Southern Copper Corp

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SCCO : NYSE : Basic Materials
$26.30 -0.13 | -0.49%
Today's Range: 26.30 - 26.70
Avg. Daily Volume: 1,001,200
09/30/16 - 4:02 PM ET

Financial Analysis


SOUTHERN COPPER CORP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. SOUTHERN COPPER CORP has average liquidity. Currently, the Quick Ratio is 1.40 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.34% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1335.01382.92
EBITDA ($mil)549.5638.98
EBIT ($mil)385.0503.15
Net Income ($mil)221.9294.71


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)554.62153.07
Total Assets ($mil)12787.413348.62
Total Debt ($mil)5952.96152.22
Equity ($mil)5555.05807.44


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.6948.89
EBITDA Margin41.1646.2
Operating Margin28.8436.38
Sales Turnover0.390.42
Return on Assets4.429.36
Return on Equity10.1921.51
Debt Q2 FY16 Q2 FY15
Current Ratio2.953.8
Debt/Capital0.520.51
Interest Expense89.286.93
Interest Coverage4.325.79


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)773.7798.0
Div / share0.050.1
EPS0.290.37
Book value / share7.187.28
Institutional Own % n/a n/a
Avg Daily Volume1080026.01473346.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 333.17 for the Metals & Mining industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 3.66 indicates a premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 1.87. The current price-to-sales ratio is well above the S&P 500 average and above 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 35.99 Peers 333.17   SCCO 29.49 Peers 13.00

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 23.88 Peers 26.27   SCCO 2.56 Peers 0.81

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.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SCCO 3.66 Peers 1.87   SCCO -52.60 Peers -140.34

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.

 

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

SCCO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SCCO 4.09 Peers 3.72   SCCO -11.34 Peers -11.47

Average. 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 valuation on par with its industry on this measurement.

 

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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