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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

SCCO
GSPC
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Southern Copper (SCCO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Southern Copper (SCCO) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry group median
1-Year Return110.18%41.31%

Risk

Drawdown

SCCO
GSPC
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Southern Copper (SCCO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry group median
1-Year Volatility49.76%53.58%
Beta1.110.95

Company Profile

Company profile fields for Southern Copper (SCCO)
Profile ItemSCCO
NameSouthern Copper Corporation
Country/RegionUnited States
GICS SectorMaterials
GICS Industry GroupMaterials
GICS IndustryMetals & Mining
GICS Sub-IndustryCopper
Market Capitalization158.35 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJanuary 5, 1996
Security TypeCommon 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
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Where Southern Copper (SCCO) stands on P/E ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Southern Copper (SCCO) stands on P/S ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Southern Copper (SCCO) stands on P/B ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry group median
Price-to-Earnings Ratio (TTM)32.1722.02
Price-to-Sales Ratio (TTM)10.882.05
Price-to-Book Ratio (MRQ)13.432.67
Free Cash Flow Yield2.69%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%
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Where Southern Copper (SCCO) stands on ROE within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Southern Copper (SCCO) stands on net margin within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Southern Copper (SCCO) stands on operating margin within its Materials peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry 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
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Where Southern Copper (SCCO) stands on current ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Southern Copper (SCCO) stands on debt-to-equity ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry group median
Current Ratio (MRQ)4.382.28
Debt-to-Equity Ratio (MRQ)0.620.44
Net Debt / EBITDA0.231.63

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%
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Where Southern Copper (SCCO) stands on dividend yield within its Materials peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Southern Copper (SCCO) stands on payout ratio within its Materials peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Southern Copper (SCCO) metric values compared with Materials industry-group medians
MetricCurrent stock: SCCOIndustry group median
Dividend Yield (TTM)2.11%0.58%
Dividend Payout Ratio (TTM)56.33%8.90%