Southern Copper Intrinsic Stock Value – Investors Struggle to Assess Southern Copper Corporation’s Valuation
January 2, 2024
🌧️Trending News
Investors are struggling to accurately assess the valuation of Southern Copper ($NYSE:SCCO) Corporation (SCC) at the moment. Establishing a reliable Price-to-Earnings Ratio for the company has been a challenge due to the volatility of its stock price, and the lack of reliable information about SCC’s financial results. SCC is a publically traded company that primarily engages in the exploration, mining, smelting, and refining of copper and other minerals in South America. It is one of the top producers of copper in the world, and its operations span four countries: Peru, Mexico, Ecuador, and Argentina.
As investors continue to struggle to accurately value SCC, they must remain mindful of the unique challenges that come with investing in such a volatile stock. Although it has historically been a profitable investment, investors must take into account the risk factors associated with it before making any decisions. Ultimately, investors must exercise caution when attempting to assess the true value of SCC.
Stock Price
The stock opened at $86.0 and closed at $86.1, a decrease of 1.4% from the previous closing price of 87.3. This has left the market debating whether this drop is a sign of potential undervaluation or a sign of volatility that should be followed with caution. The answer to this question is yet unclear, and investors will have to wait for further changes in the stock’s performance to assess its true value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Southern Copper. More…
| Total Revenues | Net Income | Net Margin |
| 10.42k | 2.88k | 27.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Southern Copper. More…
| Operations | Investing | Financing |
| 4.11k | -1.29k | -3.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Southern Copper. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.96k | 9.16k | 10.02 |
Key Ratios Snapshot
Some of the financial key ratios for Southern Copper are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.6% | 20.4% | 46.7% |
| FCF Margin | ROE | ROA |
| 29.5% | 38.9% | 17.9% |
Analysis – Southern Copper Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of the financials of SOUTHERN COPPER. Our proprietary Valuation Line has calculated an intrinsic value of around $68.1 for the SOUTHERN COPPER share. Unfortunately, the stock is currently being traded at $86.1, making it 26.5% overvalued according to our assessment. We advise investors to take caution when making investment decisions in this stock. More…
Peers
The global copper industry is highly competitive, with a large number of companies vying for market share. Southern Copper Corp is one of the largest copper producers in the world, and competes against China Nonferrous Mining Corp Ltd, Hindustan Copper Ltd, and Jiangxi Copper Co Ltd, among others. The company has a long history dating back to 1902, and has a strong position in the market. Southern Copper Corp is a vertically integrated company, meaning it is involved in all aspects of the copper mining process, from exploration and development to mining, smelting, and refining. The company has a diversified portfolio of assets and operations, and is one of the lowest-cost copper producers in the world. Southern Copper Corp is well-positioned to compete in the global copper industry.
– China Nonferrous Mining Corp Ltd ($SEHK:01258)
The company’s market cap is 11.67B as of 2022, a Return on Equity of 29.54%. The company is engaged in the business of nonferrous metals mining and operates a number of mines in China. It is also engaged in the smelting and refining of nonferrous metals. The company’s products include copper, aluminum, lead, zinc, nickel, tin, and precious metals.
– Hindustan Copper Ltd ($BSE:513599)
Hindustan Copper Ltd is an Indian copper mining company with a market cap of 103.42B as of 2022. The company has a Return on Equity of 13.71%. Hindustan Copper Ltd is engaged in the business of copper mining, smelting, and refining. The company has mines in Jharkhand and Rajasthan, and a plant in Gujarat. The company produces copper cathodes, copper rods, and copper wire. Hindustan Copper Ltd also produces gold and silver.
– Jiangxi Copper Co Ltd ($SHSE:600362)
Jiangxi Copper Co Ltd is a Chinese company that produces and supplies copper. The company has a market cap of 44.09B as of 2022. The company’s Return on Equity is 8.5%. Jiangxi Copper Co Ltd produces copper cathodes, copper rods, and copper wire. The company also produces gold, silver, and other metals. Jiangxi Copper Co Ltd is headquartered in Jiangxi Province, China.
Summary
Southern Copper Corporation is a leading international mining company that produces copper, molybdenum, zinc, and other minerals. It is difficult to accurately assess its stock price-to-earnings ratio (P/E) at this time due to fluctuations in the demand for minerals, changes in the global economic climate, and the impact of geopolitical events. Investors can use fundamental analysis to evaluate the company’s financials and consider its management team to make an informed investment decision. Additionally, technical analysis can be used to identify trading opportunities and assess the current market sentiment for the stock.
