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Southern Copper Corp./ (SCCO) Fundamental Analysis & AI Grade 2026

SCCO NYSE Metal Mining DE CIK: 0001001838
Updated This Month • Analysis: May 6, 2026 • SEC Data: 2026-03-31
Combined AI Grade
A
82% Confidence
N/A
A
82% Conf
Pending
Analysis scheduled

📊 SCCO Key Takeaways

Revenue: $4.3B
Net Margin: 37.1%
Free Cash Flow: $1.3B
Current Ratio: 4.38x
Debt/Equity: 0.57x
EPS: $1.92
AI Grade: A with 82% confidence
Southern Copper Corp./ (SCCO) receives a A fundamental grade with 82% confidence from our AI analysis based on SEC 10-K filings. With revenue of $4.3B, net profit margin of 37.1%, and return on equity (ROE) of 13.4%, Southern Copper Corp./ demonstrates strong fundamentals in the Materials sector. Below is our complete SCCO stock analysis for 2026.

Is Southern Copper Corp./ (SCCO) a Good Investment?

Claude

Southern Copper demonstrates exceptional fundamental strength with 37% net margins, $1.3B free cash flow generation, and conservative 0.57x leverage. Revenue growth of 17.4% coupled with outstanding 4.38x liquidity and $4.9B cash position provides substantial financial flexibility. Primary concern is net income flatness despite revenue growth, indicating margin compression that warrants monitoring in commodity price cycles.

Southern Copper Corp./ Key Strengths (SCCO)

Claude
  • + Outstanding profitability with 37.1% net margin and 58.3% operating margin
  • + Strong free cash flow generation ($1.3B) with 29.5% FCF margin indicates quality earnings
  • + Conservative balance sheet with 0.57x debt-to-equity and $4.9B cash providing strategic flexibility
  • + Robust liquidity with 4.38x current ratio and 3.89x quick ratio
  • + Revenue growth of 17.4% YoY shows market demand strength

SCCO Stock Risks: Southern Copper Corp./ Investment Risks

Claude
  • ! Net income essentially flat (-0.3% YoY) despite 17.4% revenue growth suggests margin compression
  • ! Commodity mining cyclicality exposes earnings to copper and molybdenum price volatility
  • ! Capital intensity requiring $441.9M annual capex limits flexibility during downturns
  • ! $6.8B long-term debt obligations despite low leverage ratios
  • ! EPS growth (24.5%) driven by share buybacks rather than operational improvement

Key Metrics to Watch

Claude
  • * Operating margin trend and cost structure stability amid commodity price cycles
  • * Free cash flow sustainability and capital allocation decisions
  • * Debt levels and leverage ratios if copper prices decline materially

Southern Copper Corp./ (SCCO) Financial Metrics & Key Ratios

Revenue
$4.3B
Net Income
$1.6B
EPS (Diluted)
$1.92
Free Cash Flow
$1.3B
Total Assets
$21.9B
Cash Position
$4.9B

💡 AI Analyst Insight

The 29.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.38x current ratio provides a solid financial cushion.

SCCO Profit Margin, ROE & Profitability Analysis

Gross Margin 68.6%
Operating Margin 58.3%
Net Margin 37.1%
ROE 13.4%
ROA 7.2%
FCF Margin 29.5%

SCCO vs Materials Sector: How Southern Copper Corp./ Compares

How Southern Copper Corp./ compares to Materials sector averages

Net Margin
SCCO 37.1%
vs
Sector Avg 10.0%
SCCO Sector
ROE
SCCO 13.4%
vs
Sector Avg 14.0%
SCCO Sector
Current Ratio
SCCO 4.4x
vs
Sector Avg 1.6x
SCCO Sector
Debt/Equity
SCCO 0.6x
vs
Sector Avg 0.6x
SCCO Sector

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./ has mixed fundamental signals relative to the Materials sector in 2026.

Return on Equity
13.4%
Sector avg: 14%
Net Profit Margin
37.1%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.57x
Sector avg: 0.6x

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

Current Ratio
4.38x
Quick Ratio
3.89x
Debt/Equity
0.57x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
$6.8B

SCCO Revenue & Earnings Growth: 5-Year Financial Trend

SCCO 5-year financial data: Year 2021: Revenue $10.9B, Net Income $1.5B, EPS $1.92. Year 2022: Revenue $10.9B, Net Income $1.6B, EPS $2.03. Year 2023: Revenue $10.9B, Net Income $3.4B, EPS $4.39. Year 2024: Revenue $11.4B, Net Income $2.6B, EPS $3.41. Year 2025: Revenue $13.4B, Net Income $2.4B, EPS $3.05.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
29.5%
Free cash flow / Revenue

SCCO Quarterly Earnings & Performance

Quarterly financial performance data for Southern Copper Corp./ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $3.1B $949.1M $1.15
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Southern Copper Corp./ Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$1.7B
Cash generated from operations
Stock Buybacks
$71.7M
Shares repurchased (TTM)
Capital Expenditures
$441.9M
Investment in assets
Dividends Paid
$819.2M
Returned to shareholders

SCCO SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Southern Copper Corp./ (CIK: 0001001838)

📋 Recent SEC Filings

Date Form Document Action
May 22, 2026 4 xslF345X06/form4-05222026_040554.xml View →
May 18, 2026 4 xslF345X06/form4-05182026_060513.xml View →
May 6, 2026 4 xslF345X06/form4-05062026_110555.xml View →
May 6, 2026 4 xslF345X06/form4-05062026_110542.xml View →
May 6, 2026 4 xslF345X06/form4-05062026_110535.xml View →

Frequently Asked Questions about SCCO

What is the AI rating for SCCO?

Southern Copper Corp./ (SCCO) has an AI grade of A with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SCCO's key strengths?

Claude: Outstanding profitability with 37.1% net margin and 58.3% operating margin. Strong free cash flow generation ($1.3B) with 29.5% FCF margin indicates quality earnings.

What are the risks of investing in SCCO?

Claude: Net income essentially flat (-0.3% YoY) despite 17.4% revenue growth suggests margin compression. Commodity mining cyclicality exposes earnings to copper and molybdenum price volatility.

What is SCCO's revenue and growth?

Southern Copper Corp./ reported revenue of $4.3B.

Does SCCO pay dividends?

Southern Copper Corp./ pays dividends, with $819.2M 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 $1.92.

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 grade reflects both perspectives for balanced insights.

What is SCCO's fundamental grade?

Based on our AI fundamental analysis in May 2026, Southern Copper Corp./ has a A grade with 82% 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 13.4% (sector avg: 14%), net margin of 37.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is SCCO's AI grade for 2026?

Our dual AI analysis gives Southern Copper Corp./ a combined A grade 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 $1.7B, with capital expenditures of $441.9M. FCF margin is 29.5%.

How does SCCO compare to other Materials stocks?

Vs Materials sector averages: Net margin 37.1% (avg: 10%), ROE 13.4% (avg: 14%), current ratio 4.38 (avg: 1.6).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 6, 2026 | Data as of: 2026-03-31 | Powered by Claude AI