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Should you consider SOUTHERN COPPER CORP (NYSE:SCCO) for quality investing?

By Mill Chart

Last update: Sep 27, 2024

In this article we will dive into SOUTHERN COPPER CORP (NYSE:SCCO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed SOUTHERN COPPER CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.


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Exploring Why NYSE:SCCO Holds Appeal for Quality Investors.

  • SOUTHERN COPPER CORP has shown strong performance in revenue growth over the past 5 years, with a 6.88% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 21.67%, SOUTHERN COPPER CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • SOUTHERN COPPER CORP maintains a healthy Debt/Free Cash Flow Ratio of 2.91, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 99.34%, SOUTHERN COPPER CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • SOUTHERN COPPER CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 7.79%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, SOUTHERN COPPER CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of NYSE:SCCO

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

SCCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. While SCCO has a great profitability rating, there are some minor concerns on its financial health. SCCO is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of SCCO contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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