Freeport-McMoRan Inc. (NYSE:FCX)

The share price exhibited considerable volatility over the analyzed period. Initially, the price rose from $26.65 in 2006 to a peak of $52.45 in early 2011, followed by a sharp decline to a low of $7.43 in 2016. After this trough, the share price recovered steadily, reaching $43.67 in 2022 before experiencing a slight downward adjustment, ending near $39.47 in 2025.

Sales per share demonstrated some cyclicality but with less pronounced fluctuations compared to the share price. The figure increased significantly between 2006 and 2008, reaching $22.13, then decreased to $10.26 by 2017. From 2018 onwards, sales per share gradually improved, reaching $17.71 by 2025, reflecting a moderate recovery in operational performance.

Price-to-Sales (P/S) ratio oscillated in line with changes in share price and sales. It started at a relatively high level of 2.4 in 2006, dipped sharply to 0.59 in 2016 during the period of low share prices, and climbed back to around 2.23 by 2025. The peak P/S ratio of 3.38 in 2021 indicates a phase where market valuation outpaced sales growth, pointing to heightened investor optimism or expectations during that time.

Overall trends

The share price and P/S ratio show a strong correlation, both declining sharply around 2015-2016 and recovering substantially in subsequent years. Sales per share, while more stable, mirror a general pattern of peak, decline, and recovery over the two decades.

Volatility and recovery

The significant drop in share price and P/S ratio around 2015-2016 suggests external or internal challenges impacting valuation, with subsequent recovery indicating improvement in market sentiment and possibly operational results.

Market valuation insights

The elevated P/S ratio in 2021 implies that the market valuation grew faster than sales, potentially due to optimistic growth prospects or sector-wide trends influencing investor behavior.

Sales performance

Sales per share trended upward until 2008 before a multi-year decline, reaching a minimum around 2017. The gradual increase afterward points to a resumption of sales growth, contributing positively to financial performance.