HECLA MINING CO (1HL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HL - US4227041062 - Common Stock
27.01 EUR
+3.69 (+15.82%)
1HL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Metals & Mining industry. While 1HL has a great health rating, its profitability is only average at the moment. 1HL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1HL was profitable.
- 1HL had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 1HL reported negative net income in multiple years.
- In the past 5 years 1HL always reported a positive cash flow from operatings.
1.2 Ratios
- 1HL has a Return On Assets of 6.17%. This is in the better half of the industry: 1HL outperforms 63.64% of its industry peers.
- Looking at the Return On Equity, with a value of 8.11%, 1HL is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 1HL's Return On Invested Capital of 6.28% is in line compared to the rest of the industry. 1HL outperforms 52.27% of its industry peers.
- 1HL had an Average Return On Invested Capital over the past 3 years of 1.02%. This is significantly below the industry average of 8.05%.
- The 3 year average ROIC (1.02%) for 1HL is below the current ROIC(6.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 8.11% | ||
| ROIC | 6.28% |
ROA(3y)-0.98%
ROA(5y)-0.41%
ROE(3y)-1.5%
ROE(5y)-0.62%
ROIC(3y)1.02%
ROIC(5y)1.45%
1.3 Margins
- The Profit Margin of 1HL (16.22%) is better than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of 1HL has declined.
- Looking at the Operating Margin, with a value of 28.85%, 1HL belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
- 1HL's Operating Margin has declined in the last couple of years.
- 1HL has a Gross Margin of 36.12%. This is in the better half of the industry: 1HL outperforms 61.36% of its industry peers.
- 1HL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.85% | ||
| PM (TTM) | 16.22% | ||
| GM | 36.12% |
OM growth 3Y-2.36%
OM growth 5YN/A
PM growth 3Y-3.91%
PM growth 5YN/A
GM growth 3Y-7.55%
GM growth 5Y33.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1HL is destroying value.
- Compared to 1 year ago, 1HL has more shares outstanding
- The number of shares outstanding for 1HL has been increased compared to 5 years ago.
- The debt/assets ratio for 1HL has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 17.20 indicates that 1HL is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 17.20, 1HL belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
- The Debt to FCF ratio of 1HL is 1.52, which is an excellent value as it means it would take 1HL, only 1.52 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1HL (1.52) is better than 81.82% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that 1HL is not too dependend on debt financing.
- 1HL's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. 1HL outperforms 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 17.2 |
ROIC/WACC0.61
WACC10.35%
2.3 Liquidity
- 1HL has a Current Ratio of 2.15. This indicates that 1HL is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.15, 1HL is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- A Quick Ratio of 1.51 indicates that 1HL should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.51, 1HL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- 1HL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1300.00%, which is quite impressive.
- The earnings per share for 1HL have been decreasing by -17.17% on average. This is quite bad
- Looking at the last year, 1HL shows a very strong growth in Revenue. The Revenue has grown by 45.61%.
- Measured over the past years, 1HL shows a small growth in Revenue. The Revenue has been growing by 6.67% on average per year.
EPS 1Y (TTM)1300%
EPS 3Y-17.17%
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)45.61%
Revenue growth 3Y4.82%
Revenue growth 5Y6.67%
Sales Q2Q%67.1%
3.2 Future
- Based on estimates for the next years, 1HL will show a very strong growth in Earnings Per Share. The EPS will grow by 39.34% on average per year.
- 1HL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.83% yearly.
EPS Next Y275.95%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
EPS Next 5Y39.34%
Revenue Next Year41.05%
Revenue Next 2Y27.32%
Revenue Next 3Y10.23%
Revenue Next 5Y6.83%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 112.54, which means the current valuation is very expensive for 1HL.
- 65.91% of the companies in the same industry are cheaper than 1HL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. 1HL is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 39.92, the valuation of 1HL can be described as expensive.
- Based on the Price/Forward Earnings ratio, 1HL is valued a bit more expensive than 70.45% of the companies in the same industry.
- 1HL is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.54 | ||
| Fwd PE | 39.92 |
4.2 Price Multiples
- 1HL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1HL is more expensive than 75.00% of the companies in the same industry.
- 1HL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.63 | ||
| EV/EBITDA | 41.07 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of 1HL may justify a higher PE ratio.
- A more expensive valuation may be justified as 1HL's earnings are expected to grow with 94.33% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.05%, 1HL is not a good candidate for dividend investing.
- 1HL's Dividend Yield is slightly below the industry average, which is at 1.67.
- With a Dividend Yield of 0.05, 1HL pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
5.2 History
- The dividend of 1HL is nicely growing with an annual growth rate of 30.08%!
Dividend Growth(5Y)30.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1HL pays out 8.21% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1HL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.21%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
HECLA MINING CO / 1HL.MI FAQ
Can you provide the ChartMill fundamental rating for HECLA MINING CO?
ChartMill assigns a fundamental rating of 6 / 10 to 1HL.MI.
What is the valuation status for 1HL stock?
ChartMill assigns a valuation rating of 3 / 10 to HECLA MINING CO (1HL.MI). This can be considered as Overvalued.
How profitable is HECLA MINING CO (1HL.MI) stock?
HECLA MINING CO (1HL.MI) has a profitability rating of 6 / 10.
How financially healthy is HECLA MINING CO?
The financial health rating of HECLA MINING CO (1HL.MI) is 7 / 10.
What is the earnings growth outlook for HECLA MINING CO?
The Earnings per Share (EPS) of HECLA MINING CO (1HL.MI) is expected to grow by 275.95% in the next year.