SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
142.41 USD
-5.22 (-3.54%)
143 USD
+0.59 (+0.41%)
Taking everything into account, SCCO scores 7 out of 10 in our fundamental rating. SCCO was compared to 156 industry peers in the Metals & Mining industry. SCCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year SCCO had a positive cash flow from operations.
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
The Return On Assets of SCCO (18.79%) is better than 97.42% of its industry peers.
The Return On Equity of SCCO (36.56%) is better than 97.42% 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 94.84% of the companies in the same industry.
SCCO had an Average Return On Invested Capital over the past 3 years of 18.44%. This is significantly above the industry average of 13.23%.
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
The Profit Margin of SCCO (30.98%) is better than 94.19% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
SCCO has a Operating Margin of 50.25%. This is amongst the best in the industry. SCCO outperforms 95.48% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.57%, SCCO belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
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.
The number of shares outstanding for SCCO remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.47 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO's Altman-Z score of 9.47 is fine compared to the rest of the industry. SCCO outperforms 75.48% 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 77.42% 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's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. SCCO is outperformed by 81.29% 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 | 9.47 |
ROIC/WACC2.02
WACC10.27%
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.
The Current ratio of SCCO (4.52) is better than 77.42% of its industry peers.
A Quick Ratio of 3.91 indicates that SCCO has no problem at all paying its short term obligations.
The Quick ratio of SCCO (3.91) is better than 74.19% 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.
The Earnings Per Share has been growing by 19.35% on average over the past years. This is quite good.
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.
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 Y22.32%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
EPS Next 5Y7.04%
Revenue Next Year8.72%
Revenue Next 2Y6.79%
Revenue Next 3Y4.52%
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 30.36 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 67.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.56, SCCO is valued at the same level.
A Price/Forward Earnings ratio of 26.30 indicates a quite expensive valuation of SCCO.
SCCO's Price/Forward Earnings is on the same level as the industry average.
SCCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 60.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.52 | ||
| EV/EBITDA | 16.78 |
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)1.36
PEG (5Y)1.57
EPS Next 2Y14.08%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, SCCO has a reasonable but not impressive dividend return.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 1.03. SCCO pays more dividend than 85.16% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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, but earnings are growing more, so the dividend growth is sustainable.
DP60.3%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
142.41
-5.22 (-3.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.54%
Inst Owner Change1.58%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap116.65B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target130.55 (-8.33%)
Short Float %N/A
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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)12.18%
PT rev (3m)32.59%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)30.85%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)19.82%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)5.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 26.3 | ||
| P/S | 9.46 | ||
| P/FCF | 33.52 | ||
| P/OCF | 25.26 | ||
| P/B | 11.16 | ||
| P/tB | 11.29 | ||
| EV/EBITDA | 16.78 |
EPS(TTM)4.69
EY3.29%
EPS(NY)5.41
Fwd EY3.8%
FCF(TTM)4.25
FCFY2.98%
OCF(TTM)5.64
OCFY3.96%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.36
PEG (5Y)1.57
Graham Number36.69
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 | 9.47 |
F-Score7
WACC10.27%
ROIC/WACC2.02
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)26.06%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%20.62%
EPS Next Y22.32%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
EPS Next 5Y7.04%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year8.72%
Revenue Next 2Y6.79%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year30.21%
EBIT Next 3Y11.47%
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 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.
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 30.36 and the Price/Book (PB) ratio is 11.16.
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 22.32% in the next year.