Southern Copper
Market Cap
US$29.0b
Last Updated
2020/06/03 02:59 UTC
Data Sources
Company Financials +
Executive Summary
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
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
Stable Share Price: SCCO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.3%
SCCO
1.6%
US Metals and Mining
1.7%
US Market
1 Year Return
6.9%
SCCO
8.8%
US Metals and Mining
8.5%
US Market
Return vs Industry: SCCO underperformed the US Metals and Mining industry which returned 9.1% over the past year.
Return vs Market: SCCO underperformed the US Market which returned 9.3% over the past year.
Shareholder returns
| SCCO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 1.6% | 1.7% |
| 30 Day | 16.0% | 5.8% | 9.5% |
| 90 Day | 6.1% | 4.3% | 0.1% |
| 1 Year | 11.3%6.9% | 11.5%8.8% | 11.0%8.5% |
| 3 Year | 20.3%7.0% | 6.1%-0.8% | 32.2%23.5% |
| 5 Year | 39.8%22.1% | 23.1%12.7% | 58.6%40.8% |
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
1 week ago | Simply Wall St
Should You Be Pleased About The CEO Pay At Southern Copper Corporation's (NYSE:SCCO)3 weeks ago | Simply Wall St
Southern Copper Corporation Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models4 weeks ago | Simply Wall St
Is Southern Copper (NYSE:SCCO) Using Too Much Debt?Valuation
Is Southern Copper undervalued compared to its fair value and its price relative to the market?
22.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SCCO ($37.51) is trading above our estimate of fair value ($20.45)
Significantly Below Fair Value: 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 (22.1x) compared to the Metals and Mining industry average (8.3x).
PE vs Market: SCCO is poor value based on its PE Ratio (22.1x) compared to the US market (15.7x).
Price to Earnings Growth Ratio
PEG Ratio: SCCO is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: SCCO is overvalued based on its PB Ratio (4.3x) compared to the US Metals and Mining industry average (1.3x).
Next Steps
Future Growth
How is Southern Copper forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
20.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SCCO's forecast earnings growth (20.8% per year) is above the savings rate (2.2%).
Earnings vs Market: SCCO's earnings (20.8% per year) are forecast to grow slower than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SCCO's revenue (9% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: SCCO's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SCCO's Return on Equity is forecast to be high in 3 years time (24.2%)
Next Steps
Past Performance
How has Southern Copper performed over the past 5 years?
10.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCCO has high quality earnings.
Growing Profit Margin: SCCO's current net profit margins (18.1%) are lower than last year (20.8%).
Past Earnings Growth Analysis
Earnings Trend: SCCO's earnings have grown by 10.9% per year over the past 5 years.
Accelerating Growth: SCCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SCCO had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-12.4%).
Return on Equity
High ROE: SCCO's Return on Equity (19.5%) is considered low.
Next Steps
Financial Health
How is Southern Copper's financial position?
Financial Position Analysis
Short Term Liabilities: SCCO's short term assets ($4.1B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: SCCO's short term assets ($4.1B) do not cover its long term liabilities ($8.1B).
Debt to Equity History and Analysis
Debt Level: SCCO's debt to equity ratio (102.6%) is considered high.
Reducing Debt: SCCO's debt to equity ratio has increased from 75.8% to 102.6% over the past 5 years.
Debt Coverage: SCCO's debt is well covered by operating cash flow (29%).
Interest Coverage: SCCO's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Southern Copper's current dividend yield, its reliability and sustainability?
2.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SCCO's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: SCCO's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (4.55%).
Stability and Growth of Payments
Stable Dividend: SCCO's dividend payments have been volatile in the past 10 years.
Growing Dividend: SCCO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94.3%), SCCO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SCCO's dividends in 3 years are forecast to be covered by earnings (81.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.0yrs
Average management tenure
CEO
Oscar González Rocha (81yo)
15.67yrs
Tenure
US$1,639,870
Compensation
Mr. Oscar González Rocha serves as an Executive President of Americas Mining Corporation - Mining Division at Grupo México S.A.B. de C.V. He has been the Chief Executive Officer and President of Southern C ...
CEO Compensation Analysis
Compensation vs Market: Oscar's total compensation ($USD1.64M) is below average for companies of similar size in the US market ($USD11.64M).
Compensation vs Earnings: Oscar's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.67yrs | US$1.64m | 0.017% $5.0m | |
| VP of Finance | 7.17yrs | US$343.32k | no data | |
| Comptroller & Principal Accounting Officer | no data | US$212.10k | no data | |
| Vice President of Exploration | 6.92yrs | US$334.02k | no data | |
| Secretary | 4.17yrs | US$303.20k | no data | |
| Manager of Financial Planning & Investor Relations | no data | no data | no data | |
| General Counsel & Assistant Secretary | no data | no data | no data |
7.0yrs
Average Tenure
59.5yo
Average Age
Experienced Management: SCCO's management team is seasoned and experienced (7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 15.67yrs | US$1.64m | 0.017% $5.0m | |
| Chairman of the Board | 20.5yrs | US$110.42k | 0.44% $126.5m | |
| Special Independent Director | 18yrs | US$157.42k | 0.0031% $890.2k | |
| Independent Director | 9.92yrs | US$182.42k | no data | |
| Director | 20.58yrs | US$110.42k | 0.0014% $391.5k | |
| Director | 13.67yrs | US$110.42k | no data | |
| Special Independent Director | 16.33yrs | US$110.42k | 0.0023% $655.3k | |
| Special Independent Director | 16.25yrs | US$182.42k | 0.0011% $330.6k | |
| Independent Director | 2.17yrs | US$110.42k | 0.00041% $118.9k | |
| Independent Director | 2.92yrs | US$110.42k | no data |
16.3yrs
Average Tenure
66yo
Average Age
Experienced Board: SCCO's board of directors are seasoned and experienced ( 16.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCCO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$28.997b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PCU | DUSE (Dusseldorf Stock Exchange) | Yes | Common Stock | DE | EUR | Jan 1996 |
| SCCO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1996 |
| SCCO | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Jan 1996 |
| PCU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1996 |
| SCCO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1996 |
| 0L8B | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 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, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and three SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. The company has interests in 37,622 hectares of exploration concessions in Peru; 147,974 hectares of exploration concessions in Mexico; 63,453 hectares of exploration concessions in Argentina; 42,615 hectares of exploration concessions in Chile; and 7,298 hectares of exploration concessions in Ecuador. Southern Copper Corporation was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/03 02:59 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.