What changed
$SCCO — Mining and producing copper in Peru.
🎯 Q1 FY26 | Rev $4B | EPS $1.92 vs $1.81 🟢 | Margin 58.6%
💡 Consensus expects SCCO to benefit from elevated copper prices but models a gradual normalization. The 1Q26 beat (EPS $1.92 vs $1.81) was driven by a 36% revenue surge and 59% operating margin, well above the 50% historical norm.
🏢 Business Quality: 9/10 | Valuation: fair, 12-14x forward EPS (based on FY26 consensus of ~$7.18, P/E ~24x; but using normalized copper price scenario of $4.50/lb yields EPS ~$8.50, P/E ~20.5x). Relative to historical P/E range of 15-25x, current is mid-range. On EV/EBITDA (~10x vs 8-12x historical), it's fair. Not cheap, but not rich given the copper cycle tailwind.
📉 Reward/Risk: Upside: 15-25% to $200-$220 (12-14x normalized EPS $8.50) over 3 months. Downside: 10-15% to $150-$155 (if copper drops to $3.80 and P/E compresses to 18x).