SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
125.38 USD
+1.24 (+1%)
126.68 USD
+1.3 (+1.04%)
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 154 industry peers in the Metals & Mining industry. SCCO gets an excellent profitability rating and is at the same time showing great financial health properties. SCCO has a decent growth rate and is not valued too expensively. With these ratings, SCCO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year SCCO was profitable.
In the past year SCCO had a positive cash flow from operations.
SCCO had positive earnings in each of the past 5 years.
In the past 5 years SCCO always reported a positive cash flow from operatings.
1.2 Ratios
SCCO has a Return On Assets of 18.79%. This is amongst the best in 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.
SCCO has a better Return On Invested Capital (20.75%) than 96.75% 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 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
SCCO has a Profit Margin of 30.98%. This is amongst the best in the industry. SCCO outperforms 94.16% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
SCCO's Operating Margin of 50.25% is amongst the best of the industry. SCCO outperforms 95.45% of its industry peers.
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.
SCCO's Gross Margin has improved in the last couple of years.
| 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.
SCCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.57 indicates that SCCO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.57, SCCO is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a Debt to Equity ratio of 0.65. This is amonst the worse of the industry: SCCO underperforms 82.47% of its industry peers.
Even though the debt/equity ratio score it not favorable for SCCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 8.57 |
ROIC/WACC2.21
WACC9.37%
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 better Current ratio (4.52) than 77.27% 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.
With a decent Quick ratio value of 3.91, SCCO is doing good in the industry, outperforming 75.32% 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 25.56%, 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 19.16% 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)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
The Earnings Per Share is expected to grow by 6.81% on average over the next years.
The Revenue is expected to grow by 5.10% on average over the next years.
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.
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 26.51.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than 68.83% of the companies in the same industry.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.47.
The Price/Forward Earnings ratio is 23.04, which indicates a rather expensive current valuation of SCCO.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
SCCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 23.04 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 61.04% of the companies in the same industry.
75.32% of the companies in the same industry are more expensive than SCCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.26 | ||
| EV/EBITDA | 14.68 |
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)1.21
PEG (5Y)1.38
EPS Next 2Y13.74%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
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.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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 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.
The dividend of SCCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.3%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
125.38
+1.24 (+1%)
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 Cap101.82B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target116.38 (-7.18%)
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 | 26.51 | ||
| Fwd PE | 23.04 | ||
| P/S | 8.26 | ||
| P/FCF | 29.26 | ||
| P/OCF | 22.05 | ||
| P/B | 9.74 | ||
| P/tB | 9.86 | ||
| EV/EBITDA | 14.68 |
EPS(TTM)4.73
EY3.77%
EPS(NY)5.44
Fwd EY4.34%
FCF(TTM)4.29
FCFY3.42%
OCF(TTM)5.69
OCFY4.54%
SpS15.19
BVpS12.87
TBVpS12.72
PEG (NY)1.21
PEG (5Y)1.38
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 | 8.57 |
F-Score7
WACC9.37%
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 26.51 and the Price/Book (PB) ratio is 9.74.
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.