SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
145.3 USD
-4.22 (-2.82%)
147.57 USD
+2.27 (+1.56%)
Taking everything into account, SCCO scores 7 out of 10 in our fundamental rating. SCCO was compared to 156 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 could make SCCO a good candidate 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.
Each year in the past 5 years SCCO has been profitable.
In the past 5 years SCCO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.79%, SCCO belongs to the top of the industry, outperforming 97.44% 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 97.44% of its industry peers.
The Return On Invested Capital of SCCO (20.75%) is better than 94.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 13.25%.
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
SCCO has a Profit Margin of 30.98%. This is amongst the best in the industry. SCCO outperforms 94.23% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
SCCO has a better Operating Margin (50.25%) than 95.51% of its industry peers.
In the last couple of years the Operating Margin of SCCO has grown nicely.
With an excellent Gross Margin value of 59.57%, SCCO belongs to the best of the industry, outperforming 91.67% 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
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCCO has about the same amount of shares outstanding.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
SCCO has an Altman-Z score of 9.61. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO has a better Altman-Z score (9.61) than 75.64% of its industry peers.
The Debt to FCF ratio of SCCO is 1.94, which is an excellent value as it means it would take SCCO, only 1.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCCO (1.94) is better than 77.56% 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.
SCCO has a worse Debt to Equity ratio (0.65) than 81.41% of its industry peers.
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 | 9.61 |
ROIC/WACC2.05
WACC10.13%
2.3 Liquidity
A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.52, SCCO is in the better half of the industry, outperforming 76.92% 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.
Looking at the Quick ratio, with a value of 3.91, SCCO is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 19.35% on average over the past years. This is quite good.
SCCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.70%.
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
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
Based on estimates for the next years, SCCO will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue Next Year9.31%
Revenue Next 2Y7.84%
Revenue Next 3Y4.63%
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 30.98 indicates a quite expensive valuation of SCCO.
68.59% 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 26.84, SCCO is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.13, the valuation of SCCO can be described as expensive.
SCCO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (23.40), we can say SCCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 26.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 60.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 17.11 |
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)1.33
PEG (5Y)1.6
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, SCCO pays a better dividend. On top of this SCCO pays more dividend than 85.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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.
SCCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.3%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
145.3
-4.22 (-2.82%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.54%
Inst Owner Change1.58%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap119.02B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target134.67 (-7.32%)
Short Float %9.98%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)3.74%
PT rev (3m)36.78%
EPS NQ rev (1m)3.76%
EPS NQ rev (3m)33.23%
EPS NY rev (1m)0.11%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)21.18%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 26.13 | ||
| P/S | 9.65 | ||
| P/FCF | 34.2 | ||
| P/OCF | 25.77 | ||
| P/B | 11.39 | ||
| P/tB | 11.52 | ||
| EV/EBITDA | 17.11 |
EPS(TTM)4.69
EY3.23%
EPS(NY)5.56
Fwd EY3.83%
FCF(TTM)4.25
FCFY2.92%
OCF(TTM)5.64
OCFY3.88%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.33
PEG (5Y)1.6
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 | 9.61 |
F-Score7
WACC10.13%
ROIC/WACC2.05
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 Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year9.31%
Revenue Next 2Y7.84%
Revenue Next 3Y4.63%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year33.03%
EBIT Next 3Y12.68%
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 30.98 and the Price/Book (PB) ratio is 11.39.
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 23.28% in the next year.