SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
182.196 USD
+5.79 (+3.28%)
SCCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. SCCO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SCCO is not valued too expensively and it also shows a decent growth rate. These ratings would make SCCO suitable 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.
- 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
- 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.
- With an excellent Return On Equity value of 36.56%, SCCO belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
- SCCO has a better Return On Invested Capital (20.75%) than 94.23% of its industry peers.
- SCCO had an Average Return On Invested Capital over the past 3 years of 18.44%. This is significantly above the industry average of 10.34%.
- 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
- The Profit Margin of SCCO (30.98%) is better than 94.23% of its industry peers.
- In the last couple of years the Profit Margin of SCCO has grown nicely.
- With an excellent Operating Margin value of 50.25%, SCCO belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
- In the last couple of years the Operating Margin of SCCO has grown nicely.
- The Gross Margin of SCCO (59.57%) is better than 91.67% 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.
- 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.
- The debt/assets ratio for SCCO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.16 indicates that SCCO is not in any danger for bankruptcy at the moment.
- SCCO has a better Altman-Z score (11.16) than 76.92% 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 has a better Debt to FCF ratio (1.94) than 78.21% 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 78.21% 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 | 11.16 |
ROIC/WACC2.01
WACC10.34%
2.3 Liquidity
- A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
- SCCO has a better Current ratio (4.52) than 78.21% of its industry peers.
- 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 75.00% 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.
- SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.35% yearly.
- 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 Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue Next Year11.54%
Revenue Next 2Y9.15%
Revenue Next 3Y5.23%
Revenue Next 5Y5.1%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 38.85 indicates a quite expensive valuation of SCCO.
- SCCO's Price/Earnings ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 69.87% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. SCCO is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 32.76, the valuation of SCCO can be described as expensive.
- SCCO's Price/Forward Earnings ratio is in line with the industry average.
- SCCO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.85 | ||
| Fwd PE | 32.76 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are more expensive than SCCO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than the industry average as 76.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.88 | ||
| EV/EBITDA | 20.73 |
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)1.67
PEG (5Y)2.01
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
- SCCO has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
- SCCO's Dividend Yield is rather good when compared to the industry average which is at 0.96. SCCO pays more dividend than 84.62% of the companies in the same industry.
- SCCO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 2Y15.61%
EPS Next 3Y8.23%
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 38.85 and the Price/Book (PB) ratio is 14.28.
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 23.28% in the next year.