SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
188.41 USD
+4.11 (+2.23%)
190.318 USD
+1.91 (+1.01%)
Taking everything into account, SCCO scores 7 out of 10 in our fundamental rating. SCCO was compared to 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.
- SCCO had positive earnings in each of the past 5 years.
- 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.
- SCCO's Return On Equity of 36.56% is amongst the best of the industry. SCCO outperforms 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 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 10.32%.
- 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 94.16% of its industry peers.
- SCCO's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 50.25%, SCCO belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
- SCCO's Operating Margin has improved in the last couple of years.
- SCCO has a better Gross Margin (59.57%) than 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.
- The number of shares outstanding for SCCO remains at a similar level compared to 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 11.55. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
- SCCO's Altman-Z score of 11.55 is fine compared to the rest of the industry. SCCO outperforms 76.62% 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.
- SCCO has a better Debt to FCF ratio (1.94) than 79.22% of its industry peers.
- A Debt/Equity ratio of 0.65 indicates that 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/WACC1.98
WACC10.5%
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 Current ratio of 4.52. This is in the better half of the industry: SCCO outperforms 78.57% of its industry peers.
- A Quick Ratio of 3.91 indicates that SCCO has no problem at all paying 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
- 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.
- SCCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.43% yearly.
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.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 40.17 indicates a quite expensive valuation of SCCO.
- Compared to the rest of the industry, the Price/Earnings ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 68.83% of the companies listed in the same industry.
- SCCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 32.16 indicates a quite expensive valuation of SCCO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SCCO is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. SCCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.17 | ||
| Fwd PE | 32.16 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 76.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.34 | ||
| 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.
- SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.61
PEG (5Y)2.08
EPS Next 2Y18.65%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
- SCCO has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.02, SCCO pays a better dividend. On top of this SCCO pays more dividend than 84.42% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 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
- 60.30% of the earnings are spent on dividend by SCCO. 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 40.17 and the Price/Book (PB) ratio is 14.77.
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.