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. SCCO is valied quite expensively at the moment, while it does show a decent growth rate. This makes SCCO very considerable for quality investing!
1. Profitability
1.1 Basic Checks
SCCO had positive earnings in the past year.
In the past year SCCO had a positive cash flow from operations.
Each year in the past 5 years SCCO has been profitable.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.79%, SCCO belongs to the top of the industry, outperforming 97.45% of the companies in the same industry.
The Return On Equity of SCCO (36.56%) is better than 98.09% of its industry peers.
SCCO has a Return On Invested Capital of 20.75%. This is amongst the best in the industry. SCCO outperforms 94.90% 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 10.33%.
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 better Profit Margin (30.98%) than 94.27% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
The Operating Margin of SCCO (50.25%) is better than 95.54% of its industry peers.
In the last couple of years the Operating Margin of SCCO has grown nicely.
SCCO's Gross Margin of 59.57% is amongst the best of the industry. SCCO outperforms 91.72% of its industry peers.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| 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.
Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
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
SCCO has an Altman-Z score of 10.37. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SCCO (10.37) is better than 77.71% 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.
The Debt to FCF ratio of SCCO (1.94) is better than 78.98% 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 has a Debt to Equity ratio of 0.65. This is in the lower half of the industry: SCCO underperforms 78.98% of its industry peers.
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 | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 10.37 |
ROIC/WACC2.04
WACC10.15%
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 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.
SCCO has a Quick ratio of 3.91. This is in the better half of the industry: SCCO outperforms 75.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.06% 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 19.35% on average per year.
The Revenue has grown by 12.70% in the past year. This is quite good.
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
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.
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
Based on the Price/Earnings ratio of 36.36, the valuation of SCCO can be described as expensive.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than 66.88% of the companies 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.
SCCO is valuated quite expensively with a Price/Forward Earnings ratio of 30.66.
The rest of the industry has a similar Price/Forward Earnings ratio as SCCO.
SCCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 30.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCCO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 73.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.13 | ||
| EV/EBITDA | 18.89 |
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)1.56
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 0.99, SCCO pays a better dividend. On top of this SCCO pays more dividend than 85.99% of the companies listed in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| 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
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 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%
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)3.74%
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 | 18.89 |
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 | 10.37 |
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.