Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $105.76B
• Dividend Yield: 2.31%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.20
• Revenue Growth: 12.70%
• EPS Growth: 25.51%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 1.34
• Shares Outstanding: 819,095,460
• 10 Day Avg. Volume: 1,277,471
• 30 Day Avg. Volume: 1,414,849
• 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: 0.97
• Enterprise Value/Revenue: 8.34
• Enterprise Value/Gross Profit: 15.70
• Enterprise Value/Ebitda: 14.27
• 1Y Price Target: $119.75
• Price Target Upside: -9.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 5.13
• Revenue Forecast (FY): $12.69B

• Rating: 73 Outperform
• Price Target: $138.00 ▲(3.74% Upside)

Southern Copper's strong financial performance and positive earnings call are the primary drivers of its score. However, mixed technical indicators and a high P/E ratio suggest caution. The decrease in copper production and increased operating costs are notable risks, but the company's optimism about future growth and market conditions provides a balanced 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 integrated copper producer, primarily operating in the mining sector. The company has significant operations in Peru and Mexico, where it mines, processes, and sells copper and other minerals. SCCO's core products include copper cathodes, copper rod, and by-products such as molybdenum and zinc. With a strong focus on sustainability and efficiency, Southern Copper plays a vital role in the global copper market, serving various industries including construction, electronics, and renewable energy.

How the Company Makes Money

Southern Copper generates revenue primarily through the sale of copper and its by-products. The company operates a vertically integrated model, which allows it to control the entire production process from mining to refining. Key revenue streams include the sale of copper cathodes, which are sold to various domestic and international customers, and copper rod, which is used in electrical applications. Additionally, SCCO earns revenue from the sale of molybdenum and zinc, which are generated as by-products of copper production. The company's revenue is significantly impacted by global copper prices, which can fluctuate due to supply and demand dynamics. Strategic partnerships with other mining companies and customers also enhance its market reach and operational efficiency, contributing to its overall earnings.

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	7.43B	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	3.48B	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: 133.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 133.03 is above the 20-day moving average (MA) of 131.31, above the 50-day MA of 126.94, and above the 200-day MA of 100.39, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 58.72 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	81 Outperform	$98.78B	14.07	22.84%	1.10%	26.25%	―
RIO	80 Outperform	$123.27B	11.37	18.18%	5.16%	-0.44%	-4.20%
VALE	79 Outperform	$53.30B	9.87	13.65%	6.41%	-8.49%	-41.69%
BHP	77 Outperform	$138.68B	15.46	19.51%	3.95%	-7.86%	14.17%
SCCO	73 Outperform	$105.76B	27.76	39.45%	2.31%	12.70%	25.51%
FCX	67 Neutral	$60.52B	29.64	11.33%	1.42%	2.83%	3.39%
Sector *	61 Neutral	$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.