SCCO Southern Copper

Southern Copper Corporation is the world's largest publicly traded copper company by reserves, with major mining operations in Peru and Mexico. Sector: Materials.

Southern Copper (SCCO) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 39.95%, WACC is 9.97%, and the economic spread is 29.99%. On balance, the company exhibits an exceptional economic spread, compounding intrinsic value at a rate few companies can match. Supporting metrics show ROE at 50.27% and ROA at 26.04%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Multiple analysis puts the company at trailing P/E of 29.86, forward P/E of 27.02, PEG of 2.35. Trailing and forward multiples are nearly identical, indicating the market is pricing the company on a relatively static earnings assumption. On a PEG basis, valuation is in the middle ground — fair for the growth on offer, with the return case resting on earnings delivery rather than re-rating. The current ratio of 5.06 indicates the company is well-positioned to meet near-term obligations. The combined valuation and liquidity profile points to a company where current prices embed meaningful growth expectations, and where delivery against those expectations will drive the return outcome.

On the margin front: gross margin sits at 61.33%, operating margin at 56.90%, and free cash flow margin at 32.31%. At this gross margin level, the company demonstrates significant pricing power and production efficiency. The operating margin here is a standout — reflecting businesses that convert a large share of gross profit into operating earnings. At this FCF margin level, the company have considerable financial flexibility without reliance on external financing. This margin set supports the view that earnings quality is high and cash generation is not merely accounting-driven.

The two main inputs to the near-term picture — TTM revenue growth of 40.58% reflecting robust top-line expansion across the company. Forecasted EPS growth of 10.5% over the next year is supportive of the current valuation, suggesting the market is not paying for earnings that won't arrive. Analyst price targets suggest street estimates suggest current pricing may be ahead of fundamentals on a 12-month view. Revenue momentum establishes the baseline; analyst price targets reveal how much the market is already paying for future execution on top of that baseline. Delivered returns will ultimately be shaped by the gap — or lack thereof — between operating execution and the expectations embedded in current prices. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.