SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
NYSE:SCCO - New York Stock Exchange, Inc. - US84265V1052 - Common Stock - Currency: USD
Overall SCCO gets a fundamental rating of 7 out of 10. We evaluated SCCO against 152 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making SCCO a very profitable company, without any liquidiy or solvency issues. SCCO has a decent growth rate and is not valued too expensively. With these ratings, SCCO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
SCCO had positive earnings in the past year.
In the past year SCCO had a positive cash flow from operations.
In the past 5 years SCCO has always been profitable.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCCO has a better Return On Assets (18.04%) than 96.71% of its industry peers.
The Return On Equity of SCCO (36.82%) is better than 96.71% of its industry peers.
With an excellent Return On Invested Capital value of 21.04%, SCCO belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 8.52%.
The last Return On Invested Capital (21.04%) for SCCO is above the 3 year average (18.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 36.82% | ||
| ROIC | 21.04% |
ROA(3y)15.94%
ROA(5y)15.13%
ROE(3y)34.05%
ROE(5y)33.11%
ROIC(3y)18.44%
ROIC(5y)18.3%
1.3 Margins
SCCO has a better Profit Margin (29.53%) than 95.39% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
Looking at the Operating Margin, with a value of 48.58%, SCCO belongs to the top of the industry, outperforming 96.71% of the companies in the same industry.
SCCO's Operating Margin has improved in the last couple of years.
SCCO's Gross Margin of 58.58% is amongst the best of the industry. SCCO outperforms 92.11% of its industry peers.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.58% | ||
| PM (TTM) | 29.53% | ||
| GM | 58.58% |
OM growth 3Y-4.32%
OM growth 5Y5.15%
PM growth 3Y-1.67%
PM growth 5Y7.69%
GM growth 3Y-3.59%
GM growth 5Y2.39%
2. Health
2.1 Basic Checks
SCCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SCCO has more shares outstanding than it did 1 year ago.
SCCO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
SCCO has an Altman-Z score of 6.67. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.67, SCCO is doing good in the industry, outperforming 79.61% of the companies in the same industry.
The Debt to FCF ratio of SCCO is 1.84, which is an excellent value as it means it would take SCCO, only 1.84 years of fcf income to pay off all of its debts.
SCCO has a Debt to FCF ratio of 1.84. This is amongst the best in the industry. SCCO outperforms 82.24% of its industry peers.
SCCO has a Debt/Equity ratio of 0.63. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
SCCO has a worse Debt to Equity ratio (0.63) than 80.26% of its industry peers.
Even though the debt/equity ratio score it not favorable for SCCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 6.67 |
ROIC/WACC2.2
WACC9.58%
2.3 Liquidity
A Current Ratio of 2.75 indicates that SCCO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.75, SCCO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 2.28 indicates that SCCO has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.28, SCCO is doing good in the industry, outperforming 67.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.99% over the past year.
Measured over the past years, SCCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.21% on average per year.
Looking at the last year, SCCO shows a quite strong growth in Revenue. The Revenue has grown by 15.54% in the last year.
Measured over the past years, SCCO shows a quite strong growth in Revenue. The Revenue has been growing by 9.43% on average per year.
EPS 1Y (TTM)39.99%
EPS 3Y-0.14%
EPS 5Y19.21%
EPS Q2Q%81.08%
Revenue 1Y (TTM)15.54%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%21.29%
3.2 Future
The Earnings Per Share is expected to grow by 5.36% on average over the next years.
SCCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.76% yearly.
EPS Next Y7.22%
EPS Next 2Y5.16%
EPS Next 3Y5.36%
EPS Next 5YN/A
Revenue Next Year2.62%
Revenue Next 2Y2.36%
Revenue Next 3Y1.6%
Revenue Next 5Y5.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.11, the valuation of SCCO can be described as rather expensive.
73.68% of the companies in the same industry are more expensive than SCCO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SCCO is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.76 indicates a rather expensive valuation of SCCO.
Based on the Price/Forward Earnings ratio, SCCO is valued a bit cheaper than 65.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. SCCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 60.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a rather cheap valuation: SCCO is cheaper than 80.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.23 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.05
EPS Next 2Y5.16%
EPS Next 3Y5.36%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.09, SCCO pays a better dividend. On top of this SCCO pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SCCO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of SCCO has a limited annual growth rate of 5.69%.
SCCO has paid a dividend for at least 10 years, which is a reliable track record.
SCCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.69%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
48.48% of the earnings are spent on dividend by SCCO. This is a bit on the high side, but may be sustainable.
SCCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.48%
EPS Next 2Y5.16%
EPS Next 3Y5.36%
86.26
+0.07 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.46%
Inst Owner Change-0.12%
Ins Owners0.08%
Ins Owner Change0.78%
Market Cap68.68B
Analysts51.11
Price Target96.55 (11.93%)
Short Float %N/A
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend2.06
Dividend Growth(5Y)5.69%
DP48.48%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.2%
Min EPS beat(2)-2.17%
Max EPS beat(2)-0.23%
EPS beat(4)2
Avg EPS beat(4)9.55%
Min EPS beat(4)-2.17%
Max EPS beat(4)27.12%
EPS beat(8)4
Avg EPS beat(8)1.89%
EPS beat(12)6
Avg EPS beat(12)0.55%
EPS beat(16)8
Avg EPS beat(16)0.07%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-1.91%
Revenue beat(4)2
Avg Revenue beat(4)2.58%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)7.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.54%
Revenue beat(12)6
Avg Revenue beat(12)-1.05%
Revenue beat(16)9
Avg Revenue beat(16)-0.54%
PT rev (1m)0.15%
PT rev (3m)-4.11%
EPS NQ rev (1m)2.72%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)-1.47%
EPS NY rev (3m)-4.95%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 18.76 | ||
| P/S | 6.01 | ||
| P/FCF | 20.23 | ||
| P/OCF | 15.53 | ||
| P/B | 7.49 | ||
| P/tB | 7.59 | ||
| EV/EBITDA | 11.12 |
EPS(TTM)4.29
EY4.97%
EPS(NY)4.6
Fwd EY5.33%
FCF(TTM)4.26
FCFY4.94%
OCF(TTM)5.55
OCFY6.44%
SpS14.36
BVpS11.52
TBVpS11.36
PEG (NY)2.79
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.04% | ||
| ROE | 36.82% | ||
| ROCE | 33.74% | ||
| ROIC | 21.04% | ||
| ROICexc | 26.73% | ||
| ROICexgc | 26.99% | ||
| OM | 48.58% | ||
| PM (TTM) | 29.53% | ||
| GM | 58.58% | ||
| FCFM | 29.69% |
ROA(3y)15.94%
ROA(5y)15.13%
ROE(3y)34.05%
ROE(5y)33.11%
ROIC(3y)18.44%
ROIC(5y)18.3%
ROICexc(3y)22.02%
ROICexc(5y)22.27%
ROICexgc(3y)22.24%
ROICexgc(5y)22.5%
ROCE(3y)29.57%
ROCE(5y)29.35%
ROICexcg growth 3Y-3.95%
ROICexcg growth 5Y14.96%
ROICexc growth 3Y-3.91%
ROICexc growth 5Y15.01%
OM growth 3Y-4.32%
OM growth 5Y5.15%
PM growth 3Y-1.67%
PM growth 5Y7.69%
GM growth 3Y-3.59%
GM growth 5Y2.39%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 1.84 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 121.45% | ||
| Cap/Sales | 8.99% | ||
| Interest Coverage | 15.02 | ||
| Cash Conversion | 69.08% | ||
| Profit Quality | 100.52% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.28 | ||
| Altman-Z | 6.67 |
F-Score7
WACC9.58%
ROIC/WACC2.2
Cap/Depr(3y)120.52%
Cap/Depr(5y)109.72%
Cap/Sales(3y)9.54%
Cap/Sales(5y)8.84%
Profit Quality(3y)92.18%
Profit Quality(5y)103.23%
High Growth Momentum
Growth
EPS 1Y (TTM)39.99%
EPS 3Y-0.14%
EPS 5Y19.21%
EPS Q2Q%81.08%
EPS Next Y7.22%
EPS Next 2Y5.16%
EPS Next 3Y5.36%
EPS Next 5YN/A
Revenue 1Y (TTM)15.54%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%21.29%
Revenue Next Year2.62%
Revenue Next 2Y2.36%
Revenue Next 3Y1.6%
Revenue Next 5Y5.76%
EBIT growth 1Y32.5%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year18.93%
EBIT Next 3Y9.71%
EBIT Next 5YN/A
FCF growth 1Y32.36%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y23.75%
OCF growth 3Y0.99%
OCF growth 5Y18.26%