Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $78.55B
• Dividend Yield: 2.96%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.14
• Revenue Growth: 13.01%
• EPS Growth: 31.25%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Copper
• EPS (TTM): 1.21
• Shares Outstanding: 812,189,000
• 10 Day Avg. Volume: 885,258
• 30 Day Avg. Volume: 1,303,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 14.18
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $96.86
• Price Target Upside: 0.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $107.00 ▲(11.35% Upside)

Southern Copper's strong financial performance and positive technical indicators are the most significant factors driving the score. The valuation is reasonable, with a supportive dividend yield. The absence of earnings call data limits further insights.

Positive Factors

Cost Management

Copper cash costs after by-products were ahead of the consensus, reflecting better cost control.

Growth Prospects

Progress on the development of the large Tia Maria project could unlock material value for the company.

Operational Performance

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

Negative Factors

Environmental and Health 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.

Southern Copper Business Overview & Revenue Model

Company Description

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 two operating 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 82,134 hectares of exploration concessions in Peru; 493,533 hectares of exploration concessions in Mexico; 246,346 hectares of exploration concessions in Argentina; 29,888 hectares of exploration concessions in Chile; and 7,299 hectares of exploration concessions in Ecuador. Southern Copper Corporation was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation operates as a subsidiary of Americas Mining Corporation.

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 profitability and cash flow generation, with efficient operational management. Despite challenges in revenue growth, robust margins and effective leverage management provide a solid financial foundation.

Income Statement

Southern Copper's income statement shows strong profitability with a gross profit margin of 50.55% and a net profit margin of 30.37% for TTM. However, the revenue growth rate has declined by 56.3% in the TTM period, indicating potential challenges in revenue generation. Despite this, the company maintains robust EBIT and EBITDA margins of 50.89% and 58.10%, respectively, reflecting efficient operational management.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.75, showing manageable leverage. The return on equity is impressive at 38.36%, suggesting effective use of equity to generate profits. The equity ratio stands at 51.05%, indicating a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 3.38, indicating strong cash generation relative to net income. Free cash flow has grown by 3.31% in the TTM period, and the free cash flow to net income ratio is 0.77, reflecting efficient cash utilization. These metrics suggest a strong cash flow position, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.89B	11.43B	9.90B	10.05B	10.93B	7.98B
Gross Profit	6.01B	5.69B	4.32B	4.56B	6.19B	3.25B
EBITDA	6.91B	6.54B	5.12B	5.38B	6.86B	3.89B
Net Income	3.61B	3.38B	2.43B	2.64B	3.40B	1.57B
Balance Sheet
Total Assets	19.55B	18.71B	16.73B	17.28B	18.30B	16.95B
Cash, Cash Equivalents and Short-Term Investments	4.01B	3.50B	1.75B	2.28B	3.49B	2.59B
Total Debt	7.45B	7.00B	7.03B	7.10B	7.46B	7.52B
Total Liabilities	9.50B	9.48B	9.24B	9.13B	10.09B	9.67B
Stockholders Equity	9.98B	9.17B	7.42B	8.08B	8.15B	7.22B
Cash Flow
Free Cash Flow	3.46B	3.39B	2.56B	1.85B	3.40B	2.19B
Operating Cash Flow	4.50B	4.42B	3.57B	2.80B	4.29B	2.78B
Investing Cash Flow	-1.38B	-673.30M	-1.40B	-666.80M	-972.90M	-915.80M
Financing Cash Flow	-1.65B	-1.65B	-3.10B	-3.01B	-2.48B	-1.56B

Southern Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.09
• 50DMA: Negative
• 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 96.09 is above the 20-day moving average (MA) of 95.54, below the 50-day MA of 96.51, and above the 200-day MA of 92.08, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.52 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
FCX	81 Outperform	$63.71B	33.23	10.70%	1.35%	5.70%	-0.52%
NEM	79 Outperform	$79.56B	13.00	20.26%	1.34%	39.02%	―
BHP	77 Outperform	$142.85B	15.74	19.51%	4.39%	-7.86%	14.17%
RIO	75 Outperform	$106.59B	9.90	18.18%	5.92%	-0.44%	-4.20%
VALE	74 Outperform	$43.65B	8.49	13.49%	7.79%	-12.89%	-46.86%
SCCO	70 Outperform	$78.55B	21.61	39.07%	2.96%	13.01%	31.25%
Sector *	61 Neutral	$10.32B	6.25	0.71%	2.93%	3.36%	-36.41%

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.