SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
124.14 USD
-2.91 (-2.29%)
123.7 USD
-0.44 (-0.35%)
SCCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. SCCO gets an excellent profitability rating and is at the same time showing great financial health properties. SCCO is not valued too expensively and it also shows a decent growth rate. These ratings would make SCCO suitable 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.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SCCO (18.79%) is better than 98.05% of its industry peers.
Looking at the Return On Equity, with a value of 36.56%, SCCO belongs to the top of the industry, outperforming 98.05% of the companies in the same industry.
The Return On Invested Capital of SCCO (20.75%) is better than 96.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 12.85%.
The 3 year average ROIC (18.44%) for SCCO is below the current ROIC(20.75%), indicating increased profibility in the last year.
| 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
SCCO has a better Profit Margin (30.98%) than 94.16% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
The Operating Margin of SCCO (50.25%) is better than 95.45% 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 91.56% of its industry peers.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| 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
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.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.51 indicates that SCCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.51, SCCO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Debt to FCF ratio of SCCO is 1.94, which is an excellent value as it means it would take SCCO, only 1.94 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.94, SCCO is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
SCCO has a Debt/Equity ratio of 0.65. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, SCCO is doing worse than 82.47% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for SCCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 8.51 |
ROIC/WACC2.21
WACC9.38%
2.3 Liquidity
A Current Ratio of 4.52 indicates that SCCO has no problem at all paying its short term obligations.
The Current ratio of SCCO (4.52) is better than 77.27% 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 75.32% 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 25.56%, which is quite impressive.
Measured over the past years, SCCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.16% on average per year.
SCCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.70%.
SCCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.43% yearly.
EPS 1Y (TTM)25.56%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%20.63%
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 6.81% on average per year.
SCCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
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
The Price/Earnings ratio is 26.25, which means the current valuation is very expensive for SCCO.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 68.83% of the companies are valued more expensively.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 22.82 indicates a rather expensive valuation of SCCO.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
SCCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
61.04% of the companies in the same industry are more expensive than SCCO, based on the Enterprise Value to EBITDA ratio.
75.32% 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 | 28.97 | ||
| EV/EBITDA | 14.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of SCCO may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)1.37
EPS Next 2Y13.74%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.30%. 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 2.63. SCCO pays more dividend than 87.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.3%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
124.14
-2.91 (-2.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change2.6%
Ins Owners0.07%
Ins Owner Change0.59%
Market Cap100.82B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target116.38 (-6.25%)
Short Float %10.58%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend2.04
Dividend Growth(5Y)5.77%
DP60.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)15.06%
PT rev (3m)16.49%
EPS NQ rev (1m)11.29%
EPS NQ rev (3m)30.23%
EPS NY rev (1m)8.19%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)6.45%
Revenue NQ rev (3m)16.3%
Revenue NY rev (1m)3.78%
Revenue NY rev (3m)4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 22.82 | ||
| P/S | 8.17 | ||
| P/FCF | 28.97 | ||
| P/OCF | 21.83 | ||
| P/B | 9.65 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 14.53 |
EPS(TTM)4.73
EY3.81%
EPS(NY)5.44
Fwd EY4.38%
FCF(TTM)4.29
FCFY3.45%
OCF(TTM)5.69
OCFY4.58%
SpS15.19
BVpS12.87
TBVpS12.72
PEG (NY)1.2
PEG (5Y)1.37
Graham Number37.01
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 | 8.51 |
F-Score7
WACC9.38%
ROIC/WACC2.21
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)25.56%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%20.63%
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.69%
EBIT Next 3Y7.9%
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.
Can you provide the valuation status for SOUTHERN COPPER CORP?
ChartMill assigns a valuation rating of 5 / 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.
What is the valuation of SOUTHERN COPPER CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SOUTHERN COPPER CORP (SCCO) is 26.25 and the Price/Book (PB) ratio is 9.65.
What is the earnings growth outlook for SOUTHERN COPPER CORP?
The Earnings per Share (EPS) of SOUTHERN COPPER CORP (SCCO) is expected to grow by 21.84% in the next year.