Southern Copper Corporation
Southern Copper Corporation Fundamental Analysis
Southern Copper Corporation (SCCO) shows strong financial fundamentals with a PE ratio of 31.75, profit margin of 34.16%, and ROE of 45.96%. The company generates $14.6B in annual revenue with strong year-over-year growth of 17.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.9/100 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
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 31.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SCCO's PEG of 1.00 indicates potential undervaluation.
Price to Book
The market values Southern Copper Corporation at 13.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.51 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 $34.16 as profit after all expenses.
Operating Margin
Core operations generate 54.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $45.96 in profit for every $100 of shareholder equity.
ROA
Southern Copper Corporation generates $22.67 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 $5.76B, reflecting robust business health.
Free Cash Flow
Southern Copper Corporation generates strong free cash flow of $4.30B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.20 in free cash annually.
FCF Yield
SCCO converts 2.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How SCCO Stacks Against Its Sector Peers
| Metric | SCCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.75 | 25.21 | Worse (Expensive) |
| ROE | 45.96% | 937.00% | Weak |
| Net Margin | 34.16% | -104848.00% (disorted) | Strong |
| Debt/Equity | 0.63 | 0.53 | Neutral |
| Current Ratio | 4.38 | 6.85 | Strong Liquidity |
| ROA | 22.67% | -2767.00% (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
55.01%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
154.60%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
57.47%
Industry Style: Cyclical, Commodity, Value
High Growth