SOUTHERN COPPER CORP (SCCO)
US84265V1052 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SCCO has a correct valuation and a medium growth rate. This makes SCCO very considerable 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.
In the past 5 years SCCO has always been profitable.
In the past 5 years SCCO always reported a positive cash flow from operatings.
1.2 Ratios
SCCO has a Return On Assets of 16.44%. This is amongst the best in the industry. SCCO outperforms 97.44% of its industry peers.
The Return On Equity of SCCO (33.94%) is better than 96.79% of its industry peers.
With an excellent Return On Invested Capital value of 19.49%, SCCO belongs to the best of the industry, outperforming 98.08% 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 8.89%.
The last Return On Invested Capital (19.49%) for SCCO is above the 3 year average (19.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 33.94% | ||
| ROIC | 19.49% |
ROA(3y)16.11%
ROA(5y)13.33%
ROE(3y)35.67%
ROE(5y)30.11%
ROIC(3y)19.18%
ROIC(5y)16.3%
1.3 Margins
With an excellent Profit Margin value of 27.67%, SCCO belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
SCCO's Profit Margin has improved in the last couple of years.
SCCO's Operating Margin of 46.74% is amongst the best of the industry. SCCO outperforms 96.15% of its industry peers.
SCCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of SCCO (57.11%) is better than 91.67% of its industry peers.
SCCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.74% | ||
| PM (TTM) | 27.67% | ||
| GM | 57.11% |
OM growth 3Y2.42%
OM growth 5Y0.85%
PM growth 3Y7.61%
PM growth 5Y2.42%
GM growth 3Y0.78%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SCCO is creating some value.
The number of shares outstanding for SCCO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SCCO has about the same amount of shares outstanding.
SCCO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.92 indicates that SCCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.92, SCCO is doing good in the industry, outperforming 78.85% of the companies in the same industry.
SCCO has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as SCCO would need 2.45 years to pay back of all of its debts.
SCCO has a better Debt to FCF ratio (2.45) than 75.64% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that 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: 82.05% of the companies in the same industry are doing better.
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 | 2.45 | ||
| Altman-Z | 6.92 |
ROIC/WACC1.79
WACC10.91%
2.3 Liquidity
SCCO has a Current Ratio of 2.77. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
SCCO has a Current ratio of 2.77. This is comparable to the rest of the industry: SCCO outperforms 58.97% of its industry peers.
A Quick Ratio of 2.31 indicates that SCCO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.31, SCCO is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
SCCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.99%.
SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.37% yearly.
Looking at the last year, SCCO shows a small growth in Revenue. The Revenue has grown by 5.03% in the last year.
The Revenue has been growing slightly by 6.88% on average over the past years.
EPS 1Y (TTM)4.99%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%46%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Sales Q2Q%16.97%
3.2 Future
Based on estimates for the next years, SCCO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.58% on average per year.
SCCO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.97% yearly.
EPS Next Y48.06%
EPS Next 2Y25%
EPS Next 3Y17.36%
EPS Next 5Y20.58%
Revenue Next Year15.18%
Revenue Next 2Y9.1%
Revenue Next 3Y7.31%
Revenue Next 5Y8.97%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SCCO is valuated rather expensively with a Price/Earnings ratio of 24.10.
62.82% of the companies in the same industry are more expensive than SCCO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.73. SCCO is around the same levels.
With a Price/Forward Earnings ratio of 19.32, SCCO is valued on the expensive side.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SCCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than the industry average as 68.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.6 | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of SCCO may justify a higher PE ratio.
SCCO's earnings are expected to grow with 17.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)2.57
EPS Next 2Y25%
EPS Next 3Y17.36%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.57%.
Compared to an average industry Dividend Yield of 3.13, SCCO pays a better dividend. On top of this SCCO pays more dividend than 83.97% of the companies listed in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
On average, the dividend of SCCO grows each year by 23.36%, which is quite nice.
SCCO has paid a dividend for at least 10 years, which is a reliable track record.
SCCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)23.36%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SCCO pays out 61.44% of its income as dividend. This is not a sustainable payout ratio.
SCCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.44%
EPS Next 2Y25%
EPS Next 3Y17.36%
SOUTHERN COPPER CORP
NYSE:SCCO (12/20/2024, 8:04:00 PM)
After market: 93.8999 +0.89 (+0.96%)93.01
+1.03 (+1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.25%
Inst Owner Change-2.2%
Ins Owners0.08%
Ins Owner Change0.41%
Market Cap73.06B
Analysts48.42
Price Target101.03 (8.62%)
Short Float %N/A
Short Ratio7.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Dividend Growth(5Y)23.36%
DP61.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.02%
Min EPS beat(2)0.52%
Max EPS beat(2)13.51%
EPS beat(4)3
Avg EPS beat(4)5.89%
Min EPS beat(4)-17.58%
Max EPS beat(4)27.12%
EPS beat(8)6
Avg EPS beat(8)6.35%
EPS beat(12)7
Avg EPS beat(12)0.2%
EPS beat(16)10
Avg EPS beat(16)0.59%
Revenue beat(2)1
Avg Revenue beat(2)2.86%
Min Revenue beat(2)-1.91%
Max Revenue beat(2)7.64%
Revenue beat(4)2
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)7.64%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)7
Avg Revenue beat(12)-0.73%
Revenue beat(16)10
Avg Revenue beat(16)0.16%
PT rev (1m)3.94%
PT rev (3m)1.75%
EPS NQ rev (1m)8.14%
EPS NQ rev (3m)8.14%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)8.48%
Revenue NQ rev (3m)8.48%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.1 | ||
| Fwd PE | 19.32 | ||
| P/S | 6.68 | ||
| P/FCF | 28.6 | ||
| P/OCF | 20.28 | ||
| P/B | 8.19 | ||
| P/tB | 8.31 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)3.86
EY4.15%
EPS(NY)4.82
Fwd EY5.18%
FCF(TTM)3.25
FCFY3.5%
OCF(TTM)4.59
OCFY4.93%
SpS13.93
BVpS11.36
TBVpS11.2
PEG (NY)0.5
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 33.94% | ||
| ROCE | 31.43% | ||
| ROIC | 19.49% | ||
| ROICexc | 23.85% | ||
| ROICexgc | 24.08% | ||
| OM | 46.74% | ||
| PM (TTM) | 27.67% | ||
| GM | 57.11% | ||
| FCFM | 23.34% |
ROA(3y)16.11%
ROA(5y)13.33%
ROE(3y)35.67%
ROE(5y)30.11%
ROIC(3y)19.18%
ROIC(5y)16.3%
ROICexc(3y)23.02%
ROICexc(5y)19.47%
ROICexgc(3y)23.26%
ROICexgc(5y)19.67%
ROCE(3y)30.93%
ROCE(5y)26.29%
ROICexcg growth 3Y8.27%
ROICexcg growth 5Y5.11%
ROICexc growth 3Y8.32%
ROICexc growth 5Y5.17%
OM growth 3Y2.42%
OM growth 5Y0.85%
PM growth 3Y7.61%
PM growth 5Y2.42%
GM growth 3Y0.78%
GM growth 5Y0.7%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 124.71% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.48% | ||
| Profit Quality | 84.38% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 6.92 |
F-Score5
WACC10.91%
ROIC/WACC1.79
Cap/Depr(3y)116.94%
Cap/Depr(5y)103.95%
Cap/Sales(3y)9.26%
Cap/Sales(5y)8.98%
Profit Quality(3y)92.03%
Profit Quality(5y)99.34%
High Growth Momentum
Growth
EPS 1Y (TTM)4.99%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%46%
EPS Next Y48.06%
EPS Next 2Y25%
EPS Next 3Y17.36%
EPS Next 5Y20.58%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Sales Q2Q%16.97%
Revenue Next Year15.18%
Revenue Next 2Y9.1%
Revenue Next 3Y7.31%
Revenue Next 5Y8.97%
EBIT growth 1Y9%
EBIT growth 3Y10.02%
EBIT growth 5Y7.79%
EBIT Next Year49.57%
EBIT Next 3Y17.31%
EBIT Next 5Y14.84%
FCF growth 1Y22.02%
FCF growth 3Y5.38%
FCF growth 5Y18.15%
OCF growth 1Y22.18%
OCF growth 3Y8.68%
OCF growth 5Y9.84%