SOUTHERN COPPER CORP (SCCO)
US84265V1052 - Common Stock
We assign a fundamental rating of 6 out of 10 to SCCO. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SCCO had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 13.99%, SCCO belongs to the top of the industry, outperforming 94.81% of the companies in the same industry.
SCCO has a Return On Equity of 31.13%. This is amongst the best in the industry. SCCO outperforms 96.75% of its industry peers.
The Return On Invested Capital of SCCO (16.17%) is better than 95.45% of its industry peers.
SCCO had an Average Return On Invested Capital over the past 3 years of 19.18%. This is significantly above the industry average of 8.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 31.13% | ||
| ROIC | 16.17% |
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 (24.20%) than 95.45% of its industry peers.
SCCO's Profit Margin has improved in the last couple of years.
SCCO has a better Operating Margin (41.52%) than 96.10% of its industry peers.
SCCO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 53.24%, SCCO belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
In the last couple of years the Gross Margin of SCCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.52% | ||
| PM (TTM) | 24.2% | ||
| GM | 53.24% |
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 7.96. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO has a Altman-Z score of 7.96. This is amongst the best in the industry. SCCO outperforms 83.12% of its industry peers.
SCCO has a debt to FCF ratio of 3.03. This is a good value and a sign of high solvency as SCCO would need 3.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.03, SCCO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that SCCO is somewhat dependend on debt financing.
SCCO has a Debt to Equity ratio of 0.83. This is amonst the worse of the industry: SCCO underperforms 87.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 3.03 | ||
| Altman-Z | 7.96 |
ROIC/WACC1.84
WACC8.77%
2.3 Liquidity
SCCO has a Current Ratio of 3.31. This indicates that SCCO is financially healthy and has no problem in meeting its short term obligations.
SCCO's Current ratio of 3.31 is fine compared to the rest of the industry. SCCO outperforms 65.58% of its industry peers.
A Quick Ratio of 2.56 indicates that SCCO has no problem at all paying its short term obligations.
SCCO's Quick ratio of 2.56 is fine compared to the rest of the industry. SCCO outperforms 69.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
The earnings per share for SCCO have decreased strongly by -12.17% in the last 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 decreased by -3.73% 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)-12.17%
EPS 3Y15.53%
EPS 5Y9.37%
EPS growth Q2Q-9.52%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y7.41%
Revenue growth 5Y6.88%
Revenue growth Q2Q-6.95%
3.2 Future
Based on estimates for the next years, SCCO will show a very strong growth in Earnings Per Share. The EPS will grow by 20.78% on average per year.
SCCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.37% yearly.
EPS Next Y17.29%
EPS Next 2Y24.11%
EPS Next 3Y25.53%
EPS Next 5Y20.78%
Revenue Next Year5.28%
Revenue Next 2Y9.43%
Revenue Next 3Y10.3%
Revenue Next 5Y5.37%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.34 indicates a quite expensive valuation of SCCO.
Compared to the rest of the industry, the Price/Earnings ratio of SCCO is on the same level as its industry peers.
SCCO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.11.
Based on the Price/Forward Earnings ratio of 23.47, the valuation of SCCO can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SCCO.
When comparing the Price/Forward Earnings ratio of SCCO to the average of the S&P500 Index (20.39), we can say SCCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 23.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SCCO.
SCCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 70.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.4 | ||
| EV/EBITDA | 19.17 |
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.
A more expensive valuation may be justified as SCCO's earnings are expected to grow with 25.53% in the coming years.
PEG (NY)2.16
PEG (5Y)3.98
EPS Next 2Y24.11%
EPS Next 3Y25.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, 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 2.86. SCCO pays more dividend than 87.01% of the companies in the same industry.
SCCO's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
On average, the dividend of SCCO grows each year by 23.36%, which is quite nice.
SCCO has been paying a dividend for at least 10 years, so it has 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 125.12% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SCCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP125.12%
EPS Next 2Y24.11%
EPS Next 3Y25.53%
SOUTHERN COPPER CORP
NYSE:SCCO (5/8/2024, 2:56:08 PM)
113.15
-1.92 (-1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap87.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 23.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.16
PEG (5Y)3.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.99% | ||
| ROE | 31.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.52% | ||
| PM (TTM) | 24.2% | ||
| GM | 53.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.17%
EPS 3Y15.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y7.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y