SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
140.41 USD
+0.46 (+0.33%)
141.923 USD
+1.51 (+1.08%)
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 155 industry peers in the Metals & Mining industry. SCCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SCCO has a correct valuation and a medium growth rate. These ratings would make SCCO suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SCCO was profitable.
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's Return On Assets of 18.79% is amongst the best of the industry. SCCO outperforms 97.40% of its industry peers.
SCCO's Return On Equity of 36.56% is amongst the best of the industry. SCCO outperforms 97.40% of its industry peers.
SCCO has a Return On Invested Capital of 20.75%. This is amongst the best in the industry. SCCO outperforms 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 13.20%.
The last Return On Invested Capital (20.75%) for SCCO is above the 3 year average (18.44%), which is a sign of increasing profitability.
| 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
SCCO's Profit Margin of 30.98% is amongst the best of the industry. SCCO outperforms 94.16% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO has a Operating Margin of 50.25%. This is amongst the best in the industry. SCCO outperforms 95.45% of its industry peers.
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.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SCCO is creating value.
SCCO has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 9.37 indicates that SCCO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.37, SCCO is in the better half of the industry, outperforming 74.03% 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 79.22% of its industry peers.
SCCO has a Debt/Equity ratio of 0.65. This is a neutral value indicating 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: 81.17% of the companies in the same industry are doing better.
Although SCCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 9.37 |
ROIC/WACC2.13
WACC9.72%
2.3 Liquidity
SCCO has a Current Ratio of 4.52. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCCO (4.52) is better than 77.92% of its industry peers.
SCCO has a Quick Ratio of 3.91. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
SCCO has a Quick ratio of 3.91. This is in the better half of the industry: SCCO outperforms 74.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 |
3. Growth
3.1 Past
SCCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.06%, which is quite impressive.
Measured over the past years, SCCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.35% on average per year.
The Revenue has grown by 12.70% in the past year. This is quite good.
The Revenue has been growing by 9.43% on average over the past years. This is quite good.
EPS 1Y (TTM)26.06%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%20.62%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
3.2 Future
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y22.32%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
EPS Next 5Y7.04%
Revenue Next Year8.72%
Revenue Next 2Y6.79%
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
Based on the Price/Earnings ratio of 29.94, the valuation of SCCO can be described as expensive.
SCCO's Price/Earnings ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 66.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. SCCO is around the same levels.
SCCO is valuated quite expensively with a Price/Forward Earnings ratio of 25.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCCO is on the same level as its industry peers.
SCCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.93 |
4.2 Price Multiples
61.04% of the companies in the same industry are more expensive than SCCO, based on the Enterprise Value to EBITDA ratio.
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 | 33.05 | ||
| EV/EBITDA | 16.55 |
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)1.34
PEG (5Y)1.55
EPS Next 2Y14.08%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, SCCO pays a better dividend. On top of this SCCO pays more dividend than 87.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of SCCO has a limited annual growth rate of 5.77%.
SCCO has paid a dividend for at least 10 years, which is 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, but earnings are growing more, so the dividend growth is sustainable.
DP60.3%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
140.41
+0.46 (+0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.54%
Inst Owner Change1.57%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap115.01B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target130.55 (-7.02%)
Short Float %N/A
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)12.18%
PT rev (3m)32.35%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)35.11%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)20.18%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.93 | ||
| P/S | 9.32 | ||
| P/FCF | 33.05 | ||
| P/OCF | 24.9 | ||
| P/B | 11.01 | ||
| P/tB | 11.13 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)4.69
EY3.34%
EPS(NY)5.41
Fwd EY3.86%
FCF(TTM)4.25
FCFY3.03%
OCF(TTM)5.64
OCFY4.02%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.34
PEG (5Y)1.55
Graham Number36.69
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 | 9.37 |
F-Score7
WACC9.72%
ROIC/WACC2.13
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)26.06%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%20.62%
EPS Next Y22.32%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
EPS Next 5Y7.04%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year8.72%
Revenue Next 2Y6.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year30.21%
EBIT Next 3Y11.47%
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 5 / 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 29.94 and the Price/Book (PB) ratio is 11.01.
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 22.32% in the next year.