SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
170.52 USD
+9.97 (+6.21%)
171 USD
+0.48 (+0.28%)
Overall SCCO gets a fundamental rating of 7 out of 10. We evaluated SCCO against 157 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. While showing a medium growth rate, SCCO is valued expensive at the moment. 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.
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
SCCO has a better Return On Assets (18.79%) than 97.45% of its industry peers.
The Return On Equity of SCCO (36.56%) is better than 98.09% of its industry peers.
SCCO has a better Return On Invested Capital (20.75%) than 94.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 10.36%.
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
SCCO's Profit Margin of 30.98% is amongst the best of the industry. SCCO outperforms 94.27% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO's Operating Margin of 50.25% is amongst the best of the industry. SCCO outperforms 95.54% of its industry peers.
In the last couple of years the Operating Margin of SCCO has grown nicely.
Looking at the Gross Margin, with a value of 59.57%, SCCO belongs to the top of the industry, outperforming 91.72% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO is creating value.
SCCO has about the same amout of shares outstanding than it did 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 10.87 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO has a Altman-Z score of 10.87. This is in the better half of the industry: SCCO outperforms 79.62% 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.
With a decent Debt to FCF ratio value of 1.94, SCCO is doing good in the industry, outperforming 78.34% of the companies in the same industry.
SCCO has a Debt/Equity ratio of 0.65. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, SCCO is not doing good in the industry: 78.98% of the companies in the same industry are doing better.
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 | 10.87 |
ROIC/WACC2.04
WACC10.15%
2.3 Liquidity
A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
SCCO's Current ratio of 4.52 is fine compared to the rest of the industry. SCCO outperforms 78.34% 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.
The Quick ratio of SCCO (3.91) is better than 75.16% 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.
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
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue Next Year9.31%
Revenue Next 2Y7.84%
Revenue Next 3Y4.63%
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
A Price/Earnings ratio of 36.36 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 65.61% 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 27.19.
The Price/Forward Earnings ratio is 30.66, which means the current valuation is very expensive for SCCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCCO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (23.92), we can say SCCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.66 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 73.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.13 | ||
| EV/EBITDA | 20.04 |
4.3 Compensation for Growth
The 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)1.56
PEG (5Y)1.88
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.89%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, SCCO pays a better dividend. On top of this SCCO pays more dividend than 85.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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
60.30% of the earnings are spent on dividend by SCCO. 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%
170.52
+9.97 (+6.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.48%
Inst Owner Change0.22%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap139.67B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts52.5
Price Target134.67 (-21.02%)
Short Float %9.98%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
Yearly Dividend2.04
Dividend Growth(5Y)5.77%
DP60.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)3.15%
PT rev (3m)33.15%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)33.38%
EPS NY rev (1m)0.78%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)18.25%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.66 | ||
| P/S | 11.32 | ||
| P/FCF | 40.13 | ||
| P/OCF | 30.24 | ||
| P/B | 13.37 | ||
| P/tB | 13.52 | ||
| EV/EBITDA | 20.04 |
EPS(TTM)4.69
EY2.75%
EPS(NY)5.56
Fwd EY3.26%
FCF(TTM)4.25
FCFY2.49%
OCF(TTM)5.64
OCFY3.31%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.56
PEG (5Y)1.88
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 | 10.87 |
F-Score7
WACC10.15%
ROIC/WACC2.04
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 Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year9.31%
Revenue Next 2Y7.84%
Revenue Next 3Y4.63%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year33.03%
EBIT Next 3Y12.68%
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.
What is the valuation status for SCCO stock?
ChartMill assigns a valuation rating of 3 / 10 to SOUTHERN COPPER CORP (SCCO). This can be considered as Overvalued.
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 36.36 and the Price/Book (PB) ratio is 13.37.
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.