Freeport Mcmoran Copper Gold Stock Beneish M Score

FCX Stock  USD 42.67  1.06  2.42%   
This module uses fundamental data of Freeport McMoran to approximate the value of its Beneish M Score. Freeport McMoran M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Freeport McMoran Piotroski F Score and Freeport McMoran Altman Z Score analysis.
  
At this time, Freeport McMoran's Net Debt is fairly stable compared to the past year. Short Term Debt is likely to rise to about 892.5 M in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 6.2 B in 2024. At this time, Freeport McMoran's POCF Ratio is fairly stable compared to the past year. Payout Ratio is likely to rise to 0.47 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
At this time, Freeport McMoran's M Score is unavailable. The earnings manipulation may begin if Freeport McMoran's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Freeport McMoran executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Freeport McMoran's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-0.53
Beneish M Score - Unavailable
Elasticity of Receivables

0.57

Focus
Asset Quality

5.19

Focus
Expense Coverage

0.63

Focus
Gross Margin Strengs

1.4

Focus
Accruals Factor

0.63

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.99

Focus

Freeport McMoran Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Freeport McMoran's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net ReceivablesB1.7 B
Way Down
Very volatile
Total Revenue24 B22.9 B
Sufficiently Up
Slightly volatile
Total Assets55.1 B52.5 B
Sufficiently Up
Slightly volatile
Total Current Assets14.8 B14.1 B
Sufficiently Up
Slightly volatile
Non Current Assets Total40.4 B38.4 B
Sufficiently Up
Slightly volatile
Property Plant Equipment22.3 B39 B
Way Down
Pretty Stable
Depreciation And Amortization1.1 B2.1 B
Way Down
Very volatile
Selling General Administrative315.5 M479 M
Way Down
Very volatile
Total Current Liabilities6.1 B5.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total10.9 B19.4 B
Way Down
Pretty Stable
Short Term Debt892.5 M850 M
Sufficiently Up
Slightly volatile
Long Term Debt8.6 B8.7 B
Slightly Down
Very volatile
Total Cash From Operating Activities2.8 B5.3 B
Way Down
Very volatile
Long Term Investments269.2 M304 M
Fairly Down
Slightly volatile

Freeport McMoran Copper Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Freeport McMoran's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Freeport McMoran in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Freeport McMoran's degree of accounting gimmicks and manipulations.

About Freeport McMoran Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

8.55 Billion

At this time, Freeport McMoran's Other Operating Expenses is fairly stable compared to the past year.

Freeport McMoran Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Freeport McMoran. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables1.2B1.4B1.7B1.8B1.7B1.0B
Total Revenue14.4B14.2B22.8B22.8B22.9B24.0B
Total Assets40.8B42.1B48.0B51.1B52.5B55.1B
Total Current Assets7.8B9.3B14.8B15.6B14.1B14.8B
Net Debt7.8B6.1B1.4B2.5B4.2B4.3B
Short Term Debt5M72M410M1.1B850M892.5M
Long Term Debt9.8B9.7B9.1B9.6B8.7B8.6B
Operating Income536M2.4B8.4B7.0B6.2B6.5B
Investments40M(1.3B)(2.0B)(3.4B)(4.6B)(4.4B)
Gross Profit Margin0.09010.180.390.340.310.43

Freeport McMoran ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Freeport McMoran's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Freeport McMoran's managers, analysts, and investors.
Environmental
Governance
Social

About Freeport McMoran Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Freeport McMoran Copper Gold's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Freeport McMoran using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Freeport McMoran Copper Gold based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Additional Tools for Freeport Stock Analysis

When running Freeport McMoran's price analysis, check to measure Freeport McMoran's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Freeport McMoran is operating at the current time. Most of Freeport McMoran's value examination focuses on studying past and present price action to predict the probability of Freeport McMoran's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Freeport McMoran's price. Additionally, you may evaluate how the addition of Freeport McMoran to your portfolios can decrease your overall portfolio volatility.