Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $86.81B
• Dividend Yield: 2.67%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.13
• Revenue Growth: 13.01%
• EPS Growth: 31.25%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 1.21
• Shares Outstanding: 812,189,000
• 10 Day Avg. Volume: 1,480,434
• 30 Day Avg. Volume: 1,156,813
• 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: 0.98
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 14.18
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $96.97
• Price Target Upside: -9.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $107.00 ▼(-0.24% Downside)

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

Strong Profitability

High profit margins indicate efficient cost management and strong pricing power, supporting long-term financial stability and shareholder returns.

Cash Flow Generation

Robust cash flow generation enhances the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Shareholder Support

Strong shareholder support reflects confidence in management and strategic direction, which can lead to sustained governance and operational success.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth may signal market challenges or competitive pressures, potentially impacting future profitability and growth prospects.

Operational Challenges

Operational challenges, such as declining revenue growth, may require strategic adjustments to maintain long-term competitiveness and financial health.

Leverage Management

While leverage is currently manageable, any increase could strain cash flows and limit financial flexibility, affecting long-term strategic initiatives.

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 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: 107.26
• 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 107.26 is above the 20-day moving average (MA) of 101.31, above the 50-day MA of 97.77, and above the 200-day MA of 92.57, indicating a bullish trend. The MACD of 3.10 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.06 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	64.74B	34.15	10.50%	1.33%	5.70%	-0.52%
NEM	78 Outperform	86.44B	14.13	19.55%	1.28%	39.02%	0.00%
VALE	78 Outperform	46.51B	9.04	17.53%	7.39%	-12.89%	-46.86%
BHP	77 Outperform	135.12B	14.98	18.89%	4.16%	-7.86%	14.17%
RIO	75 Outperform	106.75B	9.92	20.91%	6.01%	-0.44%	-4.20%
SCCO	70 Outperform	$86.81B	24.36	39.07%	2.67%	13.01%	31.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.