Freeport-McMoRan, Inc. — Earnings Quality Grade F
FCX · Basic Materials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 14 days, change +5 days YoY
AR growth 69.0% exceeds revenue growth 1.8%
Revenue 1.8%, CFFO -21.6%. Cash follows revenue
Expense Quality
Inventory 10.1% vs COGS 4.6%. Normal
CapEx growth -6.5% vs revenue 1.8%. Normal
SG&A/Gross Profit = 7.5%, excellent (<30%)
Gross margin 28.2%, change -1.9pp. Stable
Cash Flow Quality
CFFO/NI = 2.55. Profits backed by cash
FCF $1.1B, FCF/NI = 0.51
Accruals ratio = -5.9%. Low accruals
Cash $3.8B covers only 36% of debt $10.5B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 2% of equity. Manageable
Debt/EBITDA = 1.2x. Healthy
Other assets 4.1% vs revenue 1.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.04 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10