SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
137.24 USD
+1.32 (+0.97%)
137.98 USD
+0.74 (+0.54%)
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 has a correct valuation and a medium growth rate. These ratings would make SCCO suitable for quality investing!
1. Profitability
1.1 Basic Checks
SCCO had positive earnings in the past year.
SCCO had a positive operating cash flow in the past year.
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
SCCO's Return On Assets of 18.46% is amongst the best of the industry. SCCO outperforms 98.05% of its industry peers.
SCCO has a better Return On Equity (36.15%) than 97.40% 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 96.75% 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 12.58%.
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
With an excellent Profit Margin value of 30.37%, SCCO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
SCCO's Profit Margin has improved in the last couple of years.
The Operating Margin of SCCO (49.46%) is better than 94.81% 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 59.20%, SCCO belongs to the top of the industry, outperforming 91.56% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SCCO is creating value.
The number of shares outstanding for SCCO remains at a similar level compared to 1 year ago.
The number of shares outstanding for SCCO remains at a similar level compared to 5 years ago.
SCCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.40 indicates that SCCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 9.40, SCCO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
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 82.47% of the companies in the same industry.
SCCO has a Debt/Equity ratio of 0.68. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
SCCO has a worse Debt to Equity ratio (0.68) than 81.82% 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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 9.4 |
ROIC/WACC2.2
WACC9.13%
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 81.17% 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.
With a decent Quick ratio value of 4.51, SCCO is doing good in the industry, outperforming 77.92% of the companies in the same industry.
| 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.
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.
Looking at the last year, SCCO shows a quite strong growth in Revenue. The Revenue has grown by 13.01% in the last year.
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)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
The Earnings Per Share is expected to grow by 6.81% on average over the next years.
The Revenue is expected to grow by 5.10% on average over the next years.
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.
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
A Price/Earnings ratio of 30.50 indicates a quite expensive valuation of SCCO.
SCCO's Price/Earnings ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 65.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, SCCO is valued at the same level.
A Price/Forward Earnings ratio of 26.94 indicates a quite expensive valuation of SCCO.
SCCO's Price/Forward Earnings is on the same level as the industry average.
SCCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 26.94 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 73.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.19 | ||
| EV/EBITDA | 16.85 |
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)1.71
PEG (5Y)1.59
EPS Next 2Y10.06%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, SCCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.64, SCCO pays a better dividend. On top of this SCCO pays more dividend than 87.01% of the companies listed in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
SCCO pays out 58.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SCCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP58.99%
EPS Next 2Y10.06%
EPS Next 3Y6.52%
137.24
+1.32 (+0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change-0.34%
Ins Owners0.07%
Ins Owner Change0.06%
Market Cap111.46B
Revenue(TTM)11.89B
Net Income(TTM)3.61B
Analysts52
Price Target116.38 (-15.2%)
Short Float %11.42%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend2.04
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)18.2%
PT rev (3m)20.92%
EPS NQ rev (1m)10.4%
EPS NQ rev (3m)15.42%
EPS NY rev (1m)4.65%
EPS NY rev (3m)7.3%
Revenue NQ rev (1m)2.51%
Revenue NQ rev (3m)5.25%
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)3.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.5 | ||
| Fwd PE | 26.94 | ||
| P/S | 9.38 | ||
| P/FCF | 32.19 | ||
| P/OCF | 24.78 | ||
| P/B | 11.16 | ||
| P/tB | 11.3 | ||
| EV/EBITDA | 16.85 |
EPS(TTM)4.5
EY3.28%
EPS(NY)5.09
Fwd EY3.71%
FCF(TTM)4.26
FCFY3.11%
OCF(TTM)5.54
OCFY4.04%
SpS14.64
BVpS12.29
TBVpS12.14
PEG (NY)1.71
PEG (5Y)1.59
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 | 9.4 |
F-Score7
WACC9.13%
ROIC/WACC2.2
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%
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 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.
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 30.5 and the Price/Book (PB) ratio is 11.16.
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 17.86% in the next year.