SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
184.3 USD
+7.89 (+4.47%)
185.1 USD
+0.8 (+0.43%)
SCCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. SCCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SCCO has a decent growth rate and is not valued too expensively. With these ratings, SCCO could be worth investigating further 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.
- In the past 5 years SCCO always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 18.79%, SCCO belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
- With an excellent Return On Equity value of 36.56%, SCCO belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
- SCCO's Return On Invested Capital of 20.75% is amongst the best of the industry. SCCO outperforms 94.23% 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 10.34%.
- 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
- With an excellent Profit Margin value of 30.98%, SCCO belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
- In the last couple of years the Profit Margin of SCCO has grown nicely.
- SCCO's Operating Margin of 50.25% is amongst the best of the industry. SCCO outperforms 95.51% of its industry peers.
- In the last couple of years the Operating Margin of SCCO has grown nicely.
- Looking at the Gross Margin, with a value of 59.57%, SCCO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- 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
- 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.
- SCCO has about the same amout of shares outstanding than it did 5 years ago.
- SCCO has a better debt/assets ratio than last year.
2.2 Solvency
- SCCO has an Altman-Z score of 11.16. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.16, SCCO is in the better half of the industry, outperforming 76.92% 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.
- SCCO has a Debt to FCF ratio of 1.94. This is in the better half of the industry: SCCO outperforms 78.21% of its industry peers.
- A Debt/Equity ratio of 0.65 indicates that 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 78.21% 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 | 11.16 |
ROIC/WACC2.01
WACC10.33%
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.
- SCCO has a Quick ratio of 3.91. This is in the better half of the industry: SCCO outperforms 75.00% of its industry peers.
| 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.
- Measured over the past years, SCCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.35% 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)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.
- The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y23.28%
EPS Next 2Y15.61%
EPS Next 3Y8.23%
EPS Next 5Y7.04%
Revenue Next Year11.54%
Revenue Next 2Y9.15%
Revenue Next 3Y5.23%
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.
- 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
- Based on the Price/Earnings ratio of 39.30, the valuation of SCCO can be described as expensive.
- 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.
- SCCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- SCCO is valuated quite expensively with a Price/Forward Earnings ratio of 33.14.
- SCCO's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (24.26), we can say SCCO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.3 | ||
| Fwd PE | 33.14 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are more expensive than SCCO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 76.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.37 | ||
| EV/EBITDA | 20.73 |
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)1.69
PEG (5Y)2.03
EPS Next 2Y15.61%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.72%, SCCO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.96, SCCO pays a better dividend. On top of this SCCO pays more dividend than 84.62% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SCCO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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%
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 39.3 and the Price/Book (PB) ratio is 14.45.
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.