NYSE:SCCO

Stock Analysis Report

Executive Summary

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile.

Snowflake

Fundamentals

Outstanding track record average dividend payer.


Similar Companies

Share Price & News

How has Southern Copper's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

SCCO

0.5%

US Metals and Mining

0.4%

US Market


1 Year Return

-11.5%

SCCO

-7.8%

US Metals and Mining

6.9%

US Market

Return vs Industry: SCCO underperformed the US Metals and Mining industry which returned -7.8% over the past year.

Return vs Market: SCCO underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SCCOIndustryMarket
7 Day-1.8%0.5%0.4%
30 Day-2.3%-2.9%-1.1%
90 Day-10.0%-7.0%-0.5%
1 Year-6.1%-11.5%-5.0%-7.8%9.3%6.9%
3 Year36.3%23.7%9.4%3.7%45.8%36.4%
5 Year30.2%15.8%-2.5%-9.9%62.9%45.1%

Price Volatility Vs. Market

How volatile is Southern Copper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Southern Copper undervalued compared to its fair value and its price relative to the market?

18.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SCCO ($33.88) is trading above our estimate of fair value ($32.26)

Significantly Undervalued: SCCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SCCO is poor value based on its PE Ratio (18x) compared to the Metals and Mining industry average (13.6x).

PE vs Market: SCCO is poor value based on its PE Ratio (18x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SCCO is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SCCO is overvalued based on its PB Ratio (3.9x) compared to the US Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Southern Copper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCCO's forecast earnings growth (8.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SCCO's earnings (8.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SCCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCCO's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SCCO's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SCCO's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Southern Copper performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCCO's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: SCCO's earnings growth over the past year (46.1%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: SCCO earnings growth over the past year (46.1%) exceeded the Metals and Mining industry 26.6%.


Return on Equity

High ROE: SCCO's Return on Equity (21.5%) is considered high.


Return on Assets

ROA vs Industry: SCCO has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: SCCO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Southern Copper's financial position?


Financial Position Analysis

Short Term Liabilities: SCCO's short term assets ($3.1B) exceeds its short term liabilities ($1.4B)

Long Term Liabilities: SCCO's short term assets (3.1B) do not cover its long term liabilities (7.2B)


Debt to Equity History and Analysis

Debt Level: SCCO's debt to equity ratio (87.8%) is considered high

Reducing Debt: SCCO's debt to equity ratio has increased from 70.4% to 87.8% over the past 5 years.

Debt Coverage: SCCO's debt is well covered by operating cash flow (32.9%).

Interest Coverage: SCCO's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: SCCO has a high level of physical assets or inventory.

Debt Coverage by Assets: SCCO's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Southern Copper's current dividend yield, its reliability and sustainability?

4.72%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SCCO's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SCCO's dividend (4.72%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: SCCO's dividend payments have been volatile in the past 10 years.

Growing Dividend: SCCO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.1%), SCCO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCCO's dividends in 3 years are forecast to be covered by earnings (75.5% payout ratio).


Next Steps

Management

What is the CEO of Southern Copper's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Oscar González Rocha (80yo)

15yrs

Tenure

US$1,504,764

Compensation

Mr. Oscar González Rocha serves as an Executive Chairman of the Mining Division at Grupo México S.A.B. de C.V. He has been the Chief Executive Officer and President of Southern Copper Corporation since Oct ...


CEO Compensation Analysis

Compensation vs. Market: Oscar's total compensation ($USD1.50M) is below average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Oscar's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.4yrs

Average Tenure

61yo

Average Age

Experienced Management: SCCO's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

15.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SCCO's board of directors are seasoned and experienced ( 15.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Oscar González Rocha (80yo)

    President

    • Tenure: 15yrs
    • Compensation: US$1.50m
  • Julián Jorge Lazalde Psihas (51yo)

    Secretary

    • Tenure: 3.5yrs
    • Compensation: US$301.17k
  • Raul Jacob Ruisanchez (61yo)

    VP of Finance

    • Tenure: 6.5yrs
    • Compensation: US$358.38k
  • Edgard Corrales Aguilar (63yo)

    Vice President of Exploration

    • Tenure: 6.3yrs
    • Compensation: US$340.67k
  • Andres Ferrero Ghislieri (50yo)

    General Counsel & Assistant Secretary

    • Tenure: 0yrs
  • Victor Pedraglio

    Manager of Financial Planning & Investor Relations

    • Tenure: 0yrs

Board Members

  • Oscar González Rocha (80yo)

    President

    • Tenure: 15yrs
    • Compensation: US$1.50m
  • Germán Larrea Mota-Velasco (66yo)

    Chairman of the Board

    • Tenure: 19.8yrs
    • Compensation: US$133.31k
  • Gilberto Pérezalonso Cifuentes (76yo)

    Special Independent Director

    • Tenure: 17.3yrs
    • Compensation: US$181.31k
  • Enrique Luis Castillo Sánchez Mejorada (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$198.31k
  • Xavier Garcia de Quevedo Topete (72yo)

    Director

    • Tenure: 19.9yrs
    • Compensation: US$133.31k
  • Alfredo de Jesús Casar Pérez (65yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$133.31k
  • Carlos Ruiz Sacristán (69yo)

    Special Independent Director

    • Tenure: 15.7yrs
    • Compensation: US$133.31k
  • Luis Miguel Palomino Bonilla (59yo)

    Special Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$210.31k
  • Vicente Ariztegui Andreve (65yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$133.31k
  • Rafael Mac Gregor Anciola (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$133.31k

Company Information

Southern Copper Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southern Copper Corporation
  • Ticker: SCCO
  • Exchange: NYSE
  • Founded: 1952
  • Industry: Copper
  • Sector: Materials
  • Market Cap: US$26.191b
  • Shares outstanding: 773.06m
  • Website: https://www.southerncoppercorp.com

Number of Employees


Location

  • Southern Copper Corporation
  • 1440 East Missouri Avenue
  • Suite 160
  • Phoenix
  • Arizona
  • 85014
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCUDUSE (Dusseldorf Stock Exchange)YesCommon StockDEEURJan 1996
SCCONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1996
SCCOBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1996
PCUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1996
SCCO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1996
0L8BLSE (London Stock Exchange)YesCommon StockGBUSDJan 1996

Biography

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:59
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.