Operating Margin

Watchlist Manager

Watchlist

Price: 3 236.6799 MXN Market Closed

Market Cap: Mex$131.6B

50.3%

Improving

by 4.5%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

50.3%

Operating Income

$6.2B

Revenue

$12.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

50.3%

Operating Income

Mex$6.2B

Revenue

$12.3B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Southern Copper Corp NYSE:SCCO	151B USD	Loading...
AU	BHP Group Ltd ASX:BHP	245.8B AUD	Loading...
AU	Rio Tinto Ltd ASX:RIO	241.5B AUD	Loading...
UK	Rio Tinto PLC LSE:RIO	108.4B GBP	Loading...
US	Freeport-McMoRan Inc NYSE:FCX	86.7B USD	Loading...
CA	Teck Resources Ltd NYSE:TECK	25.9B USD	Loading...
UK	Antofagasta PLC LSE:ANTO	36.6B GBP	Loading...
CN	Jiangxi Copper Co Ltd SSE:600362	218.1B CNY	Loading...
CA	First Quantum Minerals Ltd TSX:FM	33.4B CAD	Loading...
CA	Lundin Mining Corp TSX:LUN	28.9B CAD	Loading...
PL	KGHM Polska Miedz SA WSE:KGH	67.9B PLN	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Southern Copper Corp
Glance View

Economic Moat

Narrow

Market Cap

131.6B MXN

Industry

Metals & Mining

In the vast and often volatile world of mining, Southern Copper Corp. stands as a towering presence, weaving a narrative of resilience and growth primarily underpinned by its core commodity—copper. Operating under the umbrella of Grupo México, Southern Copper is a crucial player in the mining industry, with a substantial footprint across Latin America. Its assets are predominantly located in Mexico, Peru, and Chile, which are among the globe’s richest copper reserves. The company’s operations portray an intricate tapestry of open-pit and underground mining, which efficiently extract copper ore. Through advanced metallurgical processes, these raw materials are smelted and refined into high-quality finished copper, which not only fuels industrial economies but also capitalizes on the burgeoning demand for electrical components and renewable energy infrastructure. The company’s business model is structured around economies of scale, where its extensive mineral deposits and production capabilities enable it to maintain a low-cost structure, enhancing profitability even amid fluctuating copper prices. Southern Copper also engages in the production of by-products including molybdenum, zinc, and silver, contributing additional revenue streams and further stabilizing earnings. With a keen eye on sustainability, the company invests in state-of-the-art technology to optimize mining efficiency and minimize environmental impact, keeping it aligned with global ecological imperatives. By focusing on strategic mining operations, Southern Copper adeptly navigates the commodities market, ensuring its place as one of the foremost copper producers worldwide while driving economic contributions across regions rich in mineral resources.

View SCCO Analysis

SCCO Intrinsic Value

Show

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Southern Copper Corp
BMV:SCCO

Peer Comparison

Market Distribution

Other Profitability Ratios

Southern Copper Corp
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	1 519.1668 3 236.6799
Price Target

Southern Copper Corp BMV:SCCO