Is FCX a high-quality business?

AlphaMadera's AlphaQuality grade scores Freeport-McMoRan Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how FCX compares to a Buffett-style quality bar.

What is Freeport-McMoRan Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to FCX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes FCX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

FCX - Freeport-McMoRan Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $70.88 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Other Commodity Producers

AlphaQuality — archetype-weighted quantitative grade

B 69.5 / 100 composite

Composite Grade

Composite of six pillars weighted for other commodity producers businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 56.6

5yr Avg ROIC 15.3% 81/100
Operating Margin Trend -2.64 pp/yr 0/100

Capital Efficiency

Weight: 10%

B+ 77.1

5yr Avg ROE 14.5% 78/100
5yr Share-Count CAGR -0.7% 75/100

Growth Quality

Weight: 5%

D 38.2

5yr Revenue CAGR 3.6% 49/100
5yr EPS CAGR -14.9% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

B 71.1

5yr FCF Margin 9.6% 68/100
5yr FCF/NI Conversion 0.76x 75/100

Balance Sheet

Weight: 25%

A 88.1

Net Debt / EBITDA 0.85x 86/100
Interest Coverage (EBIT/Int) 17.65x 96/100
Altman Z-Score 3.06 81/100

Stability

Weight: 20%

C+ 58.1

EPS Volatility (σ/μ) 0.48 33/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

3 of 4 gurus held; 2 added; 1 trimmed; 1 full exit.

Holders: 3 -1
Avg Δ position: +48.1%
New buys: 0
Full exits: 1

Dalio sold -100%
Cooperman increased +98%
Wood increased +48%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.