Southern Copper Corporation
Southern Copper Corporation Fundamental Analysis
Southern Copper Corporation (SCCO) shows strong financial fundamentals with a PE ratio of 38.64, profit margin of 32.30%, and ROE of 42.25%. The company generates $13.2B in annual revenue with strong year-over-year growth of 15.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SCCO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSCCO demonstrates superior asset utilization.
Valuation Score
WeakSCCO trades at a premium to fair value.
Growth Score
ExcellentSCCO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSCCO maintains a strong and stable balance sheet.
Profitability Score
ExcellentSCCO achieves industry-leading margins.
Key Financial Metrics
Is SCCO Expensive or Cheap?
P/E Ratio
SCCO trades at 38.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SCCO's PEG of 3.32 indicates potential overvaluation.
Price to Book
The market values Southern Copper Corporation at 15.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.23 times EBITDA. This signals the market has high growth expectations.
How Well Does SCCO Make Money?
Net Profit Margin
For every $100 in sales, Southern Copper Corporation keeps $32.30 as profit after all expenses.
Operating Margin
Core operations generate 52.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.25 in profit for every $100 of shareholder equity.
ROA
Southern Copper Corporation generates $20.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Southern Copper Corporation generates strong operating cash flow of $4.55B, reflecting robust business health.
Free Cash Flow
Southern Copper Corporation generates strong free cash flow of $3.43B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.15 in free cash annually.
FCF Yield
SCCO converts 2.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.30
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How SCCO Stacks Against Its Sector Peers
| Metric | SCCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.64 | 27.41 | Worse (Expensive) |
| ROE | 42.25% | 859.00% | Weak |
| Net Margin | 32.30% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.66 | 0.51 | Weak (High Leverage) |
| Current Ratio | 3.89 | 4.80 | Strong Liquidity |
| ROA | 20.27% | -3590.00% (disorted) | Strong |
SCCO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Southern Copper Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.34%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
123.51%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
127.45%
Industry Style: Cyclical, Commodity, Value
High Growth