Southern Copper Corp (SCCO) stock analysis

P/E below its 5-year median

Southern Copper's P/E of 22.5 is below its own 5-year median of 22.8.

P/E above the industry

Southern Copper's P/E of 22.5 is above the Materials median of 21.9.

EV/EBITDA above its 5-year median

Southern Copper's EV/EBITDA of 13.3 is above its 5-year median of 12.5.

P/B above the industry

Southern Copper's price-to-book of 10.78 is above the Materials median of 2.40.

Trading above fair value

The share price of $172.61 is above our fair value estimate of $158.29.

Margin of safety under 20%

The price is 9.0% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 10.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 15.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 38.7% over the last twelve months; the Materials median is 11.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 65.2% over the last twelve months, against 58.7% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 49.0%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 59.2% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 90.6% five years ago to 59.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 92.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 4.31 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.87; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Southern Copper paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Southern Copper yields 2.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 58.8% of free cash flow.