Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $112.73B
• Dividend Yield: 2.23%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.14
• Revenue Growth: 12.70%
• EPS Growth: 25.52%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 1.35
• Shares Outstanding: 812,189,000
• 10 Day Avg. Volume: 1,403,796
• 30 Day Avg. Volume: 1,924,885
• PEG Ratio: 0.57
• Price to Book (P/B): 7.60
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 20.54
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 8.33
• Enterprise Value/Gross Profit: 15.69
• Enterprise Value/Ebitda: 14.25
• 1Y Price Target: $119.75
• Price Target Upside: -13.72% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 78 Outperform
• Price Target: $161.00 ▲(15.99% Upside)

Southern Copper's strong financial performance and positive earnings call highlight its robust profitability and operational efficiency. The bullish technical indicators support the stock's upward momentum, though valuation concerns and overbought technical signals may limit short-term gains. The company's strategic focus on organic growth and sustainability further strengthens its long-term outlook.

Positive Factors

Record Financial Performance

Record-breaking financial performance indicates strong operational execution and market demand, supporting long-term growth potential.

Cost Efficiency

Low cash costs enhance profitability and provide a competitive edge, ensuring sustainable margins even in volatile markets.

Sustainability Achievements

Improved sustainability ratings reflect strong ESG practices, which can attract investment and reduce regulatory risks.

Negative Factors

Decrease in Copper Production

Declining copper production could impact revenue and market share, posing challenges for future growth if not addressed.

Challenges in Operations

Operational challenges in key regions may hinder production efficiency and require strategic adjustments to maintain output.

Increased Operating Costs

Rising operating costs can pressure margins and reduce profitability, necessitating cost management strategies to sustain earnings.

Southern Copper Business Overview & Revenue Model

Company Description

Southern Copper Corporation (SCCO) is a leading mining company primarily engaged in the production of copper, molybdenum, zinc, and silver. Headquartered in Phoenix, Arizona, SCCO operates mining, smelting, and refining facilities in Peru and Mexico, two of the largest copper-producing countries in the world. The company is a subsidiary of Grupo Mexico and is known for its commitment to sustainable mining practices and operational efficiency. Southern Copper's core products include high-quality copper cathodes and refined copper, which are essential materials for various industries, including construction, electronics, and renewable energy.

How the Company Makes Money

Southern Copper generates revenue primarily through the sale of copper and by-products such as molybdenum, zinc, and silver. The company's primary revenue stream comes from the sale of copper cathodes, which are sold to both domestic and international markets. Additionally, SCCO benefits from its vertically integrated operations that include mining, smelting, and refining, allowing for greater control over production costs and quality. The global demand for copper, driven by its application in electric vehicles, renewable energy solutions, and infrastructure development, further enhances SCCO's revenue potential. The company also engages in strategic partnerships and joint ventures to expand its mining operations and access new resources, contributing to its overall earnings. Market fluctuations in commodity prices, particularly copper, and operational efficiency are significant factors that impact SCCO's revenue and profitability.

Southern Copper Financial Statement Overview

Summary

Southern Copper demonstrates strong financial health with robust profitability and efficient operations. The company shows improving revenue growth and margins, prudent leverage management, and strong cash generation and conversion.

Income Statement

Southern Copper shows strong profitability with a consistent increase in gross and net profit margins over the years. The TTM data indicates a gross profit margin of 53.09% and a net profit margin of 30.98%, both of which are robust. Revenue growth is positive at 3.76% in the TTM, indicating a recovery from previous declines. EBIT and EBITDA margins are also strong, reflecting efficient operations.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.70 in the TTM, showing a decrease from previous years, which indicates improved leverage management. Return on equity is high at 39.01%, demonstrating effective use of equity to generate profits. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

Cash flow metrics are strong, with a free cash flow growth rate of 10.59% in the TTM, indicating healthy cash generation. The operating cash flow to net income ratio is 2.72, suggesting good cash conversion efficiency. The free cash flow to net income ratio is 0.83, indicating that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.33B	11.43B	9.90B	10.05B	10.93B	7.98B
Gross Profit	6.55B	5.69B	4.32B	4.56B	6.19B	3.25B
EBITDA	7.21B	6.54B	5.12B	5.38B	6.86B	3.89B
Net Income	3.82B	3.38B	2.43B	2.64B	3.40B	1.57B
Balance Sheet
Total Assets	20.33B	18.71B	16.73B	17.28B	18.30B	16.95B
Cash, Cash Equivalents and Short-Term Investments	4.53B	3.50B	1.75B	2.28B	3.49B	2.59B
Total Debt	7.35B	7.00B	7.03B	7.10B	7.46B	7.52B
Total Liabilities	9.81B	9.48B	9.24B	9.13B	10.09B	9.67B
Stockholders Equity	10.45B	9.17B	7.42B	8.08B	8.15B	7.22B
Cash Flow
Free Cash Flow	3.83B	3.39B	2.56B	1.85B	3.40B	2.19B
Operating Cash Flow	4.62B	4.42B	3.57B	2.80B	4.29B	2.78B
Investing Cash Flow	-1.40B	-673.30M	-1.40B	-666.80M	-972.90M	-915.80M
Financing Cash Flow	-1.83B	-1.65B	-3.10B	-3.01B	-2.48B	-1.56B

Southern Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 138.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 138.8 is above the 20-day moving average (MA) of 132.18, above the 50-day MA of 117.62, and above the 200-day MA of 98.07, indicating a bullish trend. The MACD of 5.61 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 76.43 is Neutral, 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	―	$88.36B	12.59	22.84%	1.12%	26.25%	―
RIO	―	$122.85B	11.43	18.18%	5.19%	-0.44%	-4.20%
SCCO	―	$112.73B	29.59	39.45%	2.23%	12.70%	25.52%
BHP	―	$144.35B	16.07	19.51%	3.80%	-7.86%	14.17%
VALE	―	$51.82B	10.04	13.49%	6.63%	-12.89%	-46.86%
FCX	―	$59.91B	29.56	11.37%	1.44%	3.44%	―
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Southern Copper Corporate Events

Southern Copper Corp Reports Record Q3 Earnings

Southern Copper Corp, a major player in the mining industry, specializes in the production of copper and other valuable metals, operating primarily in Mexico and Peru.

Southern Copper Reports Strong Earnings Amid Sales Dip

Southern Copper Corporation, a major player in the mining industry, is one of the largest integrated copper producers globally, with operations in Mexico and Peru and exploration activities in Argentina and Chile.