Southern Copper (SCCO) Stock Analysis
Here is a fundamental analysis of Southern Copper (SCCO), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| 1-Year Return | 110.18% | 41.31% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| 1-Year Volatility | 49.76% | 53.58% |
| Beta | 1.11 | 0.95 |
Company Profile
| Profile Item | SCCO |
|---|---|
| Name | Southern Copper Corporation |
| Country/Region | United States |
| GICS Sector | Materials |
| GICS Industry Group | Materials |
| GICS Industry | Metals & Mining |
| GICS Sub-Industry | Copper |
| Market Capitalization | 158.35 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 5, 1996 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Southern Copper (SCCO) trades at P/E ratio of 32.17, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
SCCO
Materials industry group
32.17
Group distribution
- Max
- 60.17
- Q3
- 33.90
- SCCO
- 32.17
- Median
- 22.02
- Q1
- 15.32
- Min
- 4.65
Largest peers
- FCX
- 36.20
- LIN
- 34.72
- SCCO
- 32.17
- BHP
- 22.59
- RIO
- 17.30
- AEM
- 15.31
- NEM
- 13.00
Price-to-Sales Ratio (TTM)
Southern Copper (SCCO) trades at 10.88 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
SCCO
Materials industry group
10.88
Group distribution
- SCCO
- 10.88
- Max
- 9.93
- Q3
- 4.61
- Median
- 2.05
- Q1
- 0.79
- Min
- 0.00
Largest peers
- SCCO
- 10.88
- LIN
- 6.99
- AEM
- 6.01
- NEM
- 4.29
- BHP
- 4.27
- FCX
- 3.72
- RIO
- 2.97
Price-to-Book Ratio (MRQ)
Southern Copper (SCCO) trades at 13.43 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
SCCO
Materials industry group
13.43
Group distribution
- SCCO
- 13.43
- Max
- 8.35
- Q3
- 4.40
- Median
- 2.67
- Q1
- 1.45
- Min
- -0.48
Largest peers
- SCCO
- 13.43
- LIN
- 6.28
- FCX
- 5.04
- BHP
- 4.57
- AEM
- 3.10
- NEM
- 3.08
- RIO
- 2.75
Valuation at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 32.17 | 22.02 |
| Price-to-Sales Ratio (TTM) | 10.88 | 2.05 |
| Price-to-Book Ratio (MRQ) | 13.43 | 2.67 |
| Free Cash Flow Yield | 2.69% | 1.54% |
Profitability
Return on Equity (TTM)
Southern Copper (SCCO) posts ROE of 46.34%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
SCCO
Materials industry group
46.34%
Group distribution
- Max
- 51.93%
- SCCO
- 46.34%
- Q3
- 17.55%
- Median
- 5.92%
- Q1
- -10.29%
- Min
- -50.42%
Largest peers
- SCCO
- 46.34%
- NEM
- 25.83%
- BHP
- 24.71%
- AEM
- 22.30%
- LIN
- 18.23%
- RIO
- 16.40%
- FCX
- 15.63%
Net Profit Margin (TTM)
Southern Copper (SCCO) keeps 34.13% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
SCCO
Materials industry group
34.13%
Group distribution
- Max
- 35.99%
- SCCO
- 34.13%
- Q3
- 14.87%
- Median
- 3.80%
- Q1
- 0.00%
- Min
- -21.87%
Largest peers
- AEM
- 39.46%
- SCCO
- 34.13%
- NEM
- 33.87%
- LIN
- 20.44%
- BHP
- 18.97%
- RIO
- 17.29%
- FCX
- 10.34%
Operating Profit Margin (TTM)
Southern Copper (SCCO) turns 58.34% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
SCCO
Materials industry group
58.34%
Group distribution
- Max
- 66.92%
- SCCO
- 58.34%
- Q3
- 27.27%
- Median
- 9.63%
- Q1
- 0.00%
- Min
- -32.85%
Largest peers
- AEM
- 62.82%
- NEM
- 61.38%
- SCCO
- 58.34%
- BHP
- 40.73%
- FCX
- 31.07%
- LIN
- 28.47%
- RIO
- 25.32%
Profitability at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 46.34% | 5.92% |
| Return on Assets (TTM) | 23.81% | 4.26% |
| Net Profit Margin (TTM) | 34.13% | 3.80% |
| Operating Profit Margin (TTM) | 58.34% | 9.63% |
| Gross Profit Margin (TTM) | 62.71% | 27.28% |
Financial Strength
Current Ratio (MRQ)
Southern Copper (SCCO) has current ratio of 4.38, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
SCCO
Materials industry group
4.38
Group distribution
- Max
- 6.31
- SCCO
- 4.38
- Q3
- 3.52
- Median
- 2.28
- Q1
- 1.43
- Min
- 0.12
Largest peers
- SCCO
- 4.38
- AEM
- 3.15
- NEM
- 2.44
- FCX
- 2.39
- BHP
- 1.65
- RIO
- 1.45
- LIN
- 0.83
Debt-to-Equity Ratio (MRQ)
Southern Copper (SCCO) has debt-to-equity ratio of 0.62, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
SCCO
Materials industry group
0.62
Group distribution
- Max
- 2.02
- Q3
- 0.92
- SCCO
- 0.62
- Median
- 0.44
- Q1
- 0.14
- Min
- 0.00
Largest peers
- LIN
- 0.66
- SCCO
- 0.62
- BHP
- 0.53
- RIO
- 0.35
- FCX
- 0.33
- NEM
- 0.16
- AEM
- 0.01
Financial Strength at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 4.38 | 2.28 |
| Debt-to-Equity Ratio (MRQ) | 0.62 | 0.44 |
| Net Debt / EBITDA | 0.23 | 1.63 |
Dividends
Dividend Yield (TTM)
Southern Copper (SCCO) has dividend yield of 2.11%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
SCCO
Materials industry group
2.11%
Group distribution
- Max
- 4.47%
- SCCO
- 2.11%
- Q3
- 1.89%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RIO
- 3.82%
- BHP
- 2.93%
- SCCO
- 2.11%
- LIN
- 1.22%
- AEM
- 1.11%
- NEM
- 1.04%
- FCX
- 0.88%
Dividend Payout Ratio (TTM)
Southern Copper (SCCO) has payout ratio of 56.33%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
SCCO
Materials industry group
56.33%
Group distribution
- Max
- 90.00%
- SCCO
- 56.33%
- Q3
- 38.50%
- Median
- 8.90%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RIO
- 61.31%
- SCCO
- 56.33%
- BHP
- 54.64%
- LIN
- 40.45%
- FCX
- 31.75%
- AEM
- 15.54%
- NEM
- 13.10%
Dividends at a Glance
| Metric | Current stock: SCCO | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.11% | 0.58% |
| Dividend Payout Ratio (TTM) | 56.33% | 8.90% |