in learning what was said.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Freeport-McMoran Copper & Gold, Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on FCX because the price has gotten too high to be justified by the fundamentals.

“… Materials firms on the decline include FREEPORT-MCMORAN, down 4%, Allegheny Technologies, off 5. 5%, AK Steel, down 5. 6%. Mastercard is down 7. …”

Fast Money

Stay Current on FCX's News on Fast Money

News has broken via the television and viral blogs regarding FCX, so investors should take an interest in learning what was said.

Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; FCX has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued.

“… FREEPORT MCMORAN has been broken. The largest stocks that go into the making of automobiles and refrigerators have all been broken. That tells us what's going on with the u. S. …”

Fast Money

Freeport-McMoran Copper & Gold, Inc. News Appeared on Fast Money

As always, the latest news on FCX is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.

The Motley Fool CAPS data suggests that investors believe Freeport-McMoran Copper & Gold, Inc. will beat the market in the foreseeable future. At Ockham, we are not advising buying Freeport-McMoran Copper & Gold, Inc. at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, FCX has been less covered in the news compared to the rest of our universe of stocks.

“… You have a position in the FREEPORT MCMORAN. If you want to play the long side, into the 60s. Pete, you talked about steel dynamics, a name that I love under $16. …”

Power Lunch

FCX Gets Mentioned in the Financial Media

Freeport-McMoran Copper & Gold, Inc. is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Power Lunch.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; FCX has received less coverage from the financial media in business television and blogs.

“… You can see the effect this had on FREEPORT-MCMORAN, a big copper company notably to the weak side. Trader talk. Brian how we looking at the nasdaq. > > …”

Power Lunch

RazorWire has Detected News About FCX on Power Lunch

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Freeport-McMoran Copper & Gold, Inc..

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Freeport-McMoran Copper & Gold, Inc. has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on FCX because the price has gotten too high to be justified by the fundamentals.

“… michael gurhka, when you see a sell-off like this and you see FREEPORT-MCMORAN under pressure because it is getting crushed under $3 a pound today. …”

View All Freeport-McMoran Copper & Gold, Inc. Stock News

Key Fundamentals

FCX - Freeport-McMoran Copper & Gold, Inc. Fundamentals
Price (2/9 3:25PM) $71.80
Volume (2/9 3:25PM) 22.4 Million
Last Close Price $69.20
10 Day Average Volume 26.3 Million
13 Week Price Range $66.03 - $90.55
52 Week Price Range $26.32 - $90.55
LTM Revenue $15.0 Billion
 
Shares Outstanding (12/2009) 429.9 Million
Market Capitalization $29.7 Billion
Shares Held By Institutions 342.7 Million
Institutional Holders 1,075
% Shares Held By Institutions 83.20%
Earnings Per Share (EPS) $5.86
P/E Ratio 11.80
Book Value Per Share $12.41
 
Gross Margin 34.50%
Annual Dividend 0.60
Dividend Yield 0.90%
Beta 1.88
Fiscal Year Ends December

About Freeport-McMoran Copper & Gold, Inc.

Freeport-McMoran Copper & Gold, Inc. is considered to operate in the Basic Materials sector. They specifically operate in the Copper business segment contained within the Metals & Mining industry.

The Company is engaged in the copper, gold and molybdenum mining through its majority-owned subsidiary, PT Freeport Indonesia.