Southern Copper Corporation Fundamental Analysis (NYSE: SCCO)
Southern Copper Corporation (NYSE: SCCO) shows moderate financial fundamentals with a PE ratio of 28.37, profit margin of 35.90%, and ROE of 49.38%. The company generates $15.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.3/100 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
ModerateSCCO shows balanced valuation metrics.
Growth Score
ModerateSCCO shows steady but slowing expansion.
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 28.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCCO's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Southern Copper Corporation at 12.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.00 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 $35.90 as profit after all expenses.
Operating Margin
Core operations generate 56.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $49.38 in profit for every $100 of shareholder equity.
ROA
Southern Copper Corporation generates $23.49 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 $6.78B, reflecting robust business health.
Free Cash Flow
Southern Copper Corporation generates strong free cash flow of $6.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.19 in free cash annually.
FCF Yield
SCCO converts 3.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.49
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How SCCO Stacks Against Its Sector Peers
| Metric | SCCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.37 | 27.52 | Neutral |
| ROE | 49.38% | 1182.00% | Weak |
| Net Margin | 35.90% | 195.00% | Weak |
| Debt/Equity | 0.68 | 0.74 | Neutral |
| Current Ratio | 5.06 | 3.28 | Strong Liquidity |
| ROA | 23.49% | 476796.00% | Weak |
SCCO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value