SOUTHERN COPPER CORP (SCCO)
US84265V1052 - Common Stock
Overall SCCO gets a fundamental rating of 6 out of 10. We evaluated SCCO against 157 industry peers in the Metals & Mining industry. While SCCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SCCO is not valued too expensively and it also shows a decent growth rate.
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.
SCCO had positive earnings in each of the past 5 years.
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 15.47%, SCCO belongs to the top of the industry, outperforming 94.90% of the companies in the same industry.
The Return On Equity of SCCO (32.39%) is better than 96.82% of its industry peers.
SCCO has a Return On Invested Capital of 18.49%. This is amongst the best in the industry. SCCO outperforms 96.82% of its industry peers.
SCCO had an Average Return On Invested Capital over the past 3 years of 19.18%. This is significantly above the industry average of 8.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.47% | ||
| ROE | 32.39% | ||
| ROIC | 18.49% |
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
The Profit Margin of SCCO (26.15%) is better than 95.54% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
With an excellent Operating Margin value of 45.01%, SCCO belongs to the best of the industry, outperforming 96.18% of the companies in the same industry.
SCCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of SCCO (55.83%) is better than 91.72% of its industry peers.
SCCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.01% | ||
| PM (TTM) | 26.15% | ||
| GM | 55.83% |
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
SCCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
The number of shares outstanding for SCCO remains at a similar level compared to 5 years ago.
The debt/assets ratio for SCCO is higher compared to a year ago.
2.2 Solvency
SCCO has an Altman-Z score of 7.50. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SCCO (7.50) is better than 79.62% of its industry peers.
The Debt to FCF ratio of SCCO is 2.91, which is a good value as it means it would take SCCO, 2.91 years of fcf income to pay off all of its debts.
SCCO has a Debt to FCF ratio of 2.91. This is in the better half of the industry: SCCO outperforms 77.71% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a worse Debt to Equity ratio (0.68) than 82.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 7.5 |
ROIC/WACC1.71
WACC10.82%
2.3 Liquidity
SCCO has a Current Ratio of 2.81. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
SCCO has a Current ratio (2.81) which is in line with its industry peers.
SCCO has a Quick Ratio of 2.27. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.27, SCCO is doing good in the industry, outperforming 63.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.99% over the past year.
The Earnings Per Share has been growing by 9.37% on average over the past years. This is quite good.
The Revenue has decreased by -1.51% in the past year.
Measured over the past years, SCCO shows a small growth in Revenue. The Revenue has been growing by 6.88% on average per year.
EPS 1Y (TTM)4.99%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%46%
Revenue 1Y (TTM)-1.51%
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 20.94% on average per year.
The Revenue is expected to grow by 4.42% on average over the next years.
EPS Next Y49.53%
EPS Next 2Y26.21%
EPS Next 3Y16.93%
EPS Next 5Y20.94%
Revenue Next Year15.73%
Revenue Next 2Y9.4%
Revenue Next 3Y7.15%
Revenue Next 5Y4.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 26.08, the valuation of SCCO can be described as expensive.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 62.42% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. SCCO is around the same levels.
A Price/Forward Earnings ratio of 20.51 indicates a rather expensive valuation of SCCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCCO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SCCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 20.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCCO.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than the industry average as 70.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.8 | ||
| EV/EBITDA | 15.18 |
4.3 Compensation for Growth
SCCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
SCCO's earnings are expected to grow with 16.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)2.78
EPS Next 2Y26.21%
EPS Next 3Y16.93%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.36%.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 2.98. SCCO pays more dividend than 82.80% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
78.70% of the earnings are spent on dividend by SCCO. This is not a sustainable payout ratio.
The dividend of SCCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.7%
EPS Next 2Y26.21%
EPS Next 3Y16.93%
SOUTHERN COPPER CORP
NYSE:SCCO (11/21/2024, 8:04:00 PM)
After market: 100.24 -0.44 (-0.44%)100.68
-2.32 (-2.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap79.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.08 | ||
| Fwd PE | 20.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.53
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.47% | ||
| ROE | 32.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.01% | ||
| PM (TTM) | 26.15% | ||
| GM | 55.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.27 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.99%
EPS 3Y15.53%
EPS 5Y
EPS Q2Q%
EPS Next Y49.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y7.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y