Freeport-McMoRan (BUE:FCX) Beneish M-Score : -2.80 (As of Dec. 14, 2024)

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What is Freeport-McMoRan Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Freeport-McMoRan's Beneish M-Score or its related term are showing as below:

BUE:FCX' s Beneish M-Score Range Over the Past 10 Years
Min: -8.18 Med: -2.8 Max: -0.09
Current: -2.8

During the past 13 years, the highest Beneish M-Score of Freeport-McMoRan was -0.09. The lowest was -8.18. And the median was -2.80.

Freeport-McMoRan Beneish M-Score Historical Data

The historical data trend for Freeport-McMoRan's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Freeport-McMoRan Beneish M-Score Chart

Freeport-McMoRan Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.68

-2.90

-2.80

-2.58

-2.79

Freeport-McMoRan Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.65	-2.79	-2.62	-2.59	-2.80

Competitive Comparison of Freeport-McMoRan's Beneish M-Score

For the Copper subindustry, Freeport-McMoRan's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Freeport-McMoRan's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Freeport-McMoRan's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Freeport-McMoRan's Beneish M-Score falls into.

Freeport-McMoRan Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Freeport-McMoRan for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9019

0.528 * 0.9555

0.404 * 0.9535

0.892 * 3.6443

0.115 * 0.8308

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.948

4.679 * -0.081935

0.327 * 0.993

-0.65

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ARS1,472,324 Mil.
Revenue was 6453894.716 + 5931791.915 + 5325442.591 + 2131705.002 = ARS19,842,834 Mil.
Gross Profit was 2008406.412 + 2005919.971 + 1585585.027 + 706116.001 = ARS6,306,027 Mil.
Total Current Assets was ARS13,825,022 Mil.
Total Assets was ARS52,657,698 Mil.
Property, Plant and Equipment(Net PPE) was ARS35,881,373 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,740,026 Mil.
Selling, General, & Admin. Expense(SGA) was ARS385,995 Mil.
Total Current Liabilities was ARS5,937,773 Mil.
Long-Term Debt & Capital Lease Obligation was ARS8,468,955 Mil.
Net Income was 499962.978 + 551627.992 + 398502.507 + 140068 = ARS1,590,161 Mil.
Non Operating Income was 92198.496 + 61789.499 + 108682.502 + 37183 = ARS299,853 Mil.
Cash Flow from Operations was 1779335.922 + 1751597.975 + 1597380.027 + 476520 = ARS5,604,834 Mil.

Total Receivables was ARS447,936 Mil.
Revenue was 2038108.856 + 1376879.989 + 1064596.975 + 965328.673 = ARS5,444,914 Mil.
Gross Profit was 608213.117 + 393839.997 + 360528.758 + 290872.742 = ARS1,653,455 Mil.
Total Current Assets was ARS4,926,246 Mil.
Total Assets was ARS18,074,218 Mil.
Property, Plant and Equipment(Net PPE) was ARS12,085,524 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS482,966 Mil.
Selling, General, & Admin. Expense(SGA) was ARS111,724 Mil.
Total Current Liabilities was ARS1,700,757 Mil.
Long-Term Debt & Capital Lease Obligation was ARS3,279,032 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1472324.435 / 19842834.224)	/	(447936.012 / 5444914.493)
	=	0.074199	/	0.082267
	=	0.9019

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1653454.614 / 5444914.493)	/	(6306027.411 / 19842834.224)
	=	0.30367	/	0.317799
	=	0.9555

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (13825021.892 + 35881373.423) / 52657697.686)	/	(1 - (4926246.286 + 12085523.583) / 18074218.098)
	=	0.056047	/	0.058783
	=	0.9535

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	19842834.224	/	5444914.493
	=	3.6443

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(482965.554 / (482965.554 + 12085523.583))	/	(1740025.977 / (1740025.977 + 35881373.423))
	=	0.038427	/	0.046251
	=	0.8308

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(385994.995 / 19842834.224)	/	(111723.952 / 5444914.493)
	=	0.019453	/	0.020519
	=	0.948

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((8468954.628 + 5937773.239) / 52657697.686)	/	((3279031.59 + 1700757.047) / 18074218.098)
	=	0.273592	/	0.275519
	=	0.993

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(1590161.477 - 299853.497	-	5604833.924)	/	52657697.686
	=	-0.081935

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Freeport-McMoRan has a M-score of -0.65 signals that the company is likely to be a manipulator.

Freeport-McMoRan Beneish M-Score Related Terms

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Freeport-McMoRan Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Freeport-McMoRan Inc (BUE:FCX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

FCX:USA FCX:Peru FCX:Mexico 1FCX:Italy FPMBd:UK 0R2O:UK FPMB:Germany FPMB:Germany FPMB:Germany FCX:Chile FCXO34:Brazil FCX:Austria

Address

333 North Central Avenue, Phoenix, AZ, USA, 85004-2189

Website

https://www.fcx.com

Freeport-McMoRan owns stakes in 10 copper mines, led by its 49% ownership of the Grasberg copper and gold operations in Indonesia, 55% of the Cerro Verde mine in Peru, and 72% of Morenci in Arizona. It sold around 1.2 million metric tons of copper (its share) in 2023, making it the one of the world's largest copper miners by volume. It also sold about 900,000 ounces of gold, mostly from Grasberg, and 70 million pounds of molybdenum. About 75% of 2023 revenue was from copper, with a further 15% from gold and about 10% from molybdenum. It had about 25 years of copper reserves at end December 2023. we expect it to sell similar amounts of copper midcycle in 2028, though we expect gold volumes to decline to about 700,000 ounces then due to falling production at Grasberg.