SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
NYSE:SCCO - New York Stock Exchange, Inc. - US84265V1052 - Common Stock - Currency: USD
SCCO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making SCCO a very profitable company, without any liquidiy or solvency issues. SCCO has a correct valuation and a medium growth rate. 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.
In the past 5 years SCCO has always been profitable.
Each year in the past 5 years SCCO had a positive operating cash flow.
1.2 Ratios
SCCO has a Return On Assets of 18.12%. This is amongst the best in the industry. SCCO outperforms 96.75% of its industry peers.
With an excellent Return On Equity value of 37.49%, SCCO belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
The Return On Invested Capital of SCCO (20.62%) is better than 98.05% 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 11.16%.
The 3 year average ROIC (18.44%) for SCCO is below the current ROIC(20.62%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 30.00%, SCCO belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Profit Margin of SCCO has grown nicely.
With an excellent Operating Margin value of 49.35%, SCCO belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
SCCO's Operating Margin has improved in the last couple of years.
SCCO has a better Gross Margin (59.04%) 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
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.
Compared to 5 years ago, SCCO has about the same amount of shares outstanding.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.85 indicates that SCCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.85, SCCO is doing good in the industry, outperforming 79.22% of the companies in the same industry.
The Debt to FCF ratio of SCCO is 2.16, which is a good value as it means it would take SCCO, 2.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.16, SCCO belongs to the top of the industry, outperforming 80.52% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that SCCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, SCCO is doing worse than 83.12% of the companies in the same industry.
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 | 0.71 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 6.85 |
ROIC/WACC2.35
WACC8.76%
2.3 Liquidity
A Current Ratio of 3.71 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a Current ratio of 3.71. This is in the better half of the industry: SCCO outperforms 74.68% of its industry peers.
A Quick Ratio of 3.22 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a Quick ratio of 3.22. This is in the better half of the industry: SCCO outperforms 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.22 |
3. Growth
3.1 Past
SCCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.11%, 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.
The Revenue has grown by 23.23% in the past year. This is a very strong growth!
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)54.11%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%28.93%
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
3.2 Future
The Earnings Per Share is expected to grow by 3.07% on average over the next years.
The Revenue is expected to grow by 5.76% on average over the next years.
EPS Next Y5.02%
EPS Next 2Y2.61%
EPS Next 3Y3.07%
EPS Next 5YN/A
Revenue Next Year0.96%
Revenue Next 2Y0.4%
Revenue Next 3Y1.43%
Revenue Next 5Y5.76%
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.
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
SCCO is valuated rather expensively with a Price/Earnings ratio of 21.39.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 75.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.57, SCCO is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.61, the valuation of SCCO can be described as rather expensive.
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 22.41, SCCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 62.99% of the companies in the same industry.
SCCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 76.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 11.67 |
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)4.26
PEG (5Y)1.11
EPS Next 2Y2.61%
EPS Next 3Y3.07%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.78%. 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 2.99. SCCO pays more dividend than 87.01% of the companies 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 | 2.78% |
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.
Dividend Growth(5Y)5.77%
Div Incr Years0
Div Non Decr Years0
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.
The dividend of SCCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.83%
EPS Next 2Y2.61%
EPS Next 3Y3.07%
96.45
+1.69 (+1.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.86%
Inst Owner Change3.14%
Ins Owners0.07%
Ins Owner Change0.67%
Market Cap77.55B
Analysts53.75
Price Target92.51 (-4.09%)
Short Float %N/A
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.06
Dividend Growth(5Y)5.77%
DP43.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.21%
Min EPS beat(2)-2.17%
Max EPS beat(2)2.59%
EPS beat(4)2
Avg EPS beat(4)3.41%
Min EPS beat(4)-2.17%
Max EPS beat(4)13.47%
EPS beat(8)4
Avg EPS beat(8)1.84%
EPS beat(12)7
Avg EPS beat(12)1.49%
EPS beat(16)8
Avg EPS beat(16)-0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)3.44%
Revenue beat(4)2
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)7.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.79%
Revenue beat(16)9
Avg Revenue beat(16)-0.44%
PT rev (1m)-0.31%
PT rev (3m)-4.04%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-8.25%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-4.59%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 21.61 | ||
| P/S | 6.49 | ||
| P/FCF | 23.13 | ||
| P/OCF | 17.3 | ||
| P/B | 8.11 | ||
| P/tB | 8.21 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)4.51
EY4.68%
EPS(NY)4.46
Fwd EY4.63%
FCF(TTM)4.17
FCFY4.32%
OCF(TTM)5.58
OCFY5.78%
SpS14.87
BVpS11.9
TBVpS11.75
PEG (NY)4.26
PEG (5Y)1.11
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 | 6.85 |
F-Score8
WACC8.76%
ROIC/WACC2.35
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)54.11%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%28.93%
EPS Next Y5.02%
EPS Next 2Y2.61%
EPS Next 3Y3.07%
EPS Next 5YN/A
Revenue 1Y (TTM)23.23%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%20.08%
Revenue Next Year0.96%
Revenue Next 2Y0.4%
Revenue Next 3Y1.43%
Revenue Next 5Y5.76%
EBIT growth 1Y46.48%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year17.17%
EBIT Next 3Y8.97%
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%