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 32.30%, WACC is 10.50%, and the economic spread is 21.80%. On balance, the company generate meaningful returns above their cost of capital, a hallmark of competitively advantaged businesses. Supporting metrics show ROE at 42.95% and ROA at 21.77%, 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 34.20, forward P/E of 25.76, PEG of 2.49. Trailing P/E sits modestly above forward P/E, a spread that is consistent with steady earnings progress and limited near-term re-rating potential. 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 3.89 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 57.24%, operating margin at 52.17%, and free cash flow margin at 25.54%. At this level, the company reflects reasonable cost discipline and adequate pricing leverage at the production layer. 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 38.98% reflecting robust top-line expansion across the company. Consensus EPS estimates point to 32.7% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. 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.