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Why SOUTHERN COPPER CORP (NYSE:SCCO) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Oct 28, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if SOUTHERN COPPER CORP (NYSE:SCCO) is suited for quality investing. Investors should of course do their own research, but we spotted SOUTHERN COPPER CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Some of the quality metrics of NYSE:SCCO highlighted

  • Over the past 5 years, SOUTHERN COPPER CORP has experienced impressive revenue growth, with 6.88% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • 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.
  • SOUTHERN COPPER CORP exhibits impressive Profit Quality (5-year) with a 99.34% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 7.79%, SOUTHERN COPPER CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • The EBIT 5-year growth of SOUTHERN COPPER CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, SCCO scores 6 out of 10 in our fundamental rating. SCCO was compared to 157 industry peers in the Metals & Mining industry. SCCO has an excellent profitability rating, but there are some minor concerns on its financial health. SCCO has a decent growth rate and is not valued too expensively.

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.

Disclaimer

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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