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

7.8%

NYSE:SCCO

5.7%

US Metals and Mining

1.2%

US Market


1 Year Return

-13.7%

NYSE:SCCO

-7.2%

US Metals and Mining

1.7%

US Market

SCCO underperformed the Metals and Mining industry which returned -7.2% over the past year.

SCCO underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

SCCOIndustryMarket
7 Day7.8%5.7%1.2%
30 Day19.4%9.4%4.9%
90 Day-4.2%5.2%3.7%
1 Year-8.4%-13.7%-4.5%-7.2%3.9%1.7%
3 Year55.3%40.9%17.5%11.3%47.2%37.7%
5 Year27.1%13.0%-8.1%-15.1%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

18.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Southern Copper's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Southern Copper's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Southern Copper is overvalued based on earnings compared to the US Metals and Mining industry average.

Southern Copper is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Southern Copper is poor value based on expected growth next year.


Price Based on Value of Assets

Southern Copper is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Southern Copper's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Southern Copper's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

Southern Copper's revenue growth is positive but not above the United States of America market average.

Southern Copper's earnings growth is positive but not above the United States of America market average.

Southern Copper's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Southern Copper is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Southern Copper's year on year earnings growth rate has been positive over the past 5 years.

Southern Copper's 1-year earnings growth exceeds its 5-year average (46.1% vs 0.4%)

Southern Copper's earnings growth has exceeded the US Metals and Mining industry average in the past year (46.1% vs 27.3%).


Return on Equity

Southern Copper has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Southern Copper used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Southern Copper has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Southern Copper's financial position?


Financial Position Analysis

Southern Copper is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Southern Copper's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Southern Copper's level of debt (87.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (70.4% vs 87.8% today).

Debt is well covered by operating cash flow (32.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.40%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Southern Copper's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Southern Copper's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Oscar González Rocha (80yo)

14.9yrs

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

Oscar's remuneration is lower than average for companies of similar size in United States of America.

Oscar's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

61yo

Average Age

The average tenure for the Southern Copper management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.5yrs

Average Tenure

65.5yo

Average Age

The average tenure for the Southern Copper board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Oscar González Rocha (80yo)

    President

    • Tenure: 14.9yrs
    • Compensation: US$1.50m
  • Julián Jorge Lazalde Psihas (51yo)

    Secretary

    • Tenure: 3.4yrs
    • Compensation: US$301.17k
  • Raul Jacob Ruisanchez (61yo)

    VP of Finance

    • Tenure: 6.4yrs
    • Compensation: US$358.38k
  • Edgard Corrales Aguilar (63yo)

    Vice President of Exploration

    • Tenure: 6.2yrs
    • 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: 14.9yrs
    • Compensation: US$1.50m
  • Germán Larrea Mota-Velasco (66yo)

    Chairman of the Board

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

    Special Independent Director

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

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$198.31k
  • Xavier Garcia de Quevedo Topete (72yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$133.31k
  • Alfredo de Jesús Casar Pérez (65yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: US$133.31k
  • Carlos Ruiz Sacristán (69yo)

    Special Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$133.31k
  • Luis Miguel Palomino Bonilla (59yo)

    Special Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$210.31k
  • Vicente Ariztegui Andreve (65yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$133.31k
  • Rafael Mac Gregor Anciola (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • 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$27.598b
  • 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
SPCCPI1BVL (Bolsa de Valores de Lima)SHS INVERSION1PEPENFeb 1993
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 Analysis2019/09/15 00:08
End of Day Share Price2019/09/13 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.