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Essay / Scco: Summary of Southern Copper Corporation
Southern Copper Corporation (SCCO) was incorporated on September 7, 1995 and is engaged in integrated copper mining with operations in Mexico, Argentina, Ecuador, Peru and in Chile. It is one of the largest American companies and the Fortune 500 ranks SCCO at number 127. Being one of the largest companies, an investor will surely be tempted to buy shares of SCCO, but buying shares does not necessarily have to be based on company size. business alone. There are many factors to consider, such as the company's revenue history, net profit, competition, among others. Another analysis tool that can be used is benchmarking. For this analysis, available company data, extracted from the stock market specifically from the Yahoo Finance website, will be the primary consideration. The forecasts of stock market analysts will also be taken into account, as they represent the educated sector of stock market investment. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssaySouthern Copper Corporation is known by its ticker symbol “SCCO” in the stock market. Its shares are traded on the NASDAQ. The latest available data shows SCCO's stock price at $45.09 with a market capitalization of $34.86 billion. Its price-to-earnings (P/E) ratio, which represents its current stock price relative to its earnings per share, is listed at 39.38% with a dividend of $1.20 per share with an expected annual return of 2.66%. The expected return may not be very attractive, but it is sufficient as it is higher than the US interest rate of around 2%. The enterprise value which represents the total value of the company after taking into account debt, cash and investments is $40.77 billion, which is $5.91 billion higher than its market capitalization. With a beta of 0.42, this means that the stock price does not move in the same way as the overall stock market and should move based on its own strength or weakness. Looking at its stock split history, records show that there was one on July 11, 2008 and it was done to correct the value of its shares which had climbed to $40.42 from the previous quarter . The closing prices over the last 5 trading days were $46.48, $46.31, $44.52, $44.79 and $45.19. The last 52-week high price was $58.09 and the book value of one stock is $7.70. In July last year, rising copper prices pushed the stock price higher, which had a negative effect on the market. In April 2018, Southern Copper's rating was downgraded from 'buy' to 'neutral'. Another news story from June 2018 indicated that following weak economic data from China, copper's performance fell to a year-to-date low (MarketWatch, 2018). According to CNN Money's survey of 12 analysts, target price forecasts for the next year range from a low of 33.95 to a high of 58.00 with a median of 44.00 (CNN Money, 2018 ). Comparing the median forecast with the current stock price of $45.09 shows a slight decline of 2.42% in the forecast stock price. Out of 13 analysts who responded, 7 recommend “hold” while 6 favor “sell” SCCO stock. This rating remained unchanged from the last rating in July. In a separate poll of 9 analysts conducted by Thomson Reuters, the average consensus on the target price is $46.30, representing a.