There has been very little movement in Freeport-McMoRan Inc.'s share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The company is in a robust financial situation considering its net cash and margin position.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company appears highly valued given the size of its balance sheet.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
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Freeport-McMoRan Inc. specializes in the exploration and operation of copper and gold mines located primarily in the United States, Peru, Chile, Indonesia and Congo. Net sales break down by family of products as follows:
- copper (74.6%): refined copper and copper concentrates (4.1 billion ounces sold in 2023);
- gold (14.5%): 1,713,000 ounces sold;
- molybdenum (8.4%): 1.3 billion ounces sold;
- other (2.5%).
Net sales are distributed geographically as follows: the United States (31.8%), Switzerland (17.4%), Japan (15%), Spain (5.5%), Singapore (5.1%), China (4.7%), Indonesia (3.3%), Germany (3.1%), Chile (1.9%), the United Kingdom (0.7%), and other (11.5%).