📊 SCCO Key Takeaways
Is Southern Copper Corp./ (SCCO) a Good Investment?
Southern Copper demonstrates fortress-like financial health with exceptional operating margins (52.2%), strong free cash flow generation ($3.4B at 25.5% FCF margin), and conservative leverage (0.61x D/E). The company is generating substantial shareholder returns evidenced by 39.3% ROE while maintaining excellent liquidity (3.89x current ratio), though flat net income growth despite 17.4% revenue growth signals potential margin compression that warrants monitoring.
Why Buy Southern Copper Corp./ Stock? SCCO Key Strengths
- Exceptional operating margin of 52.2% with 32.3% net margin demonstrates pricing power and operational efficiency
- Outstanding free cash flow generation of $3.4B with 25.5% FCF margin conversion provides capital flexibility
- Conservative balance sheet with 0.61x debt-to-equity and $4.3B cash position
- Strong returns on capital: 39.3% ROE and 20.3% ROA significantly exceed cost of capital
- Solid revenue growth of 17.4% YoY in commodity-dependent sector
- Excellent liquidity with 3.89x current ratio and 3.40x quick ratio
SCCO Stock Risks: Southern Copper Corp./ Investment Risks
- Net income growth essentially flat (-0.3% YoY) despite 17.4% revenue growth indicates margin pressure or cost inflation
- Commodity price exposure creates earnings volatility independent of operational performance
- Interest coverage ratio not provided limits debt sustainability assessment
- Capital intensity with $1.3B capex suggests ongoing investment requirements for production maintenance
- Mining sector regulatory and environmental risks not quantified in financial data
Key Metrics to Watch
- Operating margin sustainability (currently 52.2%) to assess whether compression is temporary or structural
- Free cash flow trends and capital allocation decisions relative to $4.3B cash balance
- Copper production volumes and realized prices as primary revenue drivers
- Debt level changes and interest coverage ratio as leverage increases
Southern Copper Corp./ (SCCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.89x current ratio provides a solid financial cushion.
SCCO Profit Margin, ROE & Profitability Analysis
SCCO vs Materials Sector: How Southern Copper Corp./ Compares
How Southern Copper Corp./ compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Southern Copper Corp./ Stock Overvalued? SCCO Valuation Analysis 2026
Based on fundamental analysis, Southern Copper Corp./ appears fundamentally strong relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Southern Copper Corp./ Balance Sheet: SCCO Debt, Cash & Liquidity
SCCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Southern Copper Corp./'s revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.05 reflects profitable operations.
SCCO Revenue Growth, EPS Growth & YoY Performance
SCCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.9B | $899.8M | $1.12 |
| Q2 2025 | $3.1B | $953.8M | $1.21 |
| Q1 2025 | $2.6B | $738.8M | $0.95 |
| Q3 2024 | $2.5B | $622.0M | $0.80 |
| Q2 2024 | $2.3B | $549.6M | $0.71 |
| Q1 2024 | $2.6B | $738.8M | $0.95 |
| Q3 2023 | $2.2B | $520.9M | $0.67 |
| Q2 2023 | $2.3B | $434.2M | $0.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Southern Copper Corp./ Dividends, Buybacks & Capital Allocation
SCCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Southern Copper Corp./ (CIK: 0001001838)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SCCO
What is the AI rating for SCCO?
Southern Copper Corp./ (SCCO) has an AI rating of BUY with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCCO's key strengths?
Claude: Exceptional operating margin of 52.2% with 32.3% net margin demonstrates pricing power and operational efficiency. Outstanding free cash flow generation of $3.4B with 25.5% FCF margin conversion provides capital flexibility.
What are the risks of investing in SCCO?
Claude: Net income growth essentially flat (-0.3% YoY) despite 17.4% revenue growth indicates margin pressure or cost inflation. Commodity price exposure creates earnings volatility independent of operational performance.
What is SCCO's revenue and growth?
Southern Copper Corp./ reported revenue of $13.4B.
Does SCCO pay dividends?
Southern Copper Corp./ pays dividends, with $2,485.1M distributed to shareholders in the trailing twelve months.
Where can I find SCCO SEC filings?
Official SEC filings for Southern Copper Corp./ (CIK: 0001001838) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCCO's EPS?
Southern Copper Corp./ has a diluted EPS of $5.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SCCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Southern Copper Corp./ has a BUY rating with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SCCO stock overvalued or undervalued?
Valuation metrics for SCCO: ROE of 39.3% (sector avg: 14%), net margin of 32.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy SCCO stock in 2026?
Our dual AI analysis gives Southern Copper Corp./ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SCCO's free cash flow?
Southern Copper Corp./'s operating cash flow is $4.8B, with capital expenditures of $1.3B. FCF margin is 25.5%.
How does SCCO compare to other Materials stocks?
Vs Materials sector averages: Net margin 32.3% (avg: 10%), ROE 39.3% (avg: 14%), current ratio 3.89 (avg: 1.6).
Why is SCCO's return on equity (ROE) so high?
Southern Copper Corp./ has a return on equity of 39.3%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 32.3% net margin.