SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SCCO - US84265V1052 - Common Stock
129.12 USD
+2.32 (+1.83%)
129.12 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to SCCO. SCCO was compared to 153 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make SCCO suitable 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.
SCCO had positive earnings in each of the past 5 years.
SCCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCCO has a Return On Assets of 18.79%. This is amongst the best in the industry. SCCO outperforms 98.04% of its industry peers.
SCCO has a Return On Equity of 36.56%. This is amongst the best in the industry. SCCO outperforms 98.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.75%, SCCO belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCCO is significantly above the industry average of 13.09%.
The 3 year average ROIC (18.44%) for SCCO is below the current ROIC(20.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.79% | ||
| ROE | 36.56% | ||
| ROIC | 20.75% |
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 has a better Profit Margin (30.98%) than 94.12% of its industry peers.
In the last couple of years the Profit Margin of SCCO has grown nicely.
SCCO's Operating Margin of 50.25% is amongst the best of the industry. SCCO outperforms 95.42% of its industry peers.
In the last couple of years the Operating Margin of SCCO has grown nicely.
SCCO's Gross Margin of 59.57% is amongst the best of the industry. SCCO outperforms 91.50% of its industry peers.
SCCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.25% | ||
| PM (TTM) | 30.98% | ||
| GM | 59.57% |
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.
The number of shares outstanding for SCCO remains at a similar level compared to 1 year ago.
SCCO has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SCCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.64 indicates that SCCO is not in any danger for bankruptcy at the moment.
SCCO has a Altman-Z score of 8.64. This is in the better half of the industry: SCCO outperforms 79.08% of its industry peers.
SCCO has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
SCCO has a better Debt to FCF ratio (1.94) than 78.43% of its industry peers.
SCCO has a Debt/Equity ratio of 0.65. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
The Debt to Equity ratio of SCCO (0.65) is worse than 81.70% 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 | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 8.64 |
ROIC/WACC2.24
WACC9.26%
2.3 Liquidity
SCCO has a Current Ratio of 4.52. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SCCO (4.52) is better than 76.47% of its industry peers.
SCCO has a Quick Ratio of 3.91. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
SCCO has a better Quick ratio (3.91) than 74.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 |
3. Growth
3.1 Past
SCCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.99%, which is quite impressive.
The Earnings Per Share has been growing by 19.16% on average over the past years. This is quite good.
SCCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.70%.
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)24.99%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%19.61%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
3.2 Future
The Earnings Per Share is expected to grow by 6.81% on average over the next years.
SCCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
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.
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 quite expensively with a Price/Earnings ratio of 27.47.
SCCO's Price/Earnings ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 67.32% of the companies in the same industry.
SCCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
SCCO is valuated rather expensively with a Price/Forward Earnings ratio of 23.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCCO is on the same level as its industry peers.
SCCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCCO is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SCCO is valued a bit cheaper than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.13 | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
SCCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SCCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.43
EPS Next 2Y13.74%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, SCCO has a reasonable but not impressive dividend return.
SCCO's Dividend Yield is rather good when compared to the industry average which is at 2.72. SCCO pays more dividend than 87.58% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
60.30% of the earnings are spent on dividend by SCCO. This is not a sustainable payout ratio.
The dividend of SCCO is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.3%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
129.12
+2.32 (+1.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.66%
Inst Owner Change1.76%
Ins Owners0.07%
Ins Owner Change0.44%
Market Cap104.86B
Revenue(TTM)12.33B
Net Income(TTM)3.82B
Analysts53.75
Price Target129.81 (0.53%)
Short Float %10.58%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend2.04
Dividend Growth(5Y)5.77%
DP60.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.36%
Min EPS beat(2)0.02%
Max EPS beat(2)4.7%
EPS beat(4)3
Avg EPS beat(4)1.29%
Min EPS beat(4)-2.17%
Max EPS beat(4)4.7%
EPS beat(8)5
Avg EPS beat(8)3.48%
EPS beat(12)8
Avg EPS beat(12)4.59%
EPS beat(16)9
Avg EPS beat(16)0.41%
Revenue beat(2)1
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-2.4%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)3.44%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)7
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)-0.65%
PT rev (1m)28.35%
PT rev (3m)31.6%
EPS NQ rev (1m)5.65%
EPS NQ rev (3m)30.38%
EPS NY rev (1m)3.38%
EPS NY rev (3m)9.25%
Revenue NQ rev (1m)6.45%
Revenue NQ rev (3m)16.3%
Revenue NY rev (1m)1.82%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.47 | ||
| Fwd PE | 23.73 | ||
| P/S | 8.5 | ||
| P/FCF | 30.13 | ||
| P/OCF | 22.71 | ||
| P/B | 10.03 | ||
| P/tB | 10.15 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)4.7
EY3.64%
EPS(NY)5.44
Fwd EY4.21%
FCF(TTM)4.29
FCFY3.32%
OCF(TTM)5.69
OCFY4.4%
SpS15.19
BVpS12.87
TBVpS12.72
PEG (NY)1.26
PEG (5Y)1.43
Graham Number36.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.79% | ||
| ROE | 36.56% | ||
| ROCE | 33.27% | ||
| ROIC | 20.75% | ||
| ROICexc | 27.4% | ||
| ROICexgc | 27.64% | ||
| OM | 50.25% | ||
| PM (TTM) | 30.98% | ||
| GM | 59.57% | ||
| FCFM | 28.22% |
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 | 0.65 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 133.58% | ||
| Cap/Sales | 9.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.5% | ||
| Profit Quality | 91.09% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.91 | ||
| Altman-Z | 8.64 |
F-Score7
WACC9.26%
ROIC/WACC2.24
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)24.99%
EPS 3Y-0.21%
EPS 5Y19.16%
EPS Q2Q%19.61%
EPS Next Y21.84%
EPS Next 2Y13.74%
EPS Next 3Y7.69%
EPS Next 5Y6.81%
Revenue 1Y (TTM)12.7%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%15.23%
Revenue Next Year8.28%
Revenue Next 2Y6.65%
Revenue Next 3Y4.52%
Revenue Next 5Y5.1%
EBIT growth 1Y21.16%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.69%
EBIT Next 3Y7.9%
EBIT Next 5Y10.17%
FCF growth 1Y13.37%
FCF growth 3Y-0.06%
FCF growth 5Y23.03%
OCF growth 1Y12.26%
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 5 / 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 27.47 and the Price/Book (PB) ratio is 10.03.
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 21.84% in the next year.