SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
140.4 USD
-0.64 (-0.45%)
141.689 USD
+1.29 (+0.92%)
Taking everything into account, SCCO scores 7 out of 10 in our fundamental rating. SCCO was compared to 155 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. SCCO has a decent growth rate and is not valued too expensively. These ratings could make SCCO a good candidate 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
Looking at the Return On Assets, with a value of 18.79%, SCCO belongs to the top of the industry, outperforming 97.42% of the companies in the same industry.
SCCO has a Return On Equity of 36.56%. This is amongst the best in the industry. SCCO outperforms 97.42% of its industry peers.
With an excellent Return On Invested Capital value of 20.75%, SCCO belongs to the best of the industry, outperforming 95.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 13.15%.
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
Looking at the Profit Margin, with a value of 30.98%, SCCO belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
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 95.48% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SCCO is creating value.
The number of shares outstanding for SCCO remains at a similar level compared to 1 year ago.
SCCO has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.37 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO's Altman-Z score of 9.37 is fine compared to the rest of the industry. SCCO outperforms 74.19% 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.
With a decent Debt to FCF ratio value of 1.94, SCCO is doing good in the industry, outperforming 78.06% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a worse Debt to Equity ratio (0.65) than 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 | 9.37 |
ROIC/WACC2.02
WACC10.25%
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 Current ratio of 4.52. This is in the better half of the industry: SCCO outperforms 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.
Looking at the Quick ratio, with a value of 3.91, SCCO is in the better half of the industry, outperforming 74.19% 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 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.
SCCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.70%.
Measured over the past years, SCCO shows a quite strong growth in Revenue. The Revenue has been growing by 9.43% on average per year.
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
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
The Revenue is expected to grow by 5.10% on average over the next years.
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
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 29.94 indicates a quite expensive valuation of SCCO.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than 67.74% of the companies in the same industry.
SCCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.93, the valuation of SCCO can be described as expensive.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
SCCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.93 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 61.29% of the companies 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 74.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.04 | ||
| EV/EBITDA | 16.54 |
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)1.34
PEG (5Y)1.55
EPS Next 2Y14.08%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.17%.
Compared to an average industry Dividend Yield of 2.54, SCCO pays a better dividend. On top of this SCCO pays more dividend than 86.45% of the companies listed in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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.
SCCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.3%
EPS Next 2Y14.08%
EPS Next 3Y8.12%
140.4
-0.64 (-0.45%)
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 Cap115.00B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target130.55 (-7.02%)
Short Float %N/A
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)32.35%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)35.11%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)20.18%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 25.93 | ||
| P/S | 9.32 | ||
| P/FCF | 33.04 | ||
| P/OCF | 24.9 | ||
| P/B | 11.01 | ||
| P/tB | 11.13 | ||
| EV/EBITDA | 16.54 |
EPS(TTM)4.69
EY3.34%
EPS(NY)5.41
Fwd EY3.86%
FCF(TTM)4.25
FCFY3.03%
OCF(TTM)5.64
OCFY4.02%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.34
PEG (5Y)1.55
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 | 9.37 |
F-Score7
WACC10.25%
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 29.94 and the Price/Book (PB) ratio is 11.01.
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.