SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
143.47 USD
-2.01 (-1.38%)
143.94 USD
+0.47 (+0.33%)
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 156 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
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's Return On Assets of 18.79% is amongst the best of the industry. SCCO outperforms 98.08% of its industry peers.
SCCO's Return On Equity of 36.56% is amongst the best of the industry. SCCO outperforms 98.08% of its industry peers.
The Return On Invested Capital of SCCO (20.75%) is better than 94.87% of its industry peers.
SCCO had an Average Return On Invested Capital over the past 3 years of 18.44%. This is significantly above the industry average of 13.25%.
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
Looking at the Profit Margin, with a value of 30.98%, SCCO belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
SCCO's Profit Margin has improved in the last couple of years.
The Operating Margin of SCCO (50.25%) is better than 95.51% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
SCCO has a Gross Margin of 59.57%. This is amongst the best in the industry. SCCO outperforms 91.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO is creating value.
The number of shares outstanding for SCCO remains at a similar level compared to 1 year ago.
The number of shares outstanding for SCCO remains at a similar level compared to 5 years ago.
SCCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.52 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO has a Altman-Z score of 9.52. This is in the better half of the industry: SCCO outperforms 77.56% 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.
SCCO's Debt to FCF ratio of 1.94 is fine compared to the rest of the industry. SCCO outperforms 78.21% 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's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. SCCO is outperformed by 79.49% 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 | 9.52 |
ROIC/WACC2.05
WACC10.12%
2.3 Liquidity
A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
SCCO's Current ratio of 4.52 is fine compared to the rest of the industry. SCCO outperforms 78.21% 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.
With a decent Quick ratio value of 3.91, SCCO is doing good in the industry, outperforming 75.00% 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.
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 12.70% in the past year. This is quite good.
The Revenue has been growing by 9.43% on average over the past years. This is quite good.
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
Based on estimates for the next years, SCCO will show a small growth in Earnings Per Share. The EPS will grow by 7.04% on average per year.
Based on estimates for the next years, SCCO will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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
SCCO is valuated quite expensively with a Price/Earnings ratio of 30.59.
Compared to the rest of the industry, the Price/Earnings ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 69.87% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. SCCO is around the same levels.
A Price/Forward Earnings ratio of 25.80 indicates a quite expensive valuation of SCCO.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. SCCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
60.90% of the companies in the same industry are more expensive than SCCO, based on the Enterprise Value to EBITDA ratio.
75.00% of the companies in the same industry are more expensive than SCCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.77 | ||
| EV/EBITDA | 16.9 |
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)1.31
PEG (5Y)1.58
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 0.98. SCCO pays more dividend than 85.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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 2Y15.61%
EPS Next 3Y8.23%
143.47
-2.01 (-1.38%)
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 Cap117.52B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target134.67 (-6.13%)
Short Float %9.98%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)36.78%
EPS NQ rev (1m)3.76%
EPS NQ rev (3m)33.23%
EPS NY rev (1m)0.11%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)21.18%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.59 | ||
| Fwd PE | 25.8 | ||
| P/S | 9.53 | ||
| P/FCF | 33.77 | ||
| P/OCF | 25.45 | ||
| P/B | 11.25 | ||
| P/tB | 11.38 | ||
| EV/EBITDA | 16.9 |
EPS(TTM)4.69
EY3.27%
EPS(NY)5.56
Fwd EY3.88%
FCF(TTM)4.25
FCFY2.96%
OCF(TTM)5.64
OCFY3.93%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.31
PEG (5Y)1.58
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 | 9.52 |
F-Score7
WACC10.12%
ROIC/WACC2.05
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 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.
Can you provide the PE and PB ratios for SCCO stock?
The Price/Earnings (PE) ratio for SOUTHERN COPPER CORP (SCCO) is 30.59 and the Price/Book (PB) ratio is 11.25.
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.