Freeport-McMoRanWBO:FCX -3.38%90 Operating Margin % is 23.07% as of Mar. 2026, which is 7% below its 10-year median of 24.75. GuruFocus rates WBO:FCX with a GF Score™ of 90/100 and a GF Value™ of €40.17 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 841 Metals & Mining companies, Freeport-McMoRan ranks better than 75.03% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Freeport-McMoRan Operating Margin % Related Terms
Freeport-McMoRan Operating Margin % Historical Data
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The historical data trend for Freeport-McMoRan's Operating Margin % 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.
WBO:FCX vs SCCO, IE, COPRD: Operating Margin % Comparison
For the Copper subindustry, Freeport-McMoRan's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Freeport-McMoRan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Freeport-McMoRan's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Freeport-McMoRan's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Freeport-McMoRan (WBO:FCX) has a Operating Margin % of 23.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Freeport-McMoRan and its competitors. This is near median its historical median of 24.75. According to the industry distribution chart, Freeport-McMoRan ranks #210 out of 841 companies in the Metals & Mining industry, placing it in the top 25%.
Is Freeport-McMoRan's Operating Margin % too high?
Freeport-McMoRan's current Operating Margin % of 23.07% is near median its 10-year median of 24.75. The Metals & Mining industry median Operating Margin % is 5.72. Freeport-McMoRan's value of 23.07% is 303.3% above this industry median. Based on the distribution chart, Freeport-McMoRan ranks #210 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Freeport-McMoRan has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Freeport-McMoRan's Operating Margin % compare to SCCO and IE?
According to the Metals & Mining industry distribution chart, Freeport-McMoRan ranks #210 out of 841 companies for Operating Margin %. This places Freeport-McMoRan in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. Freeport-McMoRan's value of 23.07% is 303.3% above this benchmark. While the company's 10-year median is 24.75 vs. the industry median of 5.72, Freeport-McMoRan has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Freeport-McMoRan's current Operating Margin % of 23.07% is 303.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Freeport-McMoRan and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freeport-McMoRan's current Operating Margin % is 23.07%, which is near median its own 10-year median of 24.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freeport-McMoRan stock overvalued right now?
Based on GuruFocus' analysis, Freeport-McMoRan (WBO:FCX) is currently considered Significantly Overvalued. The stock's GF Value™ is €40.17, compared to a current price of €54.59 — trading 35.9% above its estimated fair value. The current Operating Margin % is 23.07%, which is near median its 10-year median of 24.75 and 303.3% above the Metals & Mining industry median of 5.72. Freeport-McMoRan's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Freeport-McMoRan (WBO:FCX), the current Operating Margin % is 23.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Freeport-McMoRan (WBO:FCX) Overvalued in 2026?
Based on GuruFocus' analysis, Freeport-McMoRan stock appears to be overvalued.
The current stock price of €54.59 is trading 35.9% above its estimated GF Value™ of €40.17.
GuruFocus considers Freeport-McMoRan to be Significantly Overvalued.
Key valuation signals for WBO:FCX:
Operating Margin %: 23.07% (near median its 10-year median of 24.75)
GF Value™: €40.17 vs. price of €54.59 (35.9% above fair value)
Industry Position: 303.3% above the Metals & Mining median (#210 of 841)
No single metric tells the full story. See the WBO:FCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 1.1 million metric tons of copper (its share) in 2025, making it the one of the world's largest copper miners by volume. It also sold about 530,000 ounces of gold, mostly from Grasberg, and 74 million pounds of molybdenum. It had about 25 years of copper reserves at the end of December 2025. We expect it to sell about 1.3 million metric tons of copper and 610,000 ounces of gold midcycle in 2030.
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