Southern Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Chile, and Ecuador. The company was founded in 1952 and is based in Phoenix, Arizona.
SCCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Southern Copper Corp. To summarize, we found that Southern Copper Corp ranked in the 81th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Southern Copper Corp, consider:
SCCO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 27.64% of tickers in our DCF set.
Southern Copper Corp's effective tax rate, as measured by taxes paid relative to net income, is at 27 -- greater than 89.28% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Basic Materials), Southern Copper Corp has a reliance on debt greater than just 24.74% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SCCO, try ODC, BCC, RS, NEM, and WMS.
With us this morning, we have Southern Copper Corporation's Mr. Raul Jacob, Vice President of Finance, Treasurer and CFO, who will discuss the results of the company for the second quarter of 2020 as well as answer any questions that you might have. Thank you very much, Victor.
Southern Copper ([[SCCO]] -3.0%) slides after reporting Q2 adjusted EBITDA fell 18.3% Y/Y to $770M, as copper production slid 1.3% to 253.1K tons.Q2 net sales fell 1.8% to $1.785B, as sales volumes increased for copper (+11%), molybdenum (+15.4%) and silver (+28.1%), but prices fell sharply for copper (-12.6%), molybdenum (-32.1%)...
(July 24): A proxy advisory firm for financial institutions such as hedge funds is taking issue with one of the world’s top copper producers for its lack of gender diversity in the board room. Institutional Shareholder Services is recommending that shareholders withhold their support from the entire board of Southern Copper Corp. at its annual general meeting Friday.