SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
NYSE:SCCO - New York Stock Exchange, Inc. - US84265V1052 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 155 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making SCCO a very profitable company, without any liquidiy or solvency issues. SCCO has a correct valuation and a medium growth rate. 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.
In the past year SCCO had a positive cash flow from operations.
Each year in the past 5 years SCCO has been profitable.
Each year in the past 5 years SCCO had a positive operating cash flow.
1.2 Ratios
SCCO's Return On Assets of 18.12% is amongst the best of the industry. SCCO outperforms 96.77% of its industry peers.
SCCO's Return On Equity of 37.49% is amongst the best of the industry. SCCO outperforms 97.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.62%, SCCO belongs to the top of the industry, outperforming 98.06% of the companies in the same industry.
SCCO had an Average Return On Invested Capital over the past 3 years of 18.44%. This is significantly above the industry average of 11.61%.
The last Return On Invested Capital (20.62%) for SCCO is above the 3 year average (18.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 37.49% | ||
| ROIC | 20.62% |
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 (30.00%) than 94.19% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO has a better Operating Margin (49.35%) than 96.13% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
SCCO has a Gross Margin of 59.04%. This is amongst the best in the industry. SCCO outperforms 92.26% of its industry peers.
SCCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.35% | ||
| PM (TTM) | 30% | ||
| GM | 59.04% |
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.
SCCO has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SCCO has been reduced compared to a year ago.
2.2 Solvency
SCCO has an Altman-Z score of 7.18. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.18, SCCO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
SCCO has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as SCCO would need 2.16 years to pay back of all of its debts.
SCCO's Debt to FCF ratio of 2.16 is fine compared to the rest of the industry. SCCO outperforms 80.00% of its industry peers.
SCCO has a Debt/Equity ratio of 0.71. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
SCCO's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. SCCO is outperformed by 82.58% 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 | 0.71 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 7.18 |
ROIC/WACC2.13
WACC9.69%
2.3 Liquidity
A Current Ratio of 3.71 indicates that SCCO has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.71, SCCO is doing good in the industry, outperforming 73.55% of the companies in the same industry.
A Quick Ratio of 3.22 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a Quick ratio of 3.22. This is in the better half of the industry: SCCO outperforms 73.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.22 |
3. Growth
3.1 Past
SCCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.11%, which is quite impressive.
SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.35% yearly.
The Revenue has grown by 23.23% in the past year. This is a very strong growth!
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)54.11%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%28.93%
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
3.2 Future
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.73% yearly.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y8.98%
EPS Next 2Y3.66%
EPS Next 3Y4.73%
EPS Next 5YN/A
Revenue Next Year2.46%
Revenue Next 2Y0.43%
Revenue Next 3Y1.83%
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 22.53, SCCO is valued on the expensive side.
74.19% of the companies in the same industry are more expensive than SCCO, based on the Price/Earnings ratio.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 22.31, which indicates a rather expensive current valuation of SCCO.
SCCO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SCCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 63.87% of the companies in the same industry.
SCCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.37 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)1.16
EPS Next 2Y3.66%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.90, SCCO pays a better dividend. On top of this SCCO pays more dividend than 88.39% of the companies listed in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of SCCO has a limited annual growth rate of 5.77%.
SCCO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SCCO pays out 43.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
SCCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.83%
EPS Next 2Y3.66%
EPS Next 3Y4.73%
101.61
-0.65 (-0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.86%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change0.67%
Market Cap81.70B
Analysts53.75
Price Target92.51 (-8.96%)
Short Float %10.85%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend2.06
Dividend Growth(5Y)5.77%
DP43.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-2.17%
Max EPS beat(2)2.59%
EPS beat(4)2
Avg EPS beat(4)3.41%
Min EPS beat(4)-2.17%
Max EPS beat(4)13.47%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)7
Avg EPS beat(12)1.49%
EPS beat(16)8
Avg EPS beat(16)-0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)3.44%
Revenue beat(4)2
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)7.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.79%
Revenue beat(16)9
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)-4.18%
EPS NQ rev (1m)6.72%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)3.78%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)3.21%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 22.31 | ||
| P/S | 6.83 | ||
| P/FCF | 24.37 | ||
| P/OCF | 18.22 | ||
| P/B | 8.54 | ||
| P/tB | 8.65 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)4.51
EY4.44%
EPS(NY)4.55
Fwd EY4.48%
FCF(TTM)4.17
FCFY4.1%
OCF(TTM)5.58
OCFY5.49%
SpS14.87
BVpS11.9
TBVpS11.75
PEG (NY)2.51
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 37.49% | ||
| ROCE | 33.06% | ||
| ROIC | 20.62% | ||
| ROICexc | 27.23% | ||
| ROICexgc | 27.48% | ||
| OM | 49.35% | ||
| PM (TTM) | 30% | ||
| GM | 59.04% | ||
| FCFM | 28.04% |
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-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 131.44% | ||
| Cap/Sales | 9.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.31% | ||
| Profit Quality | 93.46% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.22 | ||
| Altman-Z | 7.18 |
F-Score8
WACC9.69%
ROIC/WACC2.13
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)54.11%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%28.93%
EPS Next Y8.98%
EPS Next 2Y3.66%
EPS Next 3Y4.73%
EPS Next 5YN/A
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
Revenue Next Year2.46%
Revenue Next 2Y0.43%
Revenue Next 3Y1.83%
Revenue Next 5Y5.1%
EBIT growth 1Y46.48%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year17.17%
EBIT Next 3Y8.97%
EBIT Next 5Y10.17%
FCF growth 1Y53.38%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y41.57%
OCF growth 3Y0.99%
OCF growth 5Y18.26%