SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
184.3 USD
+7.89 (+4.47%)
185.1 USD
+0.8 (+0.43%)
SCCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively. These ratings would make SCCO suitable for quality investing!
1. Profitability
1.1 Basic Checks
- SCCO had positive earnings in the past year.
- SCCO had a positive operating cash flow in the past year.
- In the past 5 years SCCO has always been profitable.
- Each year in the past 5 years SCCO had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 18.79%, SCCO belongs to the best of the industry, outperforming 98.05% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 36.56%, SCCO belongs to the top of the industry, outperforming 98.05% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 20.75%, SCCO belongs to the top of the industry, outperforming 94.81% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 10.34%.
- 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
- With an excellent Profit Margin value of 30.98%, SCCO belongs to the best of the industry, outperforming 94.16% of the companies in the same industry.
- SCCO's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 50.25%, SCCO belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCCO has grown nicely.
- SCCO's Gross Margin of 59.57% is amongst the best of the industry. SCCO outperforms 91.56% of its industry peers.
- 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.
- Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
- 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 11.55. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
- SCCO has a better Altman-Z score (11.55) than 76.62% of its industry peers.
- 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.
- Looking at the Debt to Equity ratio, with a value of 0.65, SCCO is doing worse than 78.57% of the companies in the same industry.
- 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 | 11.55 |
ROIC/WACC2.01
WACC10.33%
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.
- SCCO has a Current ratio of 4.52. This is in the better half of the industry: SCCO outperforms 78.57% 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 75.32% 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 26.06% 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 19.35% on average per year.
- 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
- The Earnings Per Share is expected to grow by 7.04% 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 5.10% yearly.
EPS Next Y25.03%
EPS Next 2Y18.65%
EPS Next 3Y10.05%
EPS Next 5Y7.04%
Revenue Next Year11.99%
Revenue Next 2Y11.16%
Revenue Next 3Y5.8%
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
- SCCO is valuated quite expensively with a Price/Earnings ratio of 39.30.
- Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than 68.83% of the companies in the same industry.
- SCCO is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- SCCO is valuated quite expensively with a Price/Forward Earnings ratio of 31.46.
- 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 (25.98), we can say SCCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 31.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 60.39% of the companies listed in the same industry.
- SCCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.37 | ||
| EV/EBITDA | 21.64 |
4.3 Compensation for Growth
- SCCO's 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)1.57
PEG (5Y)2.03
EPS Next 2Y18.65%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
- SCCO has a Yearly Dividend Yield of 1.72%.
- SCCO's Dividend Yield is rather good when compared to the industry average which is at 1.02. SCCO pays more dividend than 84.42% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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.
- SCCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.3%
EPS Next 2Y18.65%
EPS Next 3Y10.05%
SOUTHERN COPPER CORP / SCCO FAQ
What is the fundamental rating for SCCO stock?
ChartMill assigns a fundamental rating of 7 / 10 to SCCO.
What is the valuation status for SCCO stock?
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.
Can you provide the PE and PB ratios for SCCO stock?
The Price/Earnings (PE) ratio for SOUTHERN COPPER CORP (SCCO) is 39.3 and the Price/Book (PB) ratio is 14.45.
Can you provide the expected EPS growth for SCCO stock?
The Earnings per Share (EPS) of SOUTHERN COPPER CORP (SCCO) is expected to grow by 25.03% in the next year.