SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
132.03 USD
-4.75 (-3.47%)
129 USD
-3.03 (-2.29%)
Overall SCCO gets a fundamental rating of 7 out of 10. We evaluated SCCO against 154 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 is not valued too expensively and it also shows a decent growth rate. This makes SCCO very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SCCO was profitable.
SCCO had a positive operating cash flow in the past year.
SCCO had positive earnings in each of the past 5 years.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.79%, SCCO belongs to the top of the industry, outperforming 98.05% of the companies in the same industry.
SCCO has a Return On Equity of 36.56%. This is amongst the best in the industry. SCCO outperforms 98.05% of its industry peers.
With an excellent Return On Invested Capital value of 20.75%, SCCO belongs to the best of the industry, outperforming 97.40% 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 12.68%.
The 3 year average ROIC (18.44%) for SCCO is below the current ROIC(20.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.79% | ||
| ROE | 36.56% | ||
| ROIC | 20.75% |
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
The Profit Margin of SCCO (30.98%) is better than 94.16% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 50.25%, SCCO belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
SCCO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.57%, SCCO belongs to the top of the industry, outperforming 91.56% of the companies in the same industry.
SCCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.25% | ||
| PM (TTM) | 30.98% | ||
| GM | 59.57% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO is creating value.
Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
SCCO has about the same amout of 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 8.90. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.90, SCCO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
SCCO has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
SCCO's Debt to FCF ratio of 1.94 is fine compared to the rest of the industry. SCCO outperforms 79.87% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, SCCO is not doing good in the industry: 82.47% of the companies in the same industry are doing better.
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 | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 8.9 |
ROIC/WACC2.33
WACC8.89%
2.3 Liquidity
A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.52, SCCO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Quick Ratio of 3.91 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a better Quick ratio (3.91) than 74.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.56% over the past year.
SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.16% yearly.
The Revenue has grown by 12.70% in the past year. This is quite good.
SCCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.43% yearly.
EPS 1Y (TTM)25.56%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%20.63%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
3.2 Future
Based on estimates for the next years, SCCO will show a small growth in Earnings Per Share. The EPS will grow by 6.81% on average per year.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 27.91 indicates a quite expensive valuation of SCCO.
Compared to the rest of the industry, the Price/Earnings ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 68.18% of the companies listed in the same industry.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
SCCO is valuated rather expensively with a Price/Forward Earnings ratio of 24.27.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (34.57), we can say SCCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 24.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCCO.
SCCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 15.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SCCO may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.46
EPS Next 2Y13.74%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, SCCO has a reasonable but not impressive dividend return.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 2.63. SCCO pays more dividend than 86.36% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of SCCO has a limited annual growth rate of 5.77%.
SCCO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SCCO pays out 60.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SCCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.3%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
132.03
-4.75 (-3.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change-3.14%
Ins Owners0.07%
Ins Owner Change0.46%
Market Cap107.22B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target116.38 (-11.85%)
Short Float %11.42%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend2.04
Dividend Growth(5Y)5.77%
DP60.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.36%
Min EPS beat(2)0.02%
Max EPS beat(2)4.7%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-2.17%
Max EPS beat(4)4.7%
EPS beat(8)5
Avg EPS beat(8)3.48%
EPS beat(12)8
Avg EPS beat(12)4.59%
EPS beat(16)9
Avg EPS beat(16)0.41%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)3.44%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)-0.65%
PT rev (1m)15.06%
PT rev (3m)16.49%
EPS NQ rev (1m)17.58%
EPS NQ rev (3m)22.93%
EPS NY rev (1m)8.19%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)8.16%
Revenue NQ rev (3m)11.06%
Revenue NY rev (1m)3.78%
Revenue NY rev (3m)4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.91 | ||
| Fwd PE | 24.27 | ||
| P/S | 8.69 | ||
| P/FCF | 30.81 | ||
| P/OCF | 23.22 | ||
| P/B | 10.26 | ||
| P/tB | 10.38 | ||
| EV/EBITDA | 15.44 |
EPS(TTM)4.73
EY3.58%
EPS(NY)5.44
Fwd EY4.12%
FCF(TTM)4.29
FCFY3.25%
OCF(TTM)5.69
OCFY4.31%
SpS15.19
BVpS12.87
TBVpS12.72
PEG (NY)1.28
PEG (5Y)1.46
Graham Number37.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.79% | ||
| ROE | 36.56% | ||
| ROCE | 33.27% | ||
| ROIC | 20.75% | ||
| ROICexc | 27.4% | ||
| ROICexgc | 27.64% | ||
| OM | 50.25% | ||
| PM (TTM) | 30.98% | ||
| GM | 59.57% | ||
| FCFM | 28.22% |
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%
ROICexgc growth 3Y-3.95%
ROICexgc 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 | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 133.58% | ||
| Cap/Sales | 9.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.5% | ||
| Profit Quality | 91.09% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 | ||
| Altman-Z | 8.9 |
F-Score7
WACC8.89%
ROIC/WACC2.33
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)25.56%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%20.63%
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.69%
EBIT Next 3Y7.9%
EBIT Next 5Y10.17%
FCF growth 1Y13.37%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y12.26%
OCF growth 3Y0.99%
OCF growth 5Y18.26%
SOUTHERN COPPER CORP / SCCO FAQ
What is the fundamental rating for SCCO stock?
ChartMill assigns a fundamental rating of 7 / 10 to SCCO.
Can you provide the valuation status for SOUTHERN COPPER CORP?
ChartMill assigns a valuation rating of 4 / 10 to SOUTHERN COPPER CORP (SCCO). This can be considered as Fairly Valued.
How profitable is SOUTHERN COPPER CORP (SCCO) stock?
SOUTHERN COPPER CORP (SCCO) has a profitability rating of 10 / 10.
What is the valuation of SOUTHERN COPPER CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SOUTHERN COPPER CORP (SCCO) is 27.91 and the Price/Book (PB) ratio is 10.26.
What is the earnings growth outlook for SOUTHERN COPPER CORP?
The Earnings per Share (EPS) of SOUTHERN COPPER CORP (SCCO) is expected to grow by 21.84% in the next year.