StockResearch · · 4 min read
A falling P/E can come from a rising earnings denominator. In steel and copper, that denominator often moves with the commodity cycle.
Higher selling prices can lift a producer’s earnings faster than revenue because some costs change more slowly. Share prices may already anticipate a later slowdown. A low trailing P/E can therefore describe recent peak profits rather than a low price relative to sustainable earnings.
On our October 22, 2026 review, the available Nucor (NUE) observation showed 20.9x P/E and 1.8x EV/Sales; Freeport-McMoRan (FCX) showed 33.9x P/E and 4.1x EV/Sales. Each ratio compares a different denominator. Their percentiles describe each company’s own available history, not a common threshold for the industry.
A trailing five-year window may include very different commodity conditions. A historical median is a useful reference, but it is not automatically mid-cycle earnings. Check the chart’s actual dates and what happened to margins during that period.
For steel, examine shipment volumes, realized selling prices, scrap or iron-ore costs and capacity utilization. For copper, examine production volumes, realized prices, ore grades and byproduct credits. Distributors and miners have different economics, even when both appear in an industry screen.
Use the steel screen or copper screen, then open a company’s P/E and sales histories. Read cash flow and balance-sheet capacity through weak periods. A historical percentile alone cannot tell you where the next cycle turns.
Check the current dated observations and their available history.
Open the steel screen