Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $82.43B
• Dividend Yield: 2.7%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.14
• Revenue Growth: 23.23%
• EPS Growth: 53.35%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Copper
• EPS (TTM): 1.18
• Shares Outstanding: 804,068,360
• 10 Day Avg. Volume: 1,933,386
• 30 Day Avg. Volume: 1,325,148
• PEG Ratio: 3.72
• Price to Book (P/B): 7.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.42
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 13.06
• Enterprise Value/Ebitda: 3.16
• 1Y Price Target: $86.16
• Price Target Upside: -15.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $115.00 ▲(12.18%Upside)

Southern Copper's strong financial performance and positive technical indicators are offset by concerns of overvaluation. While shareholder sentiment is positive, the financials and technicals play a more significant role in the stock's current evaluation.

Positive Factors

Copper Production and Costs

Copper shipments of 244kt were 2% higher than the VA consensus of 239kt and above our 239kt forecast.

Growth Prospects

Southern Copper aims to grow over the next decade with key projects under construction and progressing, indicating a commitment to long-term growth.

Operational Performance

The operational strength of the company and progress in its Tia Maria copper mine development in Peru were confirmed.

Negative Factors

Environmental Remediation

Grupo Mexico will be expected to assume the remediation of the environmental and health issues caused by the Buenavista mine copper sulfate spill.

Financial Performance

Cash from operations of US$721m missed the VA consensus of $899m and our US$950m estimate on higher working capital needs.

Valuation Concerns

The valuation is considered unattractive with an EV/EBITDA ratio of 11.3x and a free cash flow yield of about 4% for 2025.

Southern Copper Business Overview & Revenue Model

Company Description

Southern Copper Corporation (SCCO) is a leading integrated copper producer with mining operations spanning Peru and Mexico. The company is a significant player in the metals and mining sector, focusing on the extraction, processing, and sale of copper, along with by-products such as molybdenum, zinc, and precious metals. Southern Copper's operations include open-pit and underground mines, smelters, and refineries, making it one of the largest copper producers globally.

How the Company Makes Money

Southern Copper Corporation generates revenue primarily through the sale of copper, which is extracted from its extensive mining operations in Peru and Mexico. The company processes the mined ore into copper concentrate and cathodes, which are then sold to industrial manufacturers and commodity traders worldwide. Besides copper, SCCO also earns revenue from by-products like molybdenum, zinc, silver, and gold, which are extracted during the copper mining process. The company benefits from long-term contracts and strategic partnerships with major industrial clients, providing a stable revenue stream. Additionally, Southern Copper may engage in hedging activities to manage commodity price fluctuations, further supporting its earnings.

Southern Copper Financial Statement Overview

Summary

Southern Copper showcases strong financial health with robust revenue growth, high profitability margins, and efficient cash flow management. The balance sheet is well-managed with moderate leverage. However, a dip in free cash flow growth slightly tempers the overall score.

Income Statement

Southern Copper has demonstrated robust revenue growth, as evidenced by a 20.74% increase in total revenue from 2023 to the TTM period ending March 2025. The company maintains strong profitability with a net profit margin of 30.00% and a gross profit margin of 63.60% for TTM. The EBIT and EBITDA margins are also impressive at 49.34% and 55.95%, respectively. These metrics indicate effective cost management and strong operational efficiency.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.82 for TTM, indicating moderate leverage. The return on equity stands at 37.47%, showcasing strong profitability relative to shareholder equity. However, the equity ratio of 48.34% suggests a balanced asset financing strategy, with potential for improving the equity portion.

Cash Flow

Southern Copper exhibits strong cash flow generation, with a free cash flow growth rate of -17.06% from 2024 to TTM due to capital expenditures. The operating cash flow to net income ratio is 1.25, indicating efficient cash conversion. The free cash flow to net income ratio of 1.02 highlights effective cash management, though there's a slight decrease in free cash flow compared to the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.96B	11.43B	9.90B	10.05B	10.93B	7.98B
Gross Profit	6.05B	5.75B	4.32B	4.60B	6.23B	3.28B
EBITDA	6.88B	6.54B	5.12B	5.23B	6.86B	3.89B
Net Income	3.59B	3.38B	2.43B	2.64B	3.40B	1.57B
Balance Sheet
Total Assets	19.79B	18.71B	16.73B	17.28B	18.30B	16.67B
Cash, Cash Equivalents and Short-Term Investments	4.33B	3.50B	1.75B	2.28B	3.49B	2.59B
Total Debt	7.97B	7.00B	7.03B	7.10B	7.39B	7.45B
Total Liabilities	10.15B	9.48B	9.24B	9.13B	10.09B	9.39B
Stockholders Equity	9.57B	9.17B	7.42B	8.08B	8.15B	7.22B
Cash Flow
Free Cash Flow	3.35B	3.39B	2.56B	1.85B	3.40B	2.19B
Operating Cash Flow	4.48B	4.42B	3.57B	2.80B	4.29B	2.78B
Investing Cash Flow	-1.02B	-673.30M	-1.40B	-666.80M	-972.90M	-915.80M
Financing Cash Flow	-592.20M	-1.65B	-3.10B	-3.01B	-2.48B	-1.56B

Southern Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCCO, the sentiment is Positive. The current price of 102.51 is above the 20-day moving average (MA) of 95.95, above the 50-day MA of 92.72, and above the 200-day MA of 96.13, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 86.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCCO.

Southern Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEM	81 Outperform	$63.17B	12.74	16.64%	1.76%	48.69%	―
RIO	77 Outperform	$100.02B	8.25	20.93%	7.66%	-0.81%	14.59%
FCX	74 Outperform	$63.01B	36.21	10.10%	1.37%	2.84%	6.35%
BHP	71 Outperform	$124.41B	10.85	26.13%	4.08%	-3.15%	54.08%
VALE	70 Neutral	$39.32B	6.66	15.98%	15.30%	-9.59%	-25.35%
SCCO	69 Neutral	$82.43B	22.89	41.93%	2.70%	23.23%	53.35%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.17%	-4.78%	-43.21%

Southern Copper Corporate Events

Southern Copper’s Annual Meeting Highlights Shareholder Support

On May 23, 2025, Southern Copper Corporation held its Annual Meeting of Stockholders, where 97.05% of the eligible shares were voted. Key decisions included the election of nine directors, approval of amendments to the Directors’ Stock Award Plan, ratification of the selection of independent accountants, and a non-binding advisory vote on executive compensation, reflecting strong shareholder engagement and support for the company’s governance and strategic decisions.

The most recent analyst rating on (SCCO) stock is a Hold with a $100.26 price target. To see the full list of analyst forecasts on Southern Copper stock, see the SCCO Stock Forecast page.