SOUTHERN COPPER CORP/ (SCCO) Stock Analysis
SOUTHERN COPPER CORP/ (SCCO) Stock Analysis
Analysis from 10-Q filed 2025-10-31. Data as of Q4 2025.
Overall Grade: F (Concerning)
SOUTHERN COPPER CORP/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 26.4% | Above industry average |
| FCF Margin | 25.5% | Strong cash generation |
| Debt/Equity | 0.6x | Moderate leverage |
Investment Thesis: Strong return on invested capital of 26.4% suggests durable competitive advantages and efficient capital allocation.
Explore SOUTHERN COPPER CORP/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: SOUTHERN COPPER CORP/ earns 26.4% ROIC, Top 25% in Materials
SOUTHERN COPPER CORP/'s trailing-twelve-month ROIC of 26.4% ranks Top 25% in Materials companies (sector median: 4.3%), driven by NOPAT margin of 33.2% combined with asset turnover of 0.7x. Source: 10-Q filed 2025-10-31. Gross margin of 60.1% with operating margin at 52.2% reflects strong pricing power.
| Metric | SCCO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.4% | Excellent | Above sector median of 4.3% |
| Return on Equity (ROE) | 43.2% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 60.1% | Excellent | Strong pricing power |
| Operating Margin | 52.2% | Excellent | Efficient operations |
Cash Flow: SOUTHERN COPPER CORP/ generates $3.4B FCF at 25.5% margin, positive NaN/8 quarters
SOUTHERN COPPER CORP/ generated $3.4B in free cash flow (TTM), a 25.5% FCF margin, a margin that ranks Top 5% in Materials. Operating cash flow exceeds net income by 1.1x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-31.
| Metric | SCCO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 25.5% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $3.4B | Good | Positive cash generation |
| OCF/Net Income | 1.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: SOUTHERN COPPER CORP/ at 0.6x leverage
SOUTHERN COPPER CORP/'s debt-to-equity ratio of 0.6x reflects moderate leverage. Total debt of $6.8B offset by $4.9B in cash. Source: 10-Q filed 2025-10-31.
| Metric | SCCO | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.6x | Good | Moderate leverage |
| Net Cash Position | $-1.8B | Warning | Net debt position |
Valuation: SOUTHERN COPPER CORP/ trades at 27.2x earnings
SOUTHERN COPPER CORP/ trades at a P/E of 27.2x. Free cash flow yield of 2.9% reflects market expectations for growth.
| Metric | SCCO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 27.2x | Adequate | Premium valuation |
| EV/Sales | 9.0x | Adequate | Growth premium priced in |
| FCF Yield | 2.9% | Adequate | Lower cash yield |
| Dividend Yield | 2.2% | Adequate | Growth focus over income |
Capital Allocation: SOUTHERN COPPER CORP/ returns 2.2% shareholder yield
SOUTHERN COPPER CORP/'s total shareholder yield is 2.2% (dividends 2.2% + buybacks). Source: 10-Q filed 2025-10-31.
| Metric | SCCO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.2% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $2.5B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.4% | Top 25% | 6.2x above |
| Free Cash Flow Margin | 25.5% | Top 5% | 69.6x above |
| Gross Margin | 60.1% | Top 10% | 2.4x above |
| Operating Margin | 52.2% | Top 5% | 6.9x above |
| Return on Equity (ROE) | 43.2% | Top 10% | 5.9x above |
| P/E Ratio | 27.2x | N/A | - |
Financial Scorecard
| Metric | SCCO | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.4% | Excellent | Top 25% of sector (median: 4.3%) |
| Free Cash Flow Margin | 25.5% | Excellent | Top 5% of sector (median: 0.4%) |
| Gross Margin | 60.1% | Excellent | Top 10% of sector (median: 25.2%) |
| Debt to Equity Ratio | 61.2% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 27.2x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.9% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is SOUTHERN COPPER CORP/'s Return on Invested Capital (ROIC)?
SOUTHERN COPPER CORP/ (SCCO) has a trailing twelve-month Return on Invested Capital (ROIC) of 26.4%. This compares above the sector median of 4.3%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is SOUTHERN COPPER CORP/'s Free Cash Flow Margin?
SOUTHERN COPPER CORP/ (SCCO) has a free cash flow margin of 25.5%, generating $3.4 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is SOUTHERN COPPER CORP/ stock overvalued or undervalued?
SOUTHERN COPPER CORP/ (SCCO) trades at a P/E ratio of 27.2x, which is above the sector median of N/A. The EV/Sales multiple is 9.0x. Free cash flow yield is 2.9%, reflecting growth expectations priced into the stock.
Q: Does SOUTHERN COPPER CORP/ pay a dividend?
SOUTHERN COPPER CORP/ (SCCO) currently pays a dividend yield of 2.2%. Including share buybacks, the total shareholder yield is 2.2%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does SOUTHERN COPPER CORP/ have?
SOUTHERN COPPER CORP/ (SCCO) has a debt-to-equity ratio of 0.6x with total debt of $6.8 billion. Net debt position is $1.8 billion.
Q: What is SOUTHERN COPPER CORP/'s revenue and earnings growth?
SOUTHERN COPPER CORP/ (SCCO) grew revenue by 17.4% year-over-year. Earnings per share increased by 24.5% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: How does SOUTHERN COPPER CORP/ compare to competitors in Materials?
Compared to other companies in Materials, SOUTHERN COPPER CORP/ (SCCO) shows: ROIC of 26.4% is above the sector median of 4.3% (Top 11%). FCF margin of 25.5% exceeds the sector median of 0.4% (Top 0% of sector). Gross margin at 60.1% is 34.8 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.
Q: What warning signs should I watch for with SOUTHERN COPPER CORP/?
SOUTHERN COPPER CORP/ (SCCO) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.