HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
TSX:HBM - Toronto Stock Exchange - CA4436281022 - Common Stock - Currency: CAD
Overall HBM gets a fundamental rating of 6 out of 10. We evaluated HBM against 801 industry peers in the Metals & Mining industry. HBM scores excellent on profitability, but there are some minor concerns on its financial health. HBM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HBM was profitable.
HBM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HBM reported negative net income in multiple years.
Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
HBM's Return On Assets of 1.40% is amongst the best of the industry. HBM outperforms 86.89% of its industry peers.
HBM's Return On Equity of 3.00% is amongst the best of the industry. HBM outperforms 88.26% of its industry peers.
HBM has a better Return On Invested Capital (6.22%) than 92.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBM is significantly below the industry average of 24.98%.
The 3 year average ROIC (5.61%) for HBM is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROIC | 6.22% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)5.61%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HBM (3.79%) is better than 90.39% of its industry peers.
Looking at the Operating Margin, with a value of 21.17%, HBM belongs to the top of the industry, outperforming 93.13% of the companies in the same industry.
In the last couple of years the Operating Margin of HBM has grown nicely.
The Gross Margin of HBM (27.40%) is better than 90.89% of its industry peers.
HBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 3.79% | ||
| GM | 27.4% |
OM growth 3Y11.98%
OM growth 5Y50.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.24%
GM growth 5Y17.48%
2. Health
2.1 Basic Checks
HBM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HBM has more shares outstanding
HBM has more shares outstanding than it did 5 years ago.
HBM has a better debt/assets ratio than last year.
2.2 Solvency
HBM has an Altman-Z score of 1.41. This is a bad value and indicates that HBM is not financially healthy and even has some risk of bankruptcy.
HBM has a Altman-Z score (1.41) which is in line with its industry peers.
The Debt to FCF ratio of HBM is 3.97, which is a good value as it means it would take HBM, 3.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HBM (3.97) is better than 92.13% of its industry peers.
HBM has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, HBM is doing worse than 71.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.73
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.95 indicates that HBM should not have too much problems paying its short term obligations.
HBM has a Current ratio (1.95) which is in line with its industry peers.
HBM has a Quick Ratio of 1.58. This is a normal value and indicates that HBM is financially healthy and should not expect problems in meeting its short term obligations.
HBM has a Quick ratio (1.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.78% over the past year.
HBM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.11% yearly.
The Revenue has grown by 19.60% in the past year. This is quite good.
The Revenue has been growing by 10.31% on average over the past years. This is quite good.
EPS 1Y (TTM)52.78%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)19.6%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%13.32%
3.2 Future
The Earnings Per Share is expected to grow by 16.53% on average over the next years. This is quite good.
Based on estimates for the next years, HBM will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y16.79%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
EPS Next 5Y16.53%
Revenue Next Year7.01%
Revenue Next 2Y3.92%
Revenue Next 3Y4.05%
Revenue Next 5Y5.15%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HBM is valuated correctly with a Price/Earnings ratio of 15.91.
91.64% of the companies in the same industry are more expensive than HBM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.82. HBM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.85, which indicates a correct valuation of HBM.
91.14% of the companies in the same industry are more expensive than HBM, based on the Price/Forward Earnings ratio.
HBM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaply inside the industry as 95.76% of the companies are valued more expensively.
95.88% of the companies in the same industry are more expensive than HBM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 4.65 |
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.
HBM has an outstanding profitability rating, which may justify a higher PE ratio.
HBM's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.17%, HBM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.83, HBM pays a better dividend. On top of this HBM pays more dividend than 94.26% of the companies listed in the same industry.
With a Dividend Yield of 0.17, HBM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
5.2 History
The dividend of HBM decreases each year by -0.13%.
HBM has been paying a dividend for at least 10 years, so it has a reliable track record.
HBM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.13%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
7.17% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP7.17%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
TSX:HBM (5/23/2025, 7:00:00 PM)
12.09
+0.36 (+3.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap4.78B
Analysts83
Price Target14.92 (23.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.02
Dividend Growth(5Y)-0.13%
DP7.17%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)88.86%
Min EPS beat(2)-3.49%
Max EPS beat(2)181.22%
EPS beat(4)2
Avg EPS beat(4)90.39%
Min EPS beat(4)-100%
Max EPS beat(4)283.85%
EPS beat(8)3
Avg EPS beat(8)10.91%
EPS beat(12)4
Avg EPS beat(12)-2.99%
EPS beat(16)6
Avg EPS beat(16)-6.59%
Revenue beat(2)1
Avg Revenue beat(2)2.14%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)5.84%
Revenue beat(4)2
Avg Revenue beat(4)2.82%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)14.02%
Revenue beat(8)2
Avg Revenue beat(8)-4.1%
Revenue beat(12)3
Avg Revenue beat(12)-3.59%
Revenue beat(16)3
Avg Revenue beat(16)-4.3%
PT rev (1m)-1.09%
PT rev (3m)-7.25%
EPS NQ rev (1m)-15.17%
EPS NQ rev (3m)-39.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-36.86%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)9.23%
Revenue NY rev (1m)4.25%
Revenue NY rev (3m)-3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.91 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.7 | ||
| P/FCF | 10.86 | ||
| P/OCF | 5.17 | ||
| P/B | 1.35 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 4.65 |
EPS(TTM)0.76
EY6.29%
EPS(NY)0.94
Fwd EY7.78%
FCF(TTM)1.11
FCFY9.21%
OCF(TTM)2.34
OCFY19.34%
SpS7.09
BVpS8.96
TBVpS8.7
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROCE | 8.64% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 7.18% | ||
| OM | 21.17% | ||
| PM (TTM) | 3.79% | ||
| GM | 27.4% | ||
| FCFM | 15.7% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)5.61%
ROIC(5y)N/A
ROICexc(3y)6.09%
ROICexc(5y)N/A
ROICexgc(3y)6.21%
ROICexgc(5y)N/A
ROCE(3y)7.79%
ROCE(5y)N/A
ROICexcg growth 3Y18.86%
ROICexcg growth 5Y61.23%
ROICexc growth 3Y18.39%
ROICexc growth 5Y60.76%
OM growth 3Y11.98%
OM growth 5Y50.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.24%
GM growth 5Y17.48%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 81.52% | ||
| Cap/Sales | 17.26% | ||
| Interest Coverage | 6.3 | ||
| Cash Conversion | 77.84% | ||
| Profit Quality | 413.69% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.41 |
F-Score8
WACC8.5%
ROIC/WACC0.73
Cap/Depr(3y)81.38%
Cap/Depr(5y)89.68%
Cap/Sales(3y)18.35%
Cap/Sales(5y)22.65%
Profit Quality(3y)320.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.78%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y16.79%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
EPS Next 5Y16.53%
Revenue 1Y (TTM)19.6%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%13.32%
Revenue Next Year7.01%
Revenue Next 2Y3.92%
Revenue Next 3Y4.05%
Revenue Next 5Y5.15%
EBIT growth 1Y36.06%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year99.68%
EBIT Next 3Y34.42%
EBIT Next 5Y24.95%
FCF growth 1Y62.09%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y39.71%
OCF growth 3Y20.18%
OCF growth 5Y16.47%