HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HBM - CA4436281022 - Common Stock
34.24 CAD
+0.98 (+2.95%)
We assign a fundamental rating of 6 out of 10 to HBM. HBM was compared to 820 industry peers in the Metals & Mining industry. While HBM has a great profitability rating, there are quite some concerns on its financial health. HBM is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- In the past year HBM was profitable.
- In the past year HBM had a positive cash flow from operations.
- 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 has a better Return On Assets (7.80%) than 91.31% of its industry peers.
- With an excellent Return On Equity value of 14.99%, HBM belongs to the best of the industry, outperforming 93.39% of the companies in the same industry.
- HBM has a better Return On Invested Capital (7.37%) than 92.29% 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 12.04%.
- The last Return On Invested Capital (7.37%) for HBM is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 14.99% | ||
| ROIC | 7.37% |
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
- HBM has a better Profit Margin (22.38%) than 94.61% of its industry peers.
- HBM has a Operating Margin of 24.24%. This is amongst the best in the industry. HBM outperforms 93.15% of its industry peers.
- HBM's Operating Margin has improved in the last couple of years.
- The Gross Margin of HBM (31.87%) is better than 91.31% of its industry peers.
- HBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 22.38% | ||
| GM | 31.87% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HBM is destroying value.
- Compared to 1 year ago, HBM has more shares outstanding
- Compared to 5 years ago, HBM has more shares outstanding
- HBM has a better debt/assets ratio than last year.
2.2 Solvency
- HBM has an Altman-Z score of 2.81. This is not the best score and indicates that HBM is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.81, HBM perfoms like the industry average, outperforming 47.00% of the companies in the same industry.
- The Debt to FCF ratio of HBM is 3.78, which is a good value as it means it would take HBM, 3.78 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HBM (3.78) is better than 91.68% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that HBM is not too dependend on debt financing.
- HBM's Debt to Equity ratio of 0.20 is on the low side compared to the rest of the industry. HBM is outperformed by 66.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.78
WACC9.47%
2.3 Liquidity
- HBM has a Current Ratio of 0.97. This is a bad value and indicates that HBM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of HBM (0.97) is worse than 60.34% of its industry peers.
- HBM has a Quick Ratio of 0.97. This is a bad value and indicates that HBM is not financially healthy enough and could expect problems in meeting its short term obligations.
- HBM has a Quick ratio of 0.76. This is in the lower half of the industry: HBM underperforms 62.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.61% 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.
- Looking at the last year, HBM shows a small growth in Revenue. The Revenue has grown by 1.20% in the last year.
- HBM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.31% yearly.
EPS 1Y (TTM)30.61%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-76.92%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%-28.61%
3.2 Future
- Based on estimates for the next years, HBM will show a very strong growth in Earnings Per Share. The EPS will grow by 37.29% on average per year.
- The Revenue is expected to grow by 11.38% on average over the next years. This is quite good.
EPS Next Y86.96%
EPS Next 2Y79.17%
EPS Next 3Y57.98%
EPS Next 5Y37.29%
Revenue Next Year9.8%
Revenue Next 2Y10.99%
Revenue Next 3Y10.76%
Revenue Next 5Y11.38%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 38.91, HBM can be considered very expensive at the moment.
- HBM's Price/Earnings ratio is rather cheap when compared to the industry. HBM is cheaper than 89.47% of the companies in the same industry.
- HBM is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 16.49, which indicates a correct valuation of HBM.
- HBM's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBM is cheaper than 91.55% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HBM to the average of the S&P500 Index (25.98), we can say HBM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.91 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
- HBM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HBM is cheaper than 95.23% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HBM is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.29 | ||
| EV/EBITDA | 11.46 |
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.
- A more expensive valuation may be justified as HBM's earnings are expected to grow with 57.98% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y79.17%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
- HBM has a yearly dividend return of 0.06%, which is pretty low.
- HBM's Dividend Yield is rather good when compared to the industry average which is at 0.56. HBM pays more dividend than 94.37% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
5.2 History
- The dividend of HBM decreases each year by -0.13%.
- HBM has paid a dividend for at least 10 years, which is 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
- HBM pays out 1.22% of its income as dividend. This is a sustainable payout ratio.
DP1.22%
EPS Next 2Y79.17%
EPS Next 3Y57.98%
HUDBAY MINERALS INC / HBM.CA FAQ
What is the fundamental rating for HBM stock?
ChartMill assigns a fundamental rating of 6 / 10 to HBM.CA.
What is the valuation status for HBM stock?
ChartMill assigns a valuation rating of 7 / 10 to HUDBAY MINERALS INC (HBM.CA). This can be considered as Undervalued.
What is the profitability of HBM stock?
HUDBAY MINERALS INC (HBM.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for HBM stock?
The financial health rating of HUDBAY MINERALS INC (HBM.CA) is 3 / 10.
What is the expected EPS growth for HUDBAY MINERALS INC (HBM.CA) stock?
The Earnings per Share (EPS) of HUDBAY MINERALS INC (HBM.CA) is expected to grow by 86.96% in the next year.