Freeport McMoRan Current Valuation vs. Net Income
| 0R2O Stock | 38.98 1.05 2.77% |
For Freeport McMoRan profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Freeport McMoRan to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Freeport McMoRan utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Freeport McMoRan's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Freeport McMoRan over time as well as its relative position and ranking within its peers.
Freeport |
Freeport McMoRan Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Freeport McMoRan's current stock value. Our valuation model uses many indicators to compare Freeport McMoRan value to that of its competitors to determine the firm's financial worth. Freeport McMoRan is the top company in current valuation category among its peers. It also is number one stock in net income category among its peers making up about 0.03 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Freeport McMoRan is roughly 39.12 . At this time, Freeport McMoRan's Net Income is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Freeport McMoRan's earnings, one of the primary drivers of an investment's value.Freeport Current Valuation vs. Competition
Freeport McMoRan is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 84.57 Billion. Freeport McMoRan totals roughly 72.29 Billion in current valuation claiming about 85% of equities under Industrials industry.
Freeport Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Freeport McMoRan |
| = | 72.29 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Freeport McMoRan |
| = | 1.85 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Freeport Net Income Comparison
Freeport McMoRan is currently under evaluation in net income category among its peers.
Freeport McMoRan Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Freeport McMoRan, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Freeport McMoRan will eventually generate negative long term returns. The profitability progress is the general direction of Freeport McMoRan's change in net profit over the period of time. It can combine multiple indicators of Freeport McMoRan, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -274 M | -287.7 M | |
| Operating Income | 6.2 B | 6.5 B | |
| Income Before Tax | 6 B | 6.3 B | |
| Total Other Income Expense Net | -219 M | -229.9 M | |
| Net Income | 1.8 B | 1.9 B | |
| Income Tax Expense | 2.3 B | 2.4 B | |
| Interest Income | 538.2 M | 595 M | |
| Net Income Applicable To Common Shares | 4 B | 4.2 B | |
| Change To Netincome | 1.1 B | 1.1 B |
Freeport Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Freeport McMoRan. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Freeport McMoRan position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Freeport McMoRan's important profitability drivers and their relationship over time.
Use Freeport McMoRan in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Freeport McMoRan position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Freeport McMoRan will appreciate offsetting losses from the drop in the long position's value.Freeport McMoRan Pair Trading
Freeport McMoRan Pair Trading Analysis
The ability to find closely correlated positions to Freeport McMoRan could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Freeport McMoRan when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Freeport McMoRan - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Freeport McMoRan to buy it.
The correlation of Freeport McMoRan is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Freeport McMoRan moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Freeport McMoRan moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Freeport McMoRan can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Freeport McMoRan position
In addition to having Freeport McMoRan in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.