SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
106.88 USD
-1.57 (-1.45%)
106.87 USD
-0.01 (-0.01%)
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 156 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.
SCCO had a positive operating cash flow in the past year.
Each year in the past 5 years SCCO has 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 18.46%, SCCO belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
SCCO's Return On Equity of 36.15% is amongst the best of the industry. SCCO outperforms 97.44% of its industry peers.
SCCO's Return On Invested Capital of 20.12% is amongst the best of the industry. SCCO outperforms 97.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 12.92%.
The 3 year average ROIC (18.44%) for SCCO is below the current ROIC(20.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.46% | ||
| ROE | 36.15% | ||
| ROIC | 20.12% |
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's Profit Margin of 30.37% is amongst the best of the industry. SCCO outperforms 92.95% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO has a Operating Margin of 49.46%. This is amongst the best in the industry. SCCO outperforms 96.15% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
SCCO has a better Gross Margin (59.20%) than 91.67% of its industry peers.
SCCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.46% | ||
| PM (TTM) | 30.37% | ||
| GM | 59.2% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO is creating value.
Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
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 7.93. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.93, SCCO is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
SCCO has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
The Debt to FCF ratio of SCCO (1.95) is better than 80.77% of its industry peers.
SCCO has a Debt/Equity ratio of 0.68. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, SCCO is doing worse than 81.41% 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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 7.93 |
ROIC/WACC2.16
WACC9.33%
2.3 Liquidity
SCCO has a Current Ratio of 5.27. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCCO (5.27) is better than 83.33% of its industry peers.
A Quick Ratio of 4.51 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a Quick ratio of 4.51. This is amongst the best in the industry. SCCO outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.27 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.66% 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.
Looking at the last year, SCCO shows a quite strong growth in Revenue. The Revenue has grown by 13.01% in the last year.
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)31.66%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%2.93%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
3.2 Future
The Earnings Per Share is expected to grow by 6.81% 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 Y11.53%
EPS Next 2Y3.88%
EPS Next 3Y4.66%
EPS Next 5Y6.81%
Revenue Next Year3.51%
Revenue Next 2Y1.29%
Revenue Next 3Y2.15%
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
With a Price/Earnings ratio of 23.75, SCCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 74.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, SCCO is valued at the same level.
The Price/Forward Earnings ratio is 23.55, which indicates a rather expensive current valuation of SCCO.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. SCCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than the industry average as 62.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.07 | ||
| EV/EBITDA | 13.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SCCO may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.24
EPS Next 2Y3.88%
EPS Next 3Y4.66%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.54%.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 2.51. SCCO pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
58.99% of the earnings are spent on dividend by SCCO. This is a bit on the high side, but may be sustainable.
The dividend of SCCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP58.99%
EPS Next 2Y3.88%
EPS Next 3Y4.66%
106.88
-1.57 (-1.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.76%
Inst Owner Change-1.15%
Ins Owners0.07%
Ins Owner Change0.29%
Market Cap86.80B
Analysts52
Price Target98.46 (-7.88%)
Short Float %N/A
Short Ratio6.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend2.06
Dividend Growth(5Y)5.77%
DP58.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.65%
Min EPS beat(2)2.59%
Max EPS beat(2)4.7%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-2.17%
Max EPS beat(4)4.7%
EPS beat(8)5
Avg EPS beat(8)4.27%
EPS beat(12)8
Avg EPS beat(12)5.48%
EPS beat(16)8
Avg EPS beat(16)-0.04%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)3.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)3.44%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.09%
Revenue beat(16)8
Avg Revenue beat(16)-0.99%
PT rev (1m)-1.45%
PT rev (3m)6.43%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)1.54%
EPS NY rev (3m)5.37%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.75 | ||
| Fwd PE | 23.55 | ||
| P/S | 7.3 | ||
| P/FCF | 25.07 | ||
| P/OCF | 19.3 | ||
| P/B | 8.69 | ||
| P/tB | 8.8 | ||
| EV/EBITDA | 13.38 |
EPS(TTM)4.5
EY4.21%
EPS(NY)4.54
Fwd EY4.25%
FCF(TTM)4.26
FCFY3.99%
OCF(TTM)5.54
OCFY5.18%
SpS14.64
BVpS12.29
TBVpS12.14
PEG (NY)2.06
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.46% | ||
| ROE | 36.15% | ||
| ROCE | 32.26% | ||
| ROIC | 20.12% | ||
| ROICexc | 25.8% | ||
| ROICexgc | 26.02% | ||
| OM | 49.46% | ||
| PM (TTM) | 30.37% | ||
| GM | 59.2% | ||
| FCFM | 29.13% |
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%
ROICexcg growth 3Y-3.95%
ROICexcg 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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 120.75% | ||
| Cap/Sales | 8.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.76% | ||
| Profit Quality | 95.93% | ||
| Current Ratio | 5.27 | ||
| Quick Ratio | 4.51 | ||
| Altman-Z | 7.93 |
F-Score7
WACC9.33%
ROIC/WACC2.16
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)31.66%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%2.93%
EPS Next Y11.53%
EPS Next 2Y3.88%
EPS Next 3Y4.66%
EPS Next 5Y6.81%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
Revenue Next Year3.51%
Revenue Next 2Y1.29%
Revenue Next 3Y2.15%
Revenue Next 5Y5.1%
EBIT growth 1Y24.19%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.57%
EBIT Next 3Y8.57%
EBIT Next 5Y10.17%
FCF growth 1Y30.93%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y23.09%
OCF growth 3Y0.99%
OCF growth 5Y18.26%