Southern Copper (SCCO) AI Stock Analysis

• Market Cap: $77.25B
• Dividend Yield: 2.75%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.11
• Revenue Growth: 23.23%
• EPS Growth: 53.35%
• Country: US
• Employees: 16,133
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Copper
• EPS (TTM): 1.18
• Shares Outstanding: 804,068,360
• 10 Day Avg. Volume: 1,033,581
• 30 Day Avg. Volume: 1,062,243
• PEG Ratio: 3.55
• Price to Book (P/B): 7.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.44
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 12.52
• Enterprise Value/Ebitda: 3.03
• 1Y Price Target: $83.29
• Price Target Upside: -12.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $104.00 ▲(8.74%Upside)

Southern Copper's strong financial performance, particularly its robust revenue growth and profitability margins, are key strengths driving the score. While technical and valuation aspects are relatively neutral, strong shareholder support at corporate events provides a positive sentiment boost.

Positive Factors

Cost Management

Copper cash costs before by-products of $2.05/lb were below consensus of $2.09/lb.

Financial Flexibility

The company ended with a healthy balance sheet and raised US$1bn in a bond, providing ample financial flexibility.

Operational Performance

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

Negative Factors

Earnings Performance

SCCO reported 4Q24 EBITDA of $1.5bn, below our estimates and Bloomberg consensus.

Financial Performance

Revenues came in lower than expected due to light copper sales volume, despite in-line production.

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 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 Corporation generates revenue primarily through the sale of copper and other metals that it extracts and processes from its mining operations. The company's primary revenue stream comes from its large-scale production of copper, which is sold to a variety of customers, including industrial manufacturers, construction companies, and electronics producers. SCCO's operations benefit from economies of scale, enabling it to maintain competitive production costs. Additionally, SCCO capitalizes on the sale of byproducts such as molybdenum, zinc, and silver, which contribute significantly to its earnings. The company's strategic location of mining operations in resource-rich regions and long-term contracts with major customers and governments also play a crucial role in stabilizing and enhancing its revenue streams.

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 a moderate level of leverage. While the free cash flow growth rate has dipped, the company maintains strong operational cash flow conversion, positioning it well for future growth and stability.

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
	EBIT
5.90B	5.55B	4.19B	4.44B	6.07B	3.12B
	EBITDA
6.88B	6.54B	5.12B	5.23B	6.86B	3.89B
	Net Income Common Stockholders
3.59B	3.38B	2.43B	2.64B	3.40B	1.57B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.58B	3.50B	1.75B	2.28B	3.49B	2.59B
	Total Assets
16.79B	18.71B	16.73B	17.28B	18.30B	16.67B
	Total Debt
7.01B	7.00B	7.03B	7.10B	7.39B	7.45B
	Net Debt
5.76B	3.74B	5.88B	5.03B	4.39B	5.27B
	Total Liabilities
9.18B	9.48B	9.24B	9.13B	10.09B	9.39B
	Stockholders Equity
7.54B	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: 95.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 95.64 is above the 20-day moving average (MA) of 92.35, above the 50-day MA of 89.70, and below the 200-day MA of 96.13, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.40 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	$60.67B	12.24	16.64%	1.83%	48.69%	―
BHP	77 Outperform	$125.16B	11.12	26.13%	4.92%	-3.15%	54.08%
RIO	77 Outperform	$100.93B	8.32	20.93%	6.74%	-0.81%	14.59%
SCCO	76 Outperform	$77.25B	21.45	41.93%	2.75%	23.23%	53.35%
FCX	74 Outperform	$59.88B	34.41	10.10%	1.44%	2.84%	6.35%
VALE	73 Outperform	$40.62B	6.99	15.98%	7.86%	-9.59%	-25.35%
Sector *	51 Neutral	$2.03B	-1.13	-21.36%	3.65%	2.87%	-30.54%

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.