SOUTHERN COPPER CORP (SCCO) Stock Fundamental Analysis
NYSE:SCCO - US84265V1052 - Common Stock
96.09 USD
-0.63 (-0.65%)
96.5 USD
+0.41 (+0.43%)
We assign a fundamental rating of 8 out of 10 to SCCO. SCCO was compared to 156 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 has a correct valuation and a medium growth rate. These ratings would make SCCO suitable for quality investing!
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.
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
The Return On Assets of SCCO (18.46%) is better than 98.08% of its industry peers.
SCCO's Return On Equity of 36.15% is amongst the best of the industry. SCCO outperforms 97.44% of its industry peers.
SCCO has a Return On Invested Capital of 20.12%. This is amongst the best in the industry. SCCO outperforms 97.44% 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 12.87%.
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 92.31% of the companies in the same industry.
SCCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 49.46%, SCCO belongs to the top 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.
Looking at the Gross Margin, with a value of 59.20%, SCCO belongs to the top 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
Compared to 1 year ago, SCCO has an improved debt to assets ratio.
2.2 Solvency
SCCO has an Altman-Z score of 7.30. This indicates that SCCO is financially healthy and has little risk of bankruptcy at the moment.
SCCO's Altman-Z score of 7.30 is fine compared to the rest of the industry. SCCO outperforms 78.85% 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.
SCCO has a Debt to FCF ratio of 1.95. This is amongst the best in the industry. SCCO outperforms 80.77% of its industry peers.
SCCO has a Debt/Equity ratio of 0.68. This is a neutral value indicating SCCO is somewhat dependend on debt financing.
SCCO has a worse Debt to Equity ratio (0.68) than 80.77% 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 | 0.68 | ||
| Debt/FCF | 1.95 | ||
| Altman-Z | 7.3 |
ROIC/WACC2.03
WACC9.89%
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.
Looking at the Current ratio, with a value of 5.27, SCCO belongs to the top of the industry, outperforming 83.97% 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 better Quick ratio (4.51) than 81.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.27 | ||
| Quick Ratio | 4.51 |
3. Growth
3.1 Past
SCCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.83%, 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 13.01% in the past year. This is quite good.
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)31.83%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%1.9%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
3.2 Future
The Earnings Per Share is expected to grow by 6.64% on average over the next years.
Based on estimates for the next years, SCCO will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y10.66%
EPS Next 2Y3.47%
EPS Next 3Y4.39%
EPS Next 5Y6.64%
Revenue Next Year3.66%
Revenue Next 2Y0.92%
Revenue Next 3Y2.02%
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 rather expensively with a Price/Earnings ratio of 21.26.
Based on the Price/Earnings ratio, SCCO is valued a bit cheaper than the industry average as 77.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCCO to the average of the S&P500 Index (27.08), we can say SCCO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 21.17, the valuation of SCCO can be described as rather expensive.
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 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
SCCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCCO is cheaper than 67.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCCO is valued cheaper than 80.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.54 | ||
| EV/EBITDA | 11.89 |
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)1.99
PEG (5Y)1.1
EPS Next 2Y3.47%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.76%, 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 2.69. SCCO pays more dividend than 91.03% of the companies in the same industry.
SCCO's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 58.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
SCCO's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP58.99%
EPS Next 2Y3.47%
EPS Next 3Y4.39%
96.09
-0.63 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners9.76%
Inst Owner Change-81.64%
Ins Owners0.07%
Ins Owner Change0.37%
Market Cap78.04B
Analysts52.5
Price Target98.64 (2.65%)
Short Float %N/A
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)2.49%
PT rev (3m)6.3%
EPS NQ rev (1m)-3.35%
EPS NQ rev (3m)-4.04%
EPS NY rev (1m)1.54%
EPS NY rev (3m)4.85%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.26 | ||
| Fwd PE | 21.17 | ||
| P/S | 6.56 | ||
| P/FCF | 22.54 | ||
| P/OCF | 17.35 | ||
| P/B | 7.82 | ||
| P/tB | 7.91 | ||
| EV/EBITDA | 11.89 |
EPS(TTM)4.52
EY4.7%
EPS(NY)4.54
Fwd EY4.72%
FCF(TTM)4.26
FCFY4.44%
OCF(TTM)5.54
OCFY5.76%
SpS14.64
BVpS12.29
TBVpS12.14
PEG (NY)1.99
PEG (5Y)1.1
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 | 7.3 |
F-Score7
WACC9.89%
ROIC/WACC2.03
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)31.83%
EPS 3Y0.05%
EPS 5Y19.35%
EPS Q2Q%1.9%
EPS Next Y10.66%
EPS Next 2Y3.47%
EPS Next 3Y4.39%
EPS Next 5Y6.64%
Revenue 1Y (TTM)13.01%
Revenue growth 3Y1.5%
Revenue growth 5Y9.43%
Sales Q2Q%-2.16%
Revenue Next Year3.66%
Revenue Next 2Y0.92%
Revenue Next 3Y2.02%
Revenue Next 5Y5.1%
EBIT growth 1Y24.19%
EBIT growth 3Y-2.89%
EBIT growth 5Y15.07%
EBIT Next Year21.57%
EBIT Next 3Y8.57%
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%