April 24, 2025 a 07:46 am
FCX: Dividend Analysis - Freeport-McMoRan Inc.
Freeport-McMoRan Inc. showcases a resilient dividend profile marked by steady growth in recent years. While the dividend yield is moderate, the company's commitment to consistent payouts over the past 24 years, coupled with cautious financial strategies, positions it favorably for income-focused investors. Despite some historical dividend cuts, the overall track record suggests long-term reliability.
📊 Overview
The overview of Freeport-McMoRan Inc. highlights its sector as a key component in its financial health and dividend profile.
| Attribute | Value |
|---|---|
| Sector | Materials |
| Dividend yield | 1.798 % |
| Current dividend per share | 0.60 USD |
| Dividend history | 24 years |
| Last cut or suspension | None |
🔍 Dividend History
Freeport-McMoRan Inc. has maintained a relatively consistent dividend payout over the years, with some fluctuations. This lengthy history of dividend payouts is an important indicator of a company's stability and commitment to returning value to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.30 |
| 2024 | 0.60 |
| 2023 | 0.60 |
| 2022 | 0.60 |
| 2021 | 0.225 |
📈 Dividend Growth
An analysis of dividend growth reveals how Freeport-McMoRan Inc. manages its returns to shareholders. The growth rates provide insights into how efficiently it is reinvesting earnings to support payout hikes.
| Time | Growth |
|---|---|
| 3 years | 0.39 % |
| 5 years | 0.25 % |
The average dividend growth is 0.25 % over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
The payout ratio indicates how much of the earnings are being paid out as dividends, a crucial metric to assess sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 45.54 % |
| Free cash flow-based | 36.37 % |
The EPS-based payout ratio of 45.54 % indicates a balanced distribution, while the FCF-based ratio of 36.37 % suggests ample cash flow coverage for dividends.
💸 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency reveals the company’s ability to generate cash and reinvest efficiently.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.25 % | 0.75 % | 3.05 % |
| Earnings Yield | 3.41 % | 3.02 % | 6.33 % |
| CAPEX to Operating Cash Flow | 67.15 % | 91.38 % | 67.50 % |
| Stock-based Compensation to Revenue | 0.43 % | 0.48 % | 0.42 % |
| Free Cash Flow / Operating Cash Flow Ratio | 32.85 % | 8.62 % | 32.50 % |
FCX demonstrates robust cash flow generation capabilities, although the high CAPEX may initially raise concerns regarding optimal capital deployment.
📚 Balance Sheet & Leverage Analysis
This analysis focuses on FCX's financial obligations and its capacity to meet them, along with liquidity and overall financial leverage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.51 | 0.59 | 0.68 |
| Debt-to-Assets | 0.16 | 0.19 | 0.21 |
| Debt-to-Capital | 0.34 | 0.37 | 0.41 |
| Net Debt to EBITDA | 0.57 | 0.59 | 0.27 |
| Current Ratio | 2.42 | 2.42 | 2.46 |
| Quick Ratio | 1.18 | 1.38 | 1.64 |
| Financial Leverage | 3.12 | 3.15 | 3.28 |
Freeport-McMoRan presents manageable leverage levels, with a healthy current ratio indicating strong short-term liquidity.
🌟 Fundamental Strength & Profitability
Reviewing core operational metrics offers insights into FCX's profitability and business efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 10.74 % | 11.03 % | 22.30 % |
| Return on Assets | 3.44 % | 3.51 % | 6.79 % |
| Margins: Net | 7.42 % | 8.06 % | 15.22 % |
| Margins: EBIT | 25.88 % | 28.53 % | 31.94 % |
| Margins: EBIT | 34.68 % | 37.58 % | 40.79 % |
| Margins: Gross | 30.09 % | 31.33 % | 33.76 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
While profitability ratios remain strong, the notable absence of research and development expenditure could impact long-term competitiveness.
💰 Price Development
🔧 Dividend Scoring System
| Criteria | Score | Progress |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
🗣️ Rating
Freeport-McMoRan Inc. exhibits a solid overall dividend profile, characterized by robust stability and a commendable growth trajectory. Though the yield is not the highest in its sector, the reliability and financial prudence it reflects make the stock a credible investment for income-focused portfolios. Continued focus on augmenting dividend growth could further elevate its attractiveness.