The forward P/E of 24.4x implies the market expects a significant earnings recovery from current levels, likely driven by the Grasberg ramp-up and higher copper prices. However, the PEG of 1.56 suggests that growth expectations are not excessive relative to the implied earnings growth. The EV/EBITDA multiple of 12.96x is at a premium to peers like TECK (13.48x) and HBM (12.99x), but below SCCO's 21.46x, indicating the market may be discounting FCX's higher geopolitical risk. Investors should monitor whether the forward multiple compresses if copper prices soften, as the high operating leverage could lead to earnings disappointment.

The operating margin of 28.5% in 2026Q2 is above the 10-quarter average of 26.2%, but the 2025Q4 collapse to 14.4% highlights the earnings volatility inherent in the business. The net margin of 14.0% is supported by gold byproduct credits from Grasberg, which offset lower copper prices. However, the presence of non-controlling interests means that a portion of these margins does not accrue to FCX shareholders, as evidenced by the gap between net income and EPS growth. The recent emergence of R&D expenses ($53M in 2026Q2) suggests investment in leaching technology, which could provide a future margin tailwind if successful.

ROE of 3.1% and ROA of 1.7% are modest, reflecting the heavy asset base and the dilutive impact of non-controlling interests. The improvement from 2025Q4 lows suggests that the Grasberg ramp-up is beginning to contribute to returns, but the 10-quarter average ROIC of 3.7% indicates that the company has not yet achieved the returns seen in prior copper upcycles. The high fixed-cost base and capital intensity of mining mean that returns are highly sensitive to copper prices; a sustained price rally could drive ROIC toward double digits, while a downturn could compress it further. Investors should focus on the trend in ROIC relative to the cost of capital, which appears to be above the current level.

The increase in DIO from 128 days to 144 days over the past year suggests that inventory levels have built up, possibly due to the Grasberg restart and concentrate stockpiling. DSO improved to 18 days from 27 days in 2026Q1, reflecting better receivables collection, but the overall CCC remains elevated relative to the 10-quarter average of 84 days. The asset turnover of 0.12x is low, consistent with the capital-intensive nature of mining, but it has remained stable. The working capital swings, as noted in the cash flow analysis, add noise to quarterly results, and investors should monitor whether the inventory build is a temporary phenomenon or a sign of operational inefficiency.

The D/EBITDA ratio of 4.10x is elevated relative to the 10-quarter average of 4.7x, but it improved from the 8.88x peak in 2025Q4, reflecting the recovery in EBITDA. Interest coverage of 21.3x is strong, providing ample cushion for debt service even if copper prices fall. The company's net debt of $6.3B (total debt of $10.4B less cash of $4.1B) is manageable given the cash flow generation, but the high operating leverage means that a severe downturn could quickly erode coverage ratios. The recent deleveraging from the 2013 oil and gas misadventure appears to have been successful, and the current balance sheet provides flexibility for capital returns or opportunistic investments.

The quick ratio has declined from 1.41 in 2024Q1 to 0.92 in 2026Q2, suggesting that the company is increasingly reliant on inventory to meet short-term obligations. This is typical for mining companies, but it means that a sharp drop in copper prices could impair the value of inventory and strain liquidity. However, the company holds $4.1B in cash, which provides a substantial buffer. The current ratio remains above 2.0, indicating that current assets comfortably cover current liabilities. Under a severe stress scenario, such as a 30% drop in copper prices, the company's cash flow would decline, but the fortress balance sheet and low debt levels suggest it could weather the downturn without distress.

Compared to peers, FCX trades at a lower EV/EBITDA (12.96x) than SCCO (21.46x) but higher than TECK (13.48x) and HBM (12.99x). The valuation discount to SCCO likely reflects the geopolitical risk in Indonesia and the lower returns on capital. FCX's net margin of 14.0% is below SCCO's 32.3% but above TECK's 13.0%, indicating that the company's cost structure is competitive but not best-in-class. The gap in returns is structural, driven by the high capital intensity and the NCI drag, and may narrow as the Grasberg ramp-up matures. Investors should compare FCX's returns to its own historical performance rather than to SCCO, given the different asset profiles.