NYSE · Basic Materials

Southern Copper Corporation

SCCO · Copper

$185.99

▲ 3.28 (1.8%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

N/A⤢

Fin. Health

C⤢

Years to Pay Off Debt 4.7 yrs

Working Capital vs Long-Term Debt -$27M

Working Capital $6.7B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 12.37x

Cash Flow

B⤢

Free Cash Flow $1.3B

CapEx % of Net Income 28.0%

Owner Earnings $2.2B

Financial Health

Years to Pay Off Debt 4.7 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$27M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $6.7B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $1.3B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 28.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Southern Copper Corporation

Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Mexico, the United States, Peru, Brazil, Chile, and Other American countries. 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 copper-molybdenum concentrates and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of copper, molybdenum, zinc, silver, gold and lead. It operates the Toquepala and Cuajone open-pit mines, smelter, and refinery in Peru; La Caridad, an open-pit copper mine, as well as copper ore concentrator; and SX-EW plant, a smelter, refinery, and rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as copper concentrators and operating SX-EW plants in Mexico. In addition, it operates underground mines that produce zinc, lead, copper, silver, and gold; coal mine; and zinc refinery. The company has interests in 164,805 hectares and 505,788 hectares of concessions in Peru and Mexico; and 98,634 hectares and 28,453 hectares of exploration concessions in Argentina and Chile. Southern Copper Corporation was formerly known as Southern Peru Copper Corp. and changed its name to Southern Copper Corporation in July 1996. The company was incorporated in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation operates as a subsidiary of Americas Mining Corporation.

Market Data

Market Cap $145.8B

Enterprise Value $153.8B

P/E (TTM) 27.43

Dividend Yield 1.96%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin N/A

Company Info

Sector Basic Materials

Industry Copper

Employees 16617

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Southern Copper Corporation at $185.99.

The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.

At $185.99, the stock trades at a 613% premium to its Graham Number of $26.08. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	N/A•	56.0%
Operating Margin %	N/A•	54.5%
Net Income %	N/A•	33.8%
Diluted EPS	2.01▲	1.53

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$21.9B	$21.4B	N/A
Total Debt	$7.4B▼	$7.4B•	N/A
Working Capital	$6.7B▲	$6.2B•	N/A
Years to Pay Debt	4.69	5.67	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	$1.3B▲	$1.1B
Owner Earnings	$2.2B	$2.0B
CapEx % of Net Income	28.0%	32.3%

Income Statement

	2026	2025
Tax Rate For Calcs		0
Normalized EBITDA		2,360,400
Net Income From Continuing Operation Net Minority Interest		1,307,900
Reconciled Depreciation		230,700
Reconciled Cost Of Revenue		1,702,200
EBITDA		2,360,400
EBIT		2,129,700
Net Interest Income		-42,000
Interest Expense		92,000
Interest Income		50,000
Normalized Income		1,307,900
Net Income From Continuing And Discontinued Operation		1,307,900
Total Expenses		1,759,300
Total Operating Income As Reported		2,110,400
Diluted Average Shares	829,100	853,778
Basic Average Shares	829,100	853,778
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders		1,307,900
Net Income Common Stockholders		1,307,900
Net Income		1,307,900
Minority Interests		-3,600
Net Income Including Noncontrolling Interests		1,311,500
Net Income Continuous Operations		1,311,400
Earnings From Equity Interest Net Of Tax		15,500
Tax Provision		741,800
Pretax Income		2,037,700
Other Income Expense		-30,500
Net Non Operating Interest Income Expense		-42,000
Interest Expense Non Operating		92,000
Interest Income Non Operating		50,000
Operating Income		2,110,500
Other Operating Expenses		17,200
Selling General And Administration		39,900
Gross Profit		2,167,600
Cost Of Revenue		1,702,200
Total Revenue		3,869,800
Operating Revenue		3,869,800

Balance Sheet

	2026	2025	2024
Treasury Shares Number	59,116	66,715
Ordinary Shares Number	834,331	834,325
Share Issued	893,447	901,040
Net Debt	1,836,500	2,446,100
Total Debt	7,401,700	7,413,500
Tangible Book Value	11,665,000	10,988,600
Invested Capital	18,539,500	17,788,800
Working Capital	6,724,600	6,207,400
Net Tangible Assets	11,665,000	10,988,600
Capital Lease Obligations	649,800	662,800
Common Stock Equity	11,787,600	11,038,100
Total Capitalization	18,539,500	17,788,800
Total Equity Gross Minority Interest	11,859,400	11,104,900
Minority Interest	71,800	66,800
Stockholders Equity	11,787,600	11,038,100
Other Equity Interest	100	100	100
Gains Losses Not Affecting Retained Earnings	8,300	8,300
Other Equity Adjustments	8,300	8,300
Treasury Stock	1,870,500	2,034,200
Retained Earnings	5,292,700	5,797,200
Additional Paid In Capital	8,348,200	7,257,900
Capital Stock	8,800	8,800
Common Stock	8,800	8,800
Total Liabilities Net Minority Interest	10,070,500	10,276,500
Total Non Current Liabilities Net Minority Interest	8,078,100	8,131,400
Other Non Current Liabilities	66,500	105,700
Tradeand Other Payables Non Current	103,000	97,100
Non Current Deferred Liabilities	110,400	130,500
Non Current Deferred Taxes Liabilities	110,400	130,500
Long Term Debt And Capital Lease Obligation	7,313,200	7,327,000
Long Term Capital Lease Obligation	561,300	576,300
Long Term Debt	6,751,900	6,750,700
Long Term Provisions	485,000	471,100
Current Liabilities	1,992,400	2,145,100
Other Current Liabilities	-100	100	100
Current Debt And Capital Lease Obligation	88,500	86,500
Current Capital Lease Obligation	88,500	86,500
Current Debt			499,800
Other Current Borrowings			499,800
Payables And Accrued Expenses	1,904,000	2,058,500
Current Accrued Expenses	537,500	562,600
Interest Payable	126,100	115,000
Payables	1,366,500	1,495,900
Total Tax Payable	460,500	634,400
Income Tax Payable	460,500	634,400
Accounts Payable	906,000	861,500
Total Assets	21,929,900	21,381,400
Total Non Current Assets	13,213,000	13,028,800
Other Non Current Assets	1,445,100	1,462,700
Non Current Deferred Taxes Assets	352,500	336,300
Investments And Advances	150,700	134,500
Long Term Equity Investment	150,700	134,500
Goodwill And Other Intangible Assets	122,600	49,500
Other Intangible Assets		7,600	7,900
Goodwill		41,900	41,900
Net PPE	11,142,100	11,045,800
Accumulated Depreciation		-11,210,400	-10,547,600
Gross PPE	11,142,100	22,256,200
Construction In Progress		1,822,500	1,579,100
Other Properties	11,142,100	700,800
Buildings And Improvements		18,778,200	18,013,500
Current Assets	8,717,000	8,352,500
Other Current Assets	32,600	31,400
Prepaid Assets	296,000	331,200
Inventory	959,200	1,058,100
Other Inventories	223,700	238,600
Finished Goods	55,400	68,300
Work In Process	263,300	327,900
Raw Materials	416,800	423,300
Receivables	2,079,700	2,022,600
Accounts Receivable	2,079,700	2,022,600
Cash Cash Equivalents And Short Term Investments	5,349,500	4,909,200
Other Short Term Investments	434,100	604,600
Cash And Cash Equivalents	4,915,400	4,304,600

Cash Flow

	2026	2025
Free Cash Flow	1,252,600	1,071,700
Repayment Of Debt		0
Issuance Of Debt	0	0
Capital Expenditure	-441,900	-422,600
End Cash Position	4,915,400	4,304,600
Beginning Cash Position	4,304,600	3,949,600
Effect Of Exchange Rate Changes	6,700	43,600
Changes In Cash	604,100	311,400
Financing Cash Flow	-819,100	-731,500
Cash Flow From Continuing Financing Activities	-819,100	-731,600
Net Other Financing Charges	100	-400
Cash Dividends Paid	-819,200	-731,100
Common Stock Dividend Paid	-819,200	-731,100
Net Issuance Payments Of Debt	0	0
Net Long Term Debt Issuance	0	0
Long Term Debt Payments		0
Long Term Debt Issuance	0	0
Investing Cash Flow	-271,300	-451,300
Cash Flow From Continuing Investing Activities	-271,400	-451,300
Net Other Investing Changes	100
Net Investment Purchase And Sale	170,500	-28,700
Capital Expenditure Reported	-441,900	-422,600
Operating Cash Flow	1,694,500	1,494,300
Cash Flow From Continuing Operating Activities	1,694,600	1,494,400
Change In Working Capital	-56,100	-33,800
Change In Other Working Capital	21,500	-161,000
Change In Payables And Accrued Expense	-109,900	352,100
Change In Inventory	97,400	6,900
Change In Receivables	-65,100	-231,800
Changes In Account Receivables	-65,100	-231,800
Other Non Cash Items	11,600	51,000
Deferred Tax	-34,800	-66,700
Deferred Income Tax	-34,800	-66,700
Depreciation Amortization Depletion	225,700	230,700
Earnings Losses From Equity Investments	-16,200	-10,900
Net Foreign Currency Exchange Gain Loss	-17,600	12,500
Net Income From Continuing Operations	1,581,900	1,311,500

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

4.38x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.3B

vs Positive

Operating Cash Flow

$1.7B

Latest quarter · Buffett's cash reality check

ROIC

nan%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

12.3x

Net Assets: $11.9B

Asset Context — Copper

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry

No auto-detected peers for Copper. You can manually compare SCCO against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

88.99%

High — management has strong skin in the game

Debt Trend YoY

-0.2% YoY

Debt is declining — management is deleveraging

Leadership Team

Engineer Leonardo Contreras Lerdo de Tejada

CEO & Non-Independent Director

Age 39

Pay: $52,000

Raul Jacob Ruisanchez

VP of Finance, Treasurer & CFO

Age 67

Pay: $515,080

Juan Fernando Nunez Chavez

Vice President of Explorations

Age 66

Pay: $311,879

Patricio Ovejas Simon

Executive Vice President

Age 37

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	1.14%	9,493,876
Capital World Investors	1.04%	8,697,404
State Street Corporation	0.35%	2,942,759
Price (T.Rowe) Associates Inc	0.35%	2,889,371
Neuberger Berman Group, LLC	0.32%	2,635,082
Mirae Asset Global ETFs Holdings Ltd.	0.30%	2,480,737
Fisher Asset Management, LLC	0.28%	2,331,611
Acadian Asset Management. LLC	0.22%	1,870,505

⚠️ Short interest exceeds 20% — heavy bearish bets

Risk Analysis

Beta (Market Risk)

1.14

Moderate volatility — moves slightly more than market

Short Interest

23.0% of float

Heavy short selling — market has significant bearish bets

Debt-to-Equity

0.68x

Conservative balance sheet — low financial risk

Current Ratio

5.06x

Strong liquidity — Graham approved

52-Week Price Range

Low: $88.68 Current: $185.99 High: $221.67

Currently at 73% of 52-week range

Southern Copper Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis