Freeport-McMoRan Inc. (FCX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Freeport-McMoRan Inc.

Updated on October 31, 2026 · accounts published on October 27, 2026

A profitable materials business with widening margins and modest debt

Freeport-McMoRan trades at a P/E of 26.2× over the last 12 months, 40 % above its sector median of 18.8×, while EPS grew 17 %.

• Is Freeport-McMoRan expensive or cheap? Freeport-McMoRan trades at a P/E of 26.2× over the last 12 months, 40 % above the 18.8× median of its sector.
• How is the business doing? Operating margin over the last 12 months is 27.6 %, well above the 19.9 % average of fiscal 2014-2025.
• How strong is the balance sheet? Net debt was $5.42 per share in fiscal 2025, equal to 8.7 % of the current price and 0.9× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $1.03 in the quarter due January 28, 2027, after lifting 2026 estimates 7 % in 30 days.
• Can the balance sheet hold up at the bottom of the cycle? Free cash flow yield over the last 12 months is 4.5 %, short of the 8 % considered healthy in basic materials.

Is Freeport-McMoRan expensive or cheap?

Every valuation measure in the data points the same way. The P/E of 26.2× over the last 12 months is 40 % above the median of 156 sector peers, and the earnings yield is only 1.8 %. EV/EBITDA of 10.4× is about 24 % above its seven-year average of 8.4×, past the 110 % line that marks a commodity producer as expensive across the cycle. Price to book of 4.3× is more than double the 2.0× considered reasonable in basic materials. The stock has gained 50 % over the last 12 months and still sits 22 % below its 52-week high of $79.91.

How is the business doing?

Profits are growing much faster than sales. Revenue rose just 1.1 % over the last 12 months while EPS climbed 17 %, driven by an operating margin of 27.6 %. That is up from 24.4 % in fiscal 2025 and far above the 19.9 % average of the twelve fiscal years 2014-2025. Returns on capital are the weaker side: ROIC of 9.4 % over the last 12 months is only 0.2 points above the sector median of 9.2 %. It cleared 10 % in just 2 of the last 10 fiscal years and fell to −1.1 % in 2019. Strong margins today have not yet produced consistently high returns.

How strong is the balance sheet?

Leverage is modest. Debt to equity is 0.49 over the last 12 months and the current ratio is 2.02, so short-term assets cover short-term obligations twice over. Net debt of 0.9× EBITDA in fiscal 2025 sits well under the 3.0× ceiling considered healthy in basic materials, though it is measured on current earnings, not a cycle trough. The dividend yields 1.0 % over the last 12 months, with a payout of 39 % of fiscal 2025 profit. Free cash flow covered it 1.3× in fiscal 2025, exactly at the healthy threshold, which leaves little margin if cash generation weakens.

What to expect from the next earnings?

Expectations are moving up. The consensus for 2026 EPS rose 6.6 % over the last 30 days, from $2.97 to $3.16 across 10 analysts, and the 2026 revenue estimate rose 1.5 %. The track record supports that drift: Freeport-McMoRan beat EPS estimates in 7 of the last 8 quarters, most recently on October 27, 2026, with $0.88 against $0.81 expected, an 8 % surprise. Of the 41 analysts covering the company, 25 recommend buying, 14 holding and 2 selling. The $1.03 forecast for the next quarter is above the last reported figure, so the bar keeps rising.

Can the balance sheet hold up at the bottom of the cycle?

Basic materials companies are tied entirely to commodity prices, so a P/E measured in good years says little. Cost position, cash generation and how durable the dividend is matter more. Here the picture is mixed. Net debt at 0.9× EBITDA passes easily, and the Altman Z of 2.6 over the last 12 months sits in the grey zone between 1.81 and 2.99: above the danger line, below the safe one. Gross margin of 27 % in fiscal 2025 falls short of the 30 % healthy mark, and capex ran at 2.0× depreciation, above the 0.8× to 1.5× range. That spending absorbs cash that could otherwise cushion a downturn.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.