SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
160.08 USD
+5.69 (+3.69%)
157.96 USD
-2.12 (-1.32%)
Overall SCCO gets a fundamental rating of 7 out of 10. We evaluated SCCO against 157 industry peers in the Metals & Mining industry. SCCO gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, SCCO is valued expensive at the moment. With these ratings, SCCO could be worth investigating further 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
Looking at the Return On Assets, with a value of 18.79%, SCCO belongs to the top of the industry, outperforming 97.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.56%, SCCO belongs to the top of the industry, outperforming 98.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.75%, SCCO belongs to the top of the industry, outperforming 94.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 10.33%.
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
SCCO has a better Profit Margin (30.98%) than 94.27% 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 50.25%, SCCO belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
SCCO's Operating Margin has improved in the last couple of years.
SCCO's Gross Margin of 59.57% is amongst the best of the industry. SCCO outperforms 91.72% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO is creating 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.35 indicates that SCCO is not in any danger for bankruptcy at the moment.
The Altman-Z score of SCCO (10.35) is better than 77.71% 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 has a better Debt to FCF ratio (1.94) than 78.98% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that SCCO is somewhat dependend on debt financing.
The Debt to Equity ratio of SCCO (0.65) is worse than 78.98% of its industry peers.
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 | 10.35 |
ROIC/WACC2.05
WACC10.14%
2.3 Liquidity
SCCO has a Current Ratio of 4.52. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCCO (4.52) is better than 78.34% of its industry peers.
A Quick Ratio of 3.91 indicates that SCCO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.91, SCCO is in the better half of the industry, outperforming 75.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.06% over the past year.
The Earnings Per Share has been growing by 19.35% on average over the past years. This is quite good.
The Revenue has grown by 12.70% in the past year. This is quite good.
Measured over the past years, SCCO shows a quite strong growth in Revenue. The Revenue has been growing by 9.43% on average per year.
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
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.04% 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 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.
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 34.13, which means the current valuation is very expensive for SCCO.
68.15% of the companies in the same industry are more expensive than SCCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SCCO to the average of the S&P500 Index (27.17), we can say SCCO is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.78, SCCO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as SCCO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, SCCO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 28.78 |
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.
74.52% 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 | 37.67 | ||
| EV/EBITDA | 18.83 |
4.3 Compensation for Growth
SCCO's 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)1.47
PEG (5Y)1.76
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.12%.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 0.99. SCCO pays more dividend than 85.99% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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.
The dividend of SCCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.3%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
160.08
+5.69 (+3.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.48%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap131.12B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target134.67 (-15.87%)
Short Float %9.98%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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)33.15%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)33.38%
EPS NY rev (1m)0.78%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)18.25%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 28.78 | ||
| P/S | 10.63 | ||
| P/FCF | 37.67 | ||
| P/OCF | 28.39 | ||
| P/B | 12.55 | ||
| P/tB | 12.69 | ||
| EV/EBITDA | 18.83 |
EPS(TTM)4.69
EY2.93%
EPS(NY)5.56
Fwd EY3.47%
FCF(TTM)4.25
FCFY2.65%
OCF(TTM)5.64
OCFY3.52%
SpS15.06
BVpS12.76
TBVpS12.61
PEG (NY)1.47
PEG (5Y)1.76
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 | 10.35 |
F-Score7
WACC10.14%
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 3 / 10 to SOUTHERN COPPER CORP (SCCO). This can be considered as Overvalued.
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 34.13 and the Price/Book (PB) ratio is 12.55.
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.