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 Analysis

Established dividend payer 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

2.4%

SCCO

0.4%

US Metals and Mining

5.3%

US Market


1 Year Return

-30.3%

SCCO

-27.9%

US Metals and Mining

-10.7%

US Market

Return vs Industry: SCCO underperformed the US Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: SCCO underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

SCCOIndustryMarket
7 Day2.4%0.4%5.3%
30 Day-19.9%-17.2%-13.6%
90 Day-34.1%-31.3%-19.8%
1 Year-27.1%-30.3%-25.8%-27.9%-8.9%-10.7%
3 Year-12.6%-22.1%-23.6%-28.0%15.5%8.0%
5 Year8.9%-4.6%-2.6%-10.6%35.2%20.4%

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?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCCO ($27.62) is trading below our estimate of fair value ($43.63)

Significantly Below Fair Value: SCCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCCO is poor value based on its PE Ratio (14.4x) compared to the Metals and Mining industry average (8.4x).

PE vs Market: SCCO is poor value based on its PE Ratio (14.4x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SCCO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SCCO is overvalued based on its PB Ratio (3.1x) compared to the US Metals and Mining industry average (1.1x).


Next Steps

Future Growth

How is Southern Copper forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCCO's forecast earnings growth (11.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SCCO's earnings (11.2% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: SCCO's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SCCO's revenue (2.9% 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 (22.6%)


Next Steps

Past Performance

How has Southern Copper performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCCO has high quality earnings.

Growing Profit Margin: SCCO's current net profit margins (20.4%) are lower than last year (21.7%).


Past Earnings Growth Analysis

Earnings Trend: SCCO's earnings have grown by 8.2% 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 (-3.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.9%).


Return on Equity

High ROE: Whilst SCCO's Return on Equity (21.75%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Southern Copper's financial position?


Financial Position Analysis

Short Term Liabilities: SCCO's short term assets ($4.2B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SCCO's short term assets ($4.2B) do not cover its long term liabilities ($8.1B).


Debt to Equity History and Analysis

Debt Level: SCCO's debt to equity ratio (101.2%) is considered high.

Reducing Debt: SCCO's debt to equity ratio has increased from 71.7% to 101.2% over the past 5 years.

Debt Coverage: SCCO's debt is well covered by operating cash flow (27.5%).

Interest Coverage: SCCO's interest payments on its debt are well covered by EBIT (8.6x 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 0.6x debt).


Next Steps

Dividend

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

5.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SCCO's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: SCCO's dividend (5.79%) is in the top 25% of dividend payers in the US market (5.4%)


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: At its current payout ratio (83.3%), 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 (76.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Oscar González Rocha (81yo)

15.5s

Tenure

US$1,504,764

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 ($USD1.50M) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Oscar González Rocha
President15.5yrsUS$1.50m0.017% $3.8m
Raul Jacob Ruisanchez
VP of Finance7yrsUS$358.38kno data
Lina Vingerhoets Vilca
Comptroller & Principal Accounting Officerno dataUS$209.92kno data
Edgard Corrales Aguilar
Vice President of Exploration6.75yrsUS$340.67kno data
Julián Jorge Lazalde Psihas
Secretary4yrsUS$301.17kno data
Victor Pedraglio
Manager of Financial Planning & Investor Relationsno datano datano data
Andres Ferrero Ghislieri
General Counsel & Assistant Secretaryno datano datano data

6.9yrs

Average Tenure

59.5yo

Average Age

Experienced Management: SCCO's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oscar González Rocha
President15.5yrsUS$1.50m0.017% $3.8m
Germán Larrea Mota-Velasco
Chairman of the Board20.33yrsUS$133.31k0.44% $94.9m
Gilberto Pérezalonso Cifuentes
Special Independent Director17.83yrsUS$181.31k0.0031% $668.3k
Enrique Luis Castillo Sánchez Mejorada
Independent Director9.75yrsUS$198.31kno data
Xavier Garcia de Quevedo Topete
Director20.42yrsUS$133.31k0.0014% $293.9k
Alfredo de Jesús Casar Pérez
Director13.5yrsUS$133.31k0.0014% $293.9k
Carlos Ruiz Sacristán
Special Independent Director16.17yrsUS$133.31k0.0023% $492.0k
Luis Miguel Palomino Bonilla
Special Independent Director16.08yrsUS$210.31k0.0011% $248.2k
Vicente Ariztegui Andreve
Independent Director2yrsUS$133.31k0.00041% $89.3k
Rafael Mac Gregor Anciola
Independent Director2.75yrsUS$133.31kno data

16.1yrs

Average Tenure

66yo

Average Age

Experienced Board: SCCO's board of directors are seasoned and experienced ( 16 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$21.769b
  • 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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:27
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.