SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
124.14 USD
-2.91 (-2.29%)
123.75 USD
-0.39 (-0.31%)
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. This makes SCCO very considerable 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.
In the past 5 years SCCO always reported a positive cash flow from operatings.
1.2 Ratios
SCCO's Return On Assets of 18.79% is amongst the best of the industry. SCCO outperforms 98.05% of its industry peers.
SCCO has a better Return On Equity (36.56%) than 98.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.75%, SCCO belongs to the top of the industry, outperforming 96.75% 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 12.85%.
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
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.
In the last couple of years the Profit Margin of SCCO has grown nicely.
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 has a Gross Margin of 59.57%. This is amongst the best in 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
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.
The number of shares outstanding for SCCO remains at a similar level compared to 5 years ago.
The debt/assets ratio for SCCO has been reduced compared to a year ago.
2.2 Solvency
SCCO has an Altman-Z score of 8.65. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SCCO (8.65) is better than 77.27% 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.
Looking at the Debt to FCF ratio, with a value of 1.94, SCCO is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
SCCO's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. SCCO is outperformed by 82.47% 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 | 8.65 |
ROIC/WACC2.21
WACC9.38%
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.
Looking at the Current ratio, with a value of 4.52, SCCO is in the better half of 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's Quick ratio of 3.91 is fine compared to the rest 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 25.56% 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 19.16% 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)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
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.81% 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 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.25, SCCO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.56, SCCO is valued at the same level.
With a Price/Forward Earnings ratio of 22.82, SCCO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as SCCO.
SCCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
60.39% 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 | 28.97 | ||
| EV/EBITDA | 14.87 |
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)1.2
PEG (5Y)1.37
EPS Next 2Y13.74%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.63, 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 2.44, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.3%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
124.14
-2.91 (-2.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change2.6%
Ins Owners0.07%
Ins Owner Change0.59%
Market Cap100.82B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target116.38 (-6.25%)
Short Float %10.58%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)11.29%
EPS NQ rev (3m)30.23%
EPS NY rev (1m)8.19%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)6.45%
Revenue NQ rev (3m)16.3%
Revenue NY rev (1m)3.78%
Revenue NY rev (3m)4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.82 | ||
| P/S | 8.17 | ||
| P/FCF | 28.97 | ||
| P/OCF | 21.83 | ||
| P/B | 9.65 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 14.87 |
EPS(TTM)4.73
EY3.81%
EPS(NY)5.44
Fwd EY4.38%
FCF(TTM)4.29
FCFY3.45%
OCF(TTM)5.69
OCFY4.58%
SpS15.19
BVpS12.87
TBVpS12.72
PEG (NY)1.2
PEG (5Y)1.37
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 | 8.65 |
F-Score7
WACC9.38%
ROIC/WACC2.21
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 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 26.25 and the Price/Book (PB) ratio is 9.65.
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.