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Southern Copper Corp
SCCO : NYSE : Basic Materials
$29.85 0.03 | 0.10%
Today's Range: 29.53 - 29.81
Avg. Daily Volume: 2,042,400
03/05/15 - 10:00 AM ET

Financial Analysis


SOUTHERN COPPER CORP's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SOUTHERN COPPER CORP has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.89% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY14 Q4 FY13
Net Sales ($mil)1471.31535.21
EBITDA ($mil)673.8726.26
EBIT ($mil)525.5615.86
Net Income ($mil)348.0406.17


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)740.31880.96
Total Assets ($mil)11308.811210.42
Total Debt ($mil)4206.04204.92
Equity ($mil)5804.55533.66


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin48.8350.09
EBITDA Margin45.7947.3
Operating Margin35.7240.12
Sales Turnover0.510.53
Return on Assets11.7814.43
Return on Equity22.9629.24
Debt Q4 FY14 Q4 FY13
Current Ratio2.054.36
Debt/Capital0.420.43
Interest Expense0.066.23
Interest Coverage0.09.3


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)812.6835.32
Div / share0.120.12
EPS0.430.48
Book value / share7.146.62
Institutional Own % n/a n/a
Avg Daily Volume2075817.01876897.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 29.69 for the Metals & Mining industry and a value on par with the S&P 500 average of 19.92. To use another comparison, its price-to-book ratio of 4.19 indicates a premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 1.69. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SCCO 18.58 Peers 29.69   SCCO 17.87 Peers 9.24

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SCCO is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SCCO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SCCO 14.11 Peers 19.86   SCCO NM Peers 0.92

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SCCO is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SCCO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SCCO 4.19 Peers 1.69   SCCO -16.15 Peers 20.70

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SCCO is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SCCO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCCO 4.20 Peers 2.41   SCCO -2.78 Peers 1014.47

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SCCO is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SCCO significantly trails its peers on the basis of sales growth

 

 

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