Southern Copper (BUE:SCCO) Beneish M-Score : -2.92 (As of Apr. 27, 2024)

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What is Southern Copper Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Southern Copper's Beneish M-Score or its related term are showing as below:

BUE:SCCO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.58 Max: -2.23
Current: -2.92

During the past 13 years, the highest Beneish M-Score of Southern Copper was -2.23. The lowest was -2.92. And the median was -2.58.

Southern Copper Beneish M-Score Historical Data

The historical data trend for Southern Copper's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Southern Copper Beneish M-Score Chart

Southern Copper Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.73

-2.61

-2.55

-2.40

-2.92

Southern Copper Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.40	-2.44	-2.67	-2.81	-2.92

Competitive Comparison of Southern Copper's Beneish M-Score

For the Copper subindustry, Southern Copper's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Southern Copper's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Southern Copper's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Southern Copper's Beneish M-Score falls into.

Southern Copper Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Southern Copper for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8603

0.528 * 1.0505

0.404 * 1.0981

0.892 * 2.0861

0.115 * 0.9652

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0511

4.679 * -0.052581

0.327 * 1.043

-1.85

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ARS443,416 Mil.
Revenue was 828711.601 + 876834.744 + 552167.996 + 551934.958 = ARS2,809,649 Mil.
Gross Profit was 331145.3 + 391034.141 + 226511.998 + 275779.806 = ARS1,224,471 Mil.
Total Current Assets was ARS1,599,050 Mil.
Total Assets was ARS6,037,833 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,839,343 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS239,974 Mil.
Selling, General, & Admin. Expense(SGA) was ARS36,838 Mil.
Total Current Liabilities was ARS501,249 Mil.
Long-Term Debt & Capital Lease Obligation was ARS2,509,672 Mil.
Net Income was 160645 + 216794.031 + 131399.999 + 160647.664 = ARS669,487 Mil.
Non Operating Income was -7689.3 + 3114.555 + 1344 + 2074.275 = ARS-1,156 Mil.
Cash Flow from Operations was 195301 + 367377.52 + 191303.998 + 234136.265 = ARS988,119 Mil.

Total Receivables was ARS247,083 Mil.
Revenue was 472823.282 + 299701.251 + 277589.281 + 296754.885 = ARS1,346,869 Mil.
Gross Profit was 237191.213 + 114911.648 + 102424.897 + 162078.117 = ARS616,606 Mil.
Total Current Assets was ARS869,718 Mil.
Total Assets was ARS2,896,556 Mil.
Property, Plant and Equipment(Net PPE) was ARS1,764,952 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS106,249 Mil.
Selling, General, & Admin. Expense(SGA) was ARS16,801 Mil.
Total Current Liabilities was ARS207,165 Mil.
Long-Term Debt & Capital Lease Obligation was ARS1,177,792 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(443416.3 / 2809649.299)	/	(247082.563 / 1346868.699)
	=	0.157819	/	0.18345
	=	0.8603

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(616605.875 / 1346868.699)	/	(1224471.245 / 2809649.299)
	=	0.457807	/	0.435809
	=	1.0505

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1599049.501 + 3839343.303) / 6037833.305)	/	(1 - (869717.881 + 1764952.091) / 2896556.03)
	=	0.099281	/	0.090413
	=	1.0981

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2809649.299	/	1346868.699
	=	2.0861

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(106248.77 / (106248.77 + 1764952.091))	/	(239973.513 / (239973.513 + 3839343.303))
	=	0.056781	/	0.058827
	=	0.9652

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(36837.985 / 2809649.299)	/	(16800.9 / 1346868.699)
	=	0.013111	/	0.012474
	=	1.0511

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2509672.002 + 501248.5) / 6037833.305)	/	((1177791.512 + 207165.099) / 2896556.03)
	=	0.498676	/	0.478139
	=	1.043

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(669486.694 - -1156.47	-	988118.783)	/	6037833.305
	=	-0.052581

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Southern Copper has a M-score of -1.85 suggests that the company is unlikely to be a manipulator.

Southern Copper Beneish M-Score Related Terms

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Southern Copper (BUE:SCCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Southern Copper Corp (BUE:SCCO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SCCO:USA SCCO:Peru SCCO:Mexico PCU:Germany

Address

7310 North 16th Street, Suite 135, Phoenix, AZ, USA, 85020

Website

https://www.southerncoppercorp.com

Southern Copper Corp is an integrated producer of copper and other minerals and operates the mining, smelting, and refining facilities in Peru and Mexico. Its production includes copper, molybdenum, zinc, and silver. The company operates through the following segments: Peruvian operations, Mexican open-pit operations, and Mexican underground mining operations. Southern Copper generates the majority of its revenue from the sale of copper and the rest from the sale of non-copper products, such as molybdenum, silver, zinc, lead, and gold. Its geographical segments are The Americas, Europe, and Asia.