SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
128.37 USD
+1.45 (+1.14%)
128.95 USD
+0.58 (+0.45%)
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. This makes SCCO very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SCCO was profitable.
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
The Return On Assets of SCCO (18.46%) is better than 98.06% of its industry peers.
SCCO has a Return On Equity of 36.15%. This is amongst the best in the industry. SCCO outperforms 97.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.12%, SCCO belongs to the top of the industry, outperforming 96.77% 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 12.31%.
The last Return On Invested Capital (20.12%) for SCCO is above the 3 year average (18.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.46% | ||
| ROE | 36.15% | ||
| ROIC | 20.12% |
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 (30.37%) than 93.55% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO has a Operating Margin of 49.46%. This is amongst the best in the industry. SCCO outperforms 95.48% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
The Gross Margin of SCCO (59.20%) is better than 91.61% of its industry peers.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.46% | ||
| PM (TTM) | 30.37% | ||
| GM | 59.2% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
SCCO has an Altman-Z score of 8.87. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO has a Altman-Z score of 8.87. This is in the better half of the industry: SCCO outperforms 76.13% of its industry peers.
SCCO has a debt to FCF ratio of 1.95. This is a very positive value and a sign of high solvency as it would only need 1.95 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.95, SCCO belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a Debt to Equity ratio of 0.68. This is amonst the worse of the industry: SCCO underperforms 81.94% 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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 8.87 |
ROIC/WACC2.29
WACC8.79%
2.3 Liquidity
SCCO has a Current Ratio of 5.27. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCCO (5.27) is better than 81.29% of its industry peers.
SCCO has a Quick Ratio of 4.51. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SCCO (4.51) is better than 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.27 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.66% over the past year.
The Earnings Per Share has been growing by 19.16% on average over the past years. This is quite good.
The Revenue has grown by 13.01% 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)31.66%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%2.93%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
3.2 Future
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.81% yearly.
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 Y17.86%
EPS Next 2Y10.06%
EPS Next 3Y6.52%
EPS Next 5Y6.81%
Revenue Next Year6.35%
Revenue Next 2Y4.61%
Revenue Next 3Y3.21%
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 28.53, the valuation of SCCO can be described as expensive.
69.68% 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 27.67.
Based on the Price/Forward Earnings ratio of 25.20, the valuation of SCCO can be described as expensive.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
SCCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 61.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 76.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.11 | ||
| EV/EBITDA | 15.6 |
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)1.6
PEG (5Y)1.49
EPS Next 2Y10.06%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, SCCO pays a better dividend. On top of this SCCO pays more dividend than 87.74% 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 | 2.08% |
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
58.99% of the earnings are spent on dividend by SCCO. This is a bit on the high side, but may be sustainable.
SCCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP58.99%
EPS Next 2Y10.06%
EPS Next 3Y6.52%
128.37
+1.45 (+1.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change0.03%
Ins Owners0.07%
Ins Owner Change0.06%
Market Cap104.25B
Revenue(TTM)11.89B
Net Income(TTM)3.61B
Analysts52
Price Target101.14 (-21.21%)
Short Float %N/A
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend2.06
Dividend Growth(5Y)5.77%
DP58.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.65%
Min EPS beat(2)2.59%
Max EPS beat(2)4.7%
EPS beat(4)2
Avg EPS beat(4)1.22%
Min EPS beat(4)-2.17%
Max EPS beat(4)4.7%
EPS beat(8)5
Avg EPS beat(8)4.27%
EPS beat(12)8
Avg EPS beat(12)5.48%
EPS beat(16)8
Avg EPS beat(16)-0.04%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)3.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)3.44%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.09%
Revenue beat(16)8
Avg Revenue beat(16)-0.99%
PT rev (1m)2.72%
PT rev (3m)5.09%
EPS NQ rev (1m)10.81%
EPS NQ rev (3m)13.02%
EPS NY rev (1m)0.98%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)6.88%
Revenue NQ rev (3m)6.27%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.2 | ||
| P/S | 8.77 | ||
| P/FCF | 30.11 | ||
| P/OCF | 23.18 | ||
| P/B | 10.44 | ||
| P/tB | 10.57 | ||
| EV/EBITDA | 15.6 |
EPS(TTM)4.5
EY3.51%
EPS(NY)5.09
Fwd EY3.97%
FCF(TTM)4.26
FCFY3.32%
OCF(TTM)5.54
OCFY4.31%
SpS14.64
BVpS12.29
TBVpS12.14
PEG (NY)1.6
PEG (5Y)1.49
Graham Number35.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.46% | ||
| ROE | 36.15% | ||
| ROCE | 32.26% | ||
| ROIC | 20.12% | ||
| ROICexc | 25.8% | ||
| ROICexgc | 26.02% | ||
| OM | 49.46% | ||
| PM (TTM) | 30.37% | ||
| GM | 59.2% | ||
| FCFM | 29.13% |
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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 120.75% | ||
| Cap/Sales | 8.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.76% | ||
| Profit Quality | 95.93% | ||
| Current Ratio | 5.27 | ||
| Quick Ratio | 4.51 | ||
| Altman-Z | 8.87 |
F-Score7
WACC8.79%
ROIC/WACC2.29
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)31.66%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%2.93%
EPS Next Y17.86%
EPS Next 2Y10.06%
EPS Next 3Y6.52%
EPS Next 5Y6.81%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
Revenue Next Year6.35%
Revenue Next 2Y4.61%
Revenue Next 3Y3.21%
Revenue Next 5Y5.1%
EBIT growth 1Y24.19%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.69%
EBIT Next 3Y7.9%
EBIT Next 5Y10.17%
FCF growth 1Y30.93%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y23.09%
OCF growth 3Y0.99%
OCF growth 5Y18.26%