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 154 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make SCCO a good candidate 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.
In the past 5 years SCCO has always been profitable.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCCO has a better Return On Assets (18.12%) than 96.75% of its industry peers.
SCCO has a better Return On Equity (37.49%) than 96.75% of its industry peers.
SCCO has a Return On Invested Capital of 20.62%. This is amongst the best in the industry. SCCO outperforms 97.40% of its industry peers.
SCCO had an Average Return On Invested Capital over the past 3 years of 18.44%. This is significantly above the industry average of 8.82%.
The last Return On Invested Capital (20.62%) for SCCO is above the 3 year average (18.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 37.49% | ||
| ROIC | 20.62% |
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's Profit Margin of 30.00% is amongst the best of the industry. SCCO outperforms 96.10% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
The Operating Margin of SCCO (49.35%) is better than 96.75% of its industry peers.
SCCO's Operating Margin has improved in the last couple of years.
The Gross Margin of SCCO (59.04%) is better than 92.21% of its industry peers.
In the last couple of years the Gross Margin of SCCO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.35% | ||
| PM (TTM) | 30% | ||
| GM | 59.04% |
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
SCCO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SCCO has about the same amout of shares outstanding than it did 1 year ago.
SCCO has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
SCCO has an Altman-Z score of 6.61. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO has a Altman-Z score of 6.61. This is in the better half of the industry: SCCO outperforms 78.57% of its industry peers.
SCCO has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as SCCO would need 2.16 years to pay back of all of its debts.
The Debt to FCF ratio of SCCO (2.16) is better than 80.52% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that SCCO is somewhat dependend on debt financing.
SCCO's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. SCCO is outperformed by 81.82% 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 | 0.71 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 6.61 |
ROIC/WACC2.07
WACC9.97%
2.3 Liquidity
A Current Ratio of 3.71 indicates that SCCO has no problem at all paying its short term obligations.
The Current ratio of SCCO (3.71) is better than 73.38% of its industry peers.
SCCO has a Quick Ratio of 3.22. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.22, SCCO is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.79% over the past year.
SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.35% yearly.
Looking at the last year, SCCO shows a very strong growth in Revenue. The Revenue has grown by 23.23%.
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)40.79%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%29.74%
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
3.2 Future
SCCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.34% yearly.
Based on estimates for the next years, SCCO will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y5.54%
EPS Next 2Y3.24%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue Next Year1.1%
Revenue Next 2Y0.67%
Revenue Next 3Y1.48%
Revenue Next 5Y5.76%
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
With a Price/Earnings ratio of 21.78, SCCO is valued on the expensive side.
72.73% of the companies in the same industry are more expensive than SCCO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SCCO is valued at the same level.
A Price/Forward Earnings ratio of 20.44 indicates a rather expensive valuation of SCCO.
SCCO's Price/Forward Earnings is on the same level as the industry average.
SCCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 20.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 61.69% of the companies listed in the same industry.
77.92% 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 | 21.93 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SCCO does not grow enough to justify the current Price/Earnings ratio.
SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.93
PEG (5Y)1.13
EPS Next 2Y3.24%
EPS Next 3Y3.34%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.90%.
Compared to an average industry Dividend Yield of 3.00, 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 a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of SCCO has a limited annual growth rate of 5.77%.
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)5.77%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SCCO pays out 43.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
SCCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.83%
EPS Next 2Y3.24%
EPS Next 3Y3.34%
92.34
+1.92 (+2.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.46%
Inst Owner Change3.22%
Ins Owners0.08%
Ins Owner Change0.71%
Market Cap73.52B
Analysts52.22
Price Target92.8 (0.5%)
Short Float %N/A
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend2.06
Dividend Growth(5Y)5.77%
DP43.83%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)2.16%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)7.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)-0.52%
PT rev (1m)-3.89%
PT rev (3m)-6.21%
EPS NQ rev (1m)-4.83%
EPS NQ rev (3m)-11.89%
EPS NY rev (1m)-2.68%
EPS NY rev (3m)-5.34%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-1.49%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 20.44 | ||
| P/S | 6.15 | ||
| P/FCF | 21.93 | ||
| P/OCF | 16.4 | ||
| P/B | 7.68 | ||
| P/tB | 7.78 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)4.24
EY4.59%
EPS(NY)4.52
Fwd EY4.89%
FCF(TTM)4.21
FCFY4.56%
OCF(TTM)5.63
OCFY6.1%
SpS15.02
BVpS12.02
TBVpS11.86
PEG (NY)3.93
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.12% | ||
| ROE | 37.49% | ||
| ROCE | 33.06% | ||
| ROIC | 20.62% | ||
| ROICexc | 27.23% | ||
| ROICexgc | 27.48% | ||
| OM | 49.35% | ||
| PM (TTM) | 30% | ||
| GM | 59.04% | ||
| FCFM | 28.04% |
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%
ROICexcg growth 3Y-3.95%
ROICexcg 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-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 131.44% | ||
| Cap/Sales | 9.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.31% | ||
| Profit Quality | 93.46% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.22 | ||
| Altman-Z | 6.61 |
F-Score8
WACC9.97%
ROIC/WACC2.07
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)40.79%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%29.74%
EPS Next Y5.54%
EPS Next 2Y3.24%
EPS Next 3Y3.34%
EPS Next 5YN/A
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
Revenue Next Year1.1%
Revenue Next 2Y0.67%
Revenue Next 3Y1.48%
Revenue Next 5Y5.76%
EBIT growth 1Y46.48%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year18.93%
EBIT Next 3Y9.71%
EBIT Next 5YN/A
FCF growth 1Y53.38%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y41.57%
OCF growth 3Y0.99%
OCF growth 5Y18.26%