SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
NYSE:SCCO - New York Stock Exchange, Inc. - US84265V1052 - Common Stock - Currency: USD
Taking everything into account, SCCO scores 7 out of 10 in our fundamental rating. SCCO was compared to 150 industry peers in the Metals & Mining industry. SCCO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SCCO has a decent growth rate and is not valued too expensively. This makes SCCO very considerable 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.
SCCO had positive earnings in each of the past 5 years.
Each year in the past 5 years SCCO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.44%, SCCO belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
The Return On Equity of SCCO (33.94%) is better than 97.18% of its industry peers.
SCCO has a better Return On Invested Capital (19.49%) than 98.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 8.67%.
The 3 year average ROIC (19.18%) for SCCO is below the current ROIC(19.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 33.94% | ||
| ROIC | 19.49% |
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
SCCO has a better Profit Margin (27.67%) than 95.77% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO has a better Operating Margin (46.74%) than 96.48% of its industry peers.
SCCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of SCCO (57.11%) is better than 91.55% of its industry peers.
In the last couple of years the Gross Margin of SCCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.74% | ||
| PM (TTM) | 27.67% | ||
| GM | 57.11% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SCCO is creating value.
Compared to 1 year ago, SCCO has about the same amount of shares outstanding.
Compared to 5 years ago, SCCO has about the same amount of shares outstanding.
The debt/assets ratio for SCCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.75 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO has a Altman-Z score of 6.75. This is amongst the best in the industry. SCCO outperforms 80.28% of its industry peers.
The Debt to FCF ratio of SCCO is 2.45, which is a good value as it means it would take SCCO, 2.45 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.45, SCCO is doing good in the industry, outperforming 78.87% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a Debt to Equity ratio of 0.65. This is amonst the worse of the industry: SCCO underperforms 82.39% 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 | 2.45 | ||
| Altman-Z | 6.75 |
ROIC/WACC1.92
WACC10.16%
2.3 Liquidity
A Current Ratio of 2.77 indicates that SCCO has no problem at all paying its short term obligations.
SCCO's Current ratio of 2.77 is fine compared to the rest of the industry. SCCO outperforms 61.97% of its industry peers.
SCCO has a Quick Ratio of 2.31. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.31, SCCO is doing good in the industry, outperforming 68.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
SCCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.08%.
Measured over the past years, SCCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.37% on average per year.
The Revenue has been growing slightly by 5.03% in the past year.
SCCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.88% yearly.
EPS 1Y (TTM)5.08%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%45.84%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Sales Q2Q%16.97%
3.2 Future
SCCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.77% yearly.
Based on estimates for the next years, SCCO will show a quite strong growth in Revenue. The Revenue will grow by 8.97% on average per year.
EPS Next Y45.24%
EPS Next 2Y23.42%
EPS Next 3Y15.65%
EPS Next 5Y20.77%
Revenue Next Year15.01%
Revenue Next 2Y8.69%
Revenue Next 3Y6.31%
Revenue Next 5Y8.97%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.58 indicates a rather expensive valuation of SCCO.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than 68.31% of the companies in the same industry.
SCCO is valuated rather cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.59, the valuation of SCCO can be described as rather expensive.
SCCO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (22.44), we can say SCCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCCO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 69.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.86 | ||
| EV/EBITDA | 12.31 |
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.
A more expensive valuation may be justified as SCCO's earnings are expected to grow with 15.65% in the coming years.
PEG (NY)0.5
PEG (5Y)2.41
EPS Next 2Y23.42%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.29%.
SCCO's Dividend Yield is a higher than the industry average which is at 3.21.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
On average, the dividend of SCCO grows each year by 23.36%, which is quite nice.
SCCO has been paying a dividend for at least 10 years, so it has 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
61.44% of the earnings are spent on dividend by SCCO. This is not a sustainable payout ratio.
SCCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.44%
EPS Next 2Y23.42%
EPS Next 3Y15.65%
86.71
-2.22 (-2.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.46%
Inst Owner Change4.57%
Ins Owners0.08%
Ins Owner Change0.73%
Market Cap68.61B
Analysts50
Price Target96.41 (11.19%)
Short Float %N/A
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend3.91
Dividend Growth(5Y)23.36%
DP61.44%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.62%
Min EPS beat(2)-0.23%
Max EPS beat(2)13.47%
EPS beat(4)2
Avg EPS beat(4)5.69%
Min EPS beat(4)-17.58%
Max EPS beat(4)27.12%
EPS beat(8)5
Avg EPS beat(8)6.25%
EPS beat(12)6
Avg EPS beat(12)0.13%
EPS beat(16)9
Avg EPS beat(16)0.54%
Revenue beat(2)1
Avg Revenue beat(2)2.86%
Min Revenue beat(2)-1.91%
Max Revenue beat(2)7.64%
Revenue beat(4)2
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)7.64%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)7
Avg Revenue beat(12)-0.73%
Revenue beat(16)10
Avg Revenue beat(16)0.16%
PT rev (1m)-2.55%
PT rev (3m)-2.3%
EPS NQ rev (1m)-1.68%
EPS NQ rev (3m)-16.11%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-3.47%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-7.63%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 18.59 | ||
| P/S | 6.27 | ||
| P/FCF | 26.86 | ||
| P/OCF | 19.05 | ||
| P/B | 7.69 | ||
| P/tB | 7.8 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)3.84
EY4.43%
EPS(NY)4.67
Fwd EY5.38%
FCF(TTM)3.23
FCFY3.72%
OCF(TTM)4.55
OCFY5.25%
SpS13.83
BVpS11.27
TBVpS11.12
PEG (NY)0.5
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.44% | ||
| ROE | 33.94% | ||
| ROCE | 31.43% | ||
| ROIC | 19.49% | ||
| ROICexc | 23.85% | ||
| ROICexgc | 24.08% | ||
| OM | 46.74% | ||
| PM (TTM) | 27.67% | ||
| GM | 57.11% | ||
| FCFM | 23.34% |
ROA(3y)16.11%
ROA(5y)13.33%
ROE(3y)35.67%
ROE(5y)30.11%
ROIC(3y)19.18%
ROIC(5y)16.3%
ROICexc(3y)23.02%
ROICexc(5y)19.47%
ROICexgc(3y)23.26%
ROICexgc(5y)19.67%
ROCE(3y)30.93%
ROCE(5y)26.29%
ROICexcg growth 3Y8.27%
ROICexcg growth 5Y5.11%
ROICexc growth 3Y8.32%
ROICexc growth 5Y5.17%
OM growth 3Y2.42%
OM growth 5Y0.85%
PM growth 3Y7.61%
PM growth 5Y2.42%
GM growth 3Y0.78%
GM growth 5Y0.7%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 124.71% | ||
| Cap/Sales | 9.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.48% | ||
| Profit Quality | 84.38% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 6.75 |
F-Score5
WACC10.16%
ROIC/WACC1.92
Cap/Depr(3y)116.94%
Cap/Depr(5y)103.95%
Cap/Sales(3y)9.26%
Cap/Sales(5y)8.98%
Profit Quality(3y)92.03%
Profit Quality(5y)99.34%
High Growth Momentum
Growth
EPS 1Y (TTM)5.08%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%45.84%
EPS Next Y45.24%
EPS Next 2Y23.42%
EPS Next 3Y15.65%
EPS Next 5Y20.77%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Sales Q2Q%16.97%
Revenue Next Year15.01%
Revenue Next 2Y8.69%
Revenue Next 3Y6.31%
Revenue Next 5Y8.97%
EBIT growth 1Y9%
EBIT growth 3Y10.02%
EBIT growth 5Y7.79%
EBIT Next Year47.22%
EBIT Next 3Y16.89%
EBIT Next 5Y14.84%
FCF growth 1Y22.02%
FCF growth 3Y5.38%
FCF growth 5Y18.15%
OCF growth 1Y22.18%
OCF growth 3Y8.68%
OCF growth 5Y9.84%