Southern Copper Corporation SCCO

Name: SCCO Crucible Score
Creator: Kaladin Capital Intelligence

Basic MaterialsCopperNYSE📅 Scored March 7, 2026

Price at analysis: $165.49

Crucible Score

51.2

Quality × Value Composite

KQI — Quality

66.4

B-

Fundamental Quality Index

KVI — Value

33.2

D-

Valuation Attractiveness Index

Crucible Verdict — SCCO

Southern Copper Corporation (SCCO) presents a stark quality-value disconnect, with exceptional financial strength (90) undermined by weak valuation metrics that drag its overall score to a mediocre 51.2. The stock trades 8% above fair value despite solid operational fundamentals and a 75% earnings beat rate. SCCO's premium pricing leaves little margin for error in an already cyclical sector.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

89.7

Growth Profile

55.2

Moat Durability⚠

61.1

Management Effectiveness⚠

60.0

Diversification & Resilience

55.0

Market Position

62.0

Weakest dimension: Diversification & Resilience (55.0)

◆ KVI Value Dimensions

DCF Margin of Safety

38.1

FCF Yield & Cash Returns

29.9

Relative Valuation

35.3

Growth-Adjusted Value

48.7

Historical Valuation

5.5

Macro Context

5.0

◆ DCF Valuation Scenarios

Bear Case

$95.42

Base Case

$152.78

Bull Case

$228.61

Price at Analysis

$165.49

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$95.42	4.0%	40.0%	10.4%
🟢 Base	$152.78	7.0%	46.0%	9.7%
🟢 Bull	$228.61	10.0%	52.0%	9.1%

Key Assumptions: WACC derived using CAPM with 4.39% risk-free rate, 1.08 beta, and 5.5% ERP (base ~10%). Revenue growth anchored to 5-year historical CAGR of ~5-6% with copper price sensitivity driving scenario spread. Operating margins reflect historical range of 42-56%, with bear assuming reversion toward lower end due to cost inflation and bull assuming sustained high copper prices supporting margin expansion. Tax rate set at 37.8% reflecting 5-year average; capex intensity of ~9.5% of revenue reflects recent investment ramp.

◆ Financial Snapshot

Profitability

Gross Margin56.7%

Operating Margin52.2%

Net Margin32.3%

ROIC22.6%

ROE27.5%

Balance Sheet

Balance SheetCR: 3.89

Cash ConversionFCF/EPS: 0.79x

Capital IntensityCapex/Rev: 9.9%

Altman Z-Score12.43 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR-40.8% CAGR (suspect)

Earnings CAGR-40.2% CAGR (suspect)

Growth ConsistencyCV: 263.06

Segment Breadth5/5 growing (100%)

Quarterly TrendRev↑, Margin↑

Earnings CredibilityConsistent Beater

◆ Revenue Breakdown — FY2025

By Segment

Copper74.8%

Molybdenum10.5%

Silver7.3%

Zinc3.9%

Other3.6%

By Geography

Europe26.9%

MEXICO24.2%

UNITED STATES14.5%

Asia10.1%

China9.5%

PERU6.4%

BRAZIL4.2%

CHILE4.1%

Total Revenue

$13.4B

Fiscal Year 2025

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$150.70

Analysts Covering (Quarter)10

Avg Target (Last Year)$137.41

Analysts (Year)17

Leadership & Governance

CEORaúl Jacob Helmes · 4 years

CEO Ownership< 1%

Insider ActivitySelling

Capital AllocationROIC 22.6% vs WACC 3.9%

Earnings Beat Rate75% (15/21)

◆ Company Profile

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead.

CEO

Oscar Gonzalez Rocha

Employees

16133

Headquarters

Phoenix, AZ, US

IPO Date

January 5, 1996

Exchange

NYSE

Website

southerncoppercorp.com

◆ Related Companies in Our Universe

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ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.