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 152 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. These ratings would make SCCO suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SCCO was profitable.
SCCO had a positive operating cash flow in the past year.
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
The Return On Assets of SCCO (16.44%) is better than 97.24% of its industry peers.
With an excellent Return On Equity value of 33.94%, SCCO belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
SCCO's Return On Invested Capital of 19.49% is amongst the best of the industry. SCCO outperforms 97.93% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 8.75%.
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 95.17% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
Looking at the Operating Margin, with a value of 46.74%, SCCO belongs to the top of the industry, outperforming 95.86% of the companies in the same industry.
SCCO's Operating Margin has been stable in the last couple of years.
The Gross Margin of SCCO (57.11%) is better than 91.03% of its industry peers.
SCCO's Gross Margin has been stable in the last couple of years.
| 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.
SCCO has about the same amout of shares outstanding than it did 5 years ago.
SCCO has a worse debt/assets ratio than last year.
2.2 Solvency
SCCO has an Altman-Z score of 6.84. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO has a better Altman-Z score (6.84) than 79.31% of its industry peers.
SCCO has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as SCCO would need 2.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.45, SCCO is doing good in the industry, outperforming 77.24% 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 82.76% of the companies in the same industry.
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 | 6.84 |
ROIC/WACC1.82
WACC10.71%
2.3 Liquidity
SCCO has a Current Ratio of 2.77. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.77, SCCO is doing good in the industry, outperforming 60.69% of the companies in the same industry.
A Quick Ratio of 2.31 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a better Quick ratio (2.31) than 67.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.55% 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 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)5.55%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%46.91%
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 Y48.47%
EPS Next 2Y25.66%
EPS Next 3Y17.52%
EPS Next 5Y20.77%
Revenue Next Year15.86%
Revenue Next 2Y9.5%
Revenue Next 3Y7.39%
Revenue Next 5Y8.97%
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 accelerating.
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
SCCO is valuated rather expensively with a Price/Earnings ratio of 23.73.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 18.89 indicates a rather expensive valuation of SCCO.
The rest of the industry has a similar Price/Forward Earnings ratio as SCCO.
The average S&P500 Price/Forward Earnings ratio is at 91.29. SCCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 18.89 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 69.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.09 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
The 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 17.52% in the coming years.
PEG (NY)0.49
PEG (5Y)2.53
EPS Next 2Y25.66%
EPS Next 3Y17.52%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.44%. 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 3.17. SCCO pays more dividend than 84.14% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
The dividend of SCCO is nicely growing with an annual growth rate of 23.36%!
SCCO has paid a dividend for at least 10 years, which is 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
SCCO pays out 61.44% of its income as dividend. 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 2Y25.66%
EPS Next 3Y17.52%
SOUTHERN COPPER CORP
NYSE:SCCO (1/29/2025, 8:04:00 PM)
After market: 91.99 +0.62 (+0.68%)91.37
+0.85 (+0.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.25%
Inst Owner Change0.2%
Ins Owners0.08%
Ins Owner Change0.23%
Market Cap71.77B
Analysts50.53
Price Target100.69 (10.2%)
Short Float %7.48%
Short Ratio7.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend3.96
Dividend Growth(5Y)23.36%
DP61.44%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.06%
Min EPS beat(2)-1.4%
Max EPS beat(2)13.51%
EPS beat(4)2
Avg EPS beat(4)5.41%
Min EPS beat(4)-17.58%
Max EPS beat(4)27.12%
EPS beat(8)5
Avg EPS beat(8)6.11%
EPS beat(12)6
Avg EPS beat(12)0.04%
EPS beat(16)9
Avg EPS beat(16)0.47%
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)-0.34%
PT rev (3m)3.59%
EPS NQ rev (1m)-8.34%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.9%
Revenue NQ rev (1m)-4.86%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 18.89 | ||
| P/S | 6.56 | ||
| P/FCF | 28.09 | ||
| P/OCF | 19.93 | ||
| P/B | 8.05 | ||
| P/tB | 8.16 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)3.85
EY4.21%
EPS(NY)4.84
Fwd EY5.29%
FCF(TTM)3.25
FCFY3.56%
OCF(TTM)4.59
OCFY5.02%
SpS13.93
BVpS11.36
TBVpS11.2
PEG (NY)0.49
PEG (5Y)2.53
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 | 6.84 |
F-Score5
WACC10.71%
ROIC/WACC1.82
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)5.55%
EPS 3Y15.53%
EPS 5Y9.37%
EPS Q2Q%46.91%
EPS Next Y48.47%
EPS Next 2Y25.66%
EPS Next 3Y17.52%
EPS Next 5Y20.77%
Revenue 1Y (TTM)5.03%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Sales Q2Q%16.97%
Revenue Next Year15.86%
Revenue Next 2Y9.5%
Revenue Next 3Y7.39%
Revenue Next 5Y8.97%
EBIT growth 1Y9%
EBIT growth 3Y10.02%
EBIT growth 5Y7.79%
EBIT Next Year48.03%
EBIT Next 3Y16.77%
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%