SOUTHERN COPPER CORP/ (SCCO) Stock Analysis

Analysis from 10-Q filed 2025-10-31. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 29.1%. FCF margin 29.4%. D/E 0.6x. Source: 10-Q filed 2025-10-31.

Metric	Value	Context
ROIC	29.1%	Above industry average
FCF Margin	29.4%	Strong cash generation
Debt/Equity	0.6x	Moderate leverage

ROIC 29.1% — Top 5% of sector peers. FCF margin 29.4% — Top 5%.

Explore SOUTHERN COPPER CORP/: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for SCCO: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: SOUTHERN COPPER CORP/ earns 29.1% ROIC, Top 5% in Materials

ROIC TTM 29.1%, sector median 4.8%, Top 5%. DuPont: NOPAT margin 34.7% × asset turnover 0.7x. Gross margin 61.9%. Operating margin 54.6%. Source: 10-Q filed 2025-10-31.

Metric	SCCO	Rating	Context
Return on Invested Capital (ROIC)	29.1%	Excellent	Above sector median of 4.8%
Return on Equity (ROE)	47.1%	Excellent	Efficient use of shareholder equity
Gross Margin	61.9%	Excellent	Strong pricing power
Operating Margin	54.6%	Excellent	Efficient operations

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Cash Flow: SOUTHERN COPPER CORP/ generates $4.3B FCF at 29.4% margin, positive NaN/8 quarters

FCF TTM $4.3B. FCF margin 29.4%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.

Metric	SCCO	Rating	Context
Free Cash Flow Margin	29.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.3B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: SOUTHERN COPPER CORP/ at 0.6x leverage

Debt/Equity 0.6x. Total debt $6.8B, cash & investments $5.3B. Source: 10-Q filed 2025-10-31.

Metric	SCCO	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-1.4B	Warning	Net debt position

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Valuation: SOUTHERN COPPER CORP/ trades at 28.7x earnings

P/E 28.7x. EV/Sales 9.9x. FCF yield 3.0%. Dividend yield 1.9%. Source: 10-Q filed 2025-10-31.

Metric	SCCO	Rating	Context
P/E Ratio	28.7x	Adequate	Premium valuation
EV/Sales	9.9x	Adequate	Growth premium priced in
FCF Yield	3.0%	Adequate	Lower cash yield
Dividend Yield	1.9%	Adequate	Growth focus over income

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Capital Allocation: SOUTHERN COPPER CORP/ returns 1.9% shareholder yield

Total shareholder yield 1.9% (div 1.9%). Capital returned $2.8B TTM. Source: 10-Q filed 2025-10-31.

Metric	SCCO	Rating	Context
Total Shareholder Yield	1.9%	Adequate	Dividend + buyback yield combined
Total Capital Returned (TTM)	$2.8B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	29.1%	Top 5%	6.1x above
Free Cash Flow Margin	29.4%	Top 5%	27.8x above
Gross Margin	61.9%	Top 10%	2.3x above
Operating Margin	54.6%	Top 5%	6.8x above
Return on Equity (ROE)	47.1%	Top 5%	6.4x above
P/E Ratio	28.7x	N/A	-

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Financial Scorecard

Metric	SCCO	Rating	Sector Context
Return on Invested Capital (ROIC)	29.1%	Excellent	Top 5% of sector (median: 4.8%)
Free Cash Flow Margin	29.4%	Excellent	Top 5% of sector (median: 1.1%)
Gross Margin	61.9%	Excellent	Top 10% of sector (median: 26.5%)
Debt to Equity Ratio	57.3%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	28.7x	Adequate	Growth premium
Free Cash Flow Yield	3.0%	Adequate	Moderate yield

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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 29.1%. Sector median 4.8%. Source: 10-Q filed 2025-10-31.

Q: What is SOUTHERN COPPER CORP/'s Free Cash Flow Margin?

SOUTHERN COPPER CORP/ (SCCO) has a free cash flow margin of 29.4%, generating $4.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.

Q: What is SOUTHERN COPPER CORP/'s P/E ratio and how does it compare to peers?

SOUTHERN COPPER CORP/ (SCCO) trades at a P/E ratio of 28.7x, which is above the sector median of N/A. EV/Sales 9.9x. FCF yield 3.0%. Source: 10-Q filed 2025-10-31.

Q: Does SOUTHERN COPPER CORP/ pay a dividend?

SOUTHERN COPPER CORP/ (SCCO) currently pays a dividend yield of 1.9%. Total shareholder yield (dividend + buybacks) 1.9%. Source: 10-Q filed 2025-10-31.

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 $1.4 billion. Source: 10-Q filed 2025-10-31.

Q: What is SOUTHERN COPPER CORP/'s revenue and earnings growth?

SOUTHERN COPPER CORP/ (SCCO) grew revenue by 21.7% year-over-year. EPS +35.3% YoY. Source: 10-Q filed 2025-10-31.

Q: How does SOUTHERN COPPER CORP/ compare to competitors in Materials?

Compared to other companies in Materials, SOUTHERN COPPER CORP/ (SCCO) shows: ROIC 29.1%, sector median 4.8% (Top 5%). FCF margin 29.4%, sector median 1.1% (Top 5%). Gross margin 61.9%, 35.4pp above sector median. 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/?

No quantitative warning flags fired for SOUTHERN COPPER CORP/ (SCCO) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-31.

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Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q1 2026.

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.