SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - NYSE:SCCO - US84265V1052 - Common Stock
131.9 USD
+1.15 (+0.88%)
132.5 USD
+0.6 (+0.45%)
Overall SCCO gets a fundamental rating of 7 out of 10. We evaluated SCCO against 156 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 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.
SCCO had a positive operating cash flow in the past year.
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 18.46%. This is amongst the best in the industry. SCCO outperforms 98.08% of its industry peers.
The Return On Equity of SCCO (36.15%) is better than 97.44% of its industry peers.
SCCO has a better Return On Invested Capital (20.12%) than 96.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCCO is significantly above the industry average of 12.18%.
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 93.59% of the companies in the same industry.
SCCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 49.46%, SCCO belongs to the best of the industry, outperforming 95.51% of the companies in the same industry.
In the last couple of years the Operating Margin of SCCO has grown nicely.
With an excellent Gross Margin value of 59.20%, SCCO belongs to the best 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SCCO 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.
SCCO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.13 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO's Altman-Z score of 9.13 is fine compared to the rest of the industry. SCCO outperforms 75.00% of its industry peers.
The Debt to FCF ratio of SCCO is 1.95, which is an excellent value as it means it would take SCCO, only 1.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCCO (1.95) is better than 82.05% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a Debt to Equity ratio of 0.68. This is amonst the worse of the industry: SCCO underperforms 82.05% 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 | 9.13 |
ROIC/WACC2.15
WACC9.34%
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.
With an excellent Current ratio value of 5.27, SCCO belongs to the best of the industry, outperforming 81.41% of the companies in the same industry.
A Quick Ratio of 4.51 indicates that SCCO has no problem at all paying its short term obligations.
SCCO has a Quick ratio of 4.51. This is in the better half of the industry: SCCO outperforms 78.21% of its industry peers.
| 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.
SCCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.16% yearly.
SCCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.01%.
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
Based on estimates for the next years, SCCO will show a small growth in Earnings Per Share. The EPS will grow by 6.81% on average per year.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y12.62%
EPS Next 2Y4.43%
EPS Next 3Y3.88%
EPS Next 5Y6.81%
Revenue Next Year4.33%
Revenue Next 2Y1.73%
Revenue Next 3Y1.83%
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
SCCO is valuated quite expensively with a Price/Earnings ratio of 29.31.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 71.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCCO to the average of the S&P500 Index (27.53), we can say SCCO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 28.76, the valuation of SCCO can be described as expensive.
SCCO's Price/Forward Earnings is on the same level as the industry average.
SCCO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 28.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than 62.82% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCCO indicates a somewhat cheap valuation: SCCO is cheaper than 79.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.93 | ||
| EV/EBITDA | 16.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SCCO may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.53
EPS Next 2Y4.43%
EPS Next 3Y3.88%
5. Dividend
5.1 Amount
SCCO has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, SCCO pays a better dividend. On top of this SCCO pays more dividend than 87.18% 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 | 2.04% |
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
58.99% of the earnings are spent on dividend by SCCO. 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 2Y4.43%
EPS Next 3Y3.88%
131.9
+1.15 (+0.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change0.29%
Market Cap107.12B
Analysts52
Price Target101.14 (-23.32%)
Short Float %N/A
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend2.06
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)2.54%
PT rev (3m)9.33%
EPS NQ rev (1m)4.35%
EPS NQ rev (3m)6.44%
EPS NY rev (1m)0.98%
EPS NY rev (3m)2.53%
Revenue NQ rev (1m)4.36%
Revenue NQ rev (3m)3.77%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 28.76 | ||
| P/S | 9.01 | ||
| P/FCF | 30.93 | ||
| P/OCF | 23.81 | ||
| P/B | 10.73 | ||
| P/tB | 10.86 | ||
| EV/EBITDA | 16.2 |
EPS(TTM)4.5
EY3.41%
EPS(NY)4.59
Fwd EY3.48%
FCF(TTM)4.26
FCFY3.23%
OCF(TTM)5.54
OCFY4.2%
SpS14.64
BVpS12.29
TBVpS12.14
PEG (NY)2.32
PEG (5Y)1.53
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%
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-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 | 9.13 |
F-Score7
WACC9.34%
ROIC/WACC2.15
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 Y12.62%
EPS Next 2Y4.43%
EPS Next 3Y3.88%
EPS Next 5Y6.81%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
Revenue Next Year4.33%
Revenue Next 2Y1.73%
Revenue Next 3Y1.83%
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%