HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
TSX:HBM - Toronto Stock Exchange - CA4436281022 - Common Stock - Currency: CAD
HBM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 807 industry peers in the Metals & Mining industry. While HBM has a great profitability rating, there are some minor concerns on its financial health. HBM is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make HBM suitable for value investing!
1. Profitability
1.1 Basic Checks
HBM had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.81%, HBM belongs to the top of the industry, outperforming 87.48% of the companies in the same industry.
With an excellent Return On Equity value of 5.83%, HBM belongs to the best of the industry, outperforming 88.72% of the companies in the same industry.
HBM has a better Return On Invested Capital (6.96%) than 92.32% of its industry peers.
HBM had an Average Return On Invested Capital over the past 3 years of 5.61%. This is significantly below the industry average of 12.23%.
The last Return On Invested Capital (6.96%) for HBM is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROIC | 6.96% |
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
Looking at the Profit Margin, with a value of 7.40%, HBM belongs to the top of the industry, outperforming 91.45% of the companies in the same industry.
HBM has a better Operating Margin (23.36%) than 93.31% of its industry peers.
In the last couple of years the Operating Margin of HBM has grown nicely.
Looking at the Gross Margin, with a value of 30.28%, HBM belongs to the top of the industry, outperforming 91.45% of the companies in the same industry.
HBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.36% | ||
| PM (TTM) | 7.4% | ||
| GM | 30.28% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HBM is destroying value.
HBM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HBM has more shares outstanding
The debt/assets ratio for HBM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.61, we must say that HBM is in the distress zone and has some risk of bankruptcy.
HBM has a Altman-Z score (1.61) which is in line with its industry peers.
The Debt to FCF ratio of HBM is 4.64, which is a neutral value as it means it would take HBM, 4.64 years of fcf income to pay off all of its debts.
HBM's Debt to FCF ratio of 4.64 is amongst the best of the industry. HBM outperforms 90.83% of its industry peers.
HBM has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
HBM has a worse Debt to Equity ratio (0.46) than 71.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.83
WACC8.34%
2.3 Liquidity
A Current Ratio of 2.32 indicates that HBM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.32, HBM is in line with its industry, outperforming 57.13% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that HBM should not have too much problems paying its short term obligations.
HBM has a Quick ratio (1.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
HBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.78%, which is quite impressive.
HBM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.11% yearly.
HBM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.92%.
Measured over the past years, HBM shows a quite strong growth in Revenue. The Revenue has been growing by 10.31% on average per year.
EPS 1Y (TTM)52.78%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)8.92%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%13.32%
3.2 Future
Based on estimates for the next years, HBM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.53% on average per year.
The Revenue is expected to grow by 5.15% on average over the next years.
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
With a Price/Earnings ratio of 17.44, HBM is valued on the expensive side.
Based on the Price/Earnings ratio, HBM is valued cheaper than 91.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of HBM to the average of the S&P500 Index (26.31), we can say HBM is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.14, the valuation of HBM can be described as correct.
89.96% of the companies in the same industry are more expensive than HBM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. HBM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 96.28% of the companies listed in the same industry.
HBM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HBM is cheaper than 94.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 4.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HBM 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)1.04
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
HBM has a yearly dividend return of 0.15%, which is pretty low.
HBM's Dividend Yield is rather good when compared to the industry average which is at 2.62. HBM pays more dividend than 94.42% of the companies in the same industry.
With a Dividend Yield of 0.15, HBM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
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
HBM pays out 3.69% of its income as dividend. This is a sustainable payout ratio.
DP3.69%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
TSX:HBM (6/12/2025, 7:00:00 PM)
13.08
+0.19 (+1.47%)
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 Cap5.17B
Analysts83
Price Target15.28 (16.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
Yearly Dividend0.02
Dividend Growth(5Y)-0.13%
DP3.69%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)53.32%
Min EPS beat(2)-3.49%
Max EPS beat(2)110.14%
EPS beat(4)2
Avg EPS beat(4)46.97%
Min EPS beat(4)-100%
Max EPS beat(4)181.22%
EPS beat(8)4
Avg EPS beat(8)37.18%
EPS beat(12)5
Avg EPS beat(12)12.96%
EPS beat(16)7
Avg EPS beat(16)17.19%
Revenue beat(2)1
Avg Revenue beat(2)3.82%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)9.21%
Revenue beat(4)2
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)9.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.67%
Revenue beat(12)4
Avg Revenue beat(12)-2.36%
Revenue beat(16)4
Avg Revenue beat(16)-2.81%
PT rev (1m)2.46%
PT rev (3m)0.37%
EPS NQ rev (1m)19.24%
EPS NQ rev (3m)-24.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.3%
Revenue NQ rev (1m)-3.87%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 14.14 | ||
| P/S | 1.81 | ||
| P/FCF | 13.94 | ||
| P/OCF | 5.82 | ||
| P/B | 1.43 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)0.75
EY5.73%
EPS(NY)0.93
Fwd EY7.07%
FCF(TTM)0.94
FCFY7.17%
OCF(TTM)2.25
OCFY17.19%
SpS7.22
BVpS9.16
TBVpS8.9
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROCE | 9.67% | ||
| ROIC | 6.96% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 8% | ||
| OM | 23.36% | ||
| PM (TTM) | 7.4% | ||
| GM | 30.28% | ||
| FCFM | 13% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 88.94% | ||
| Cap/Sales | 18.15% | ||
| Interest Coverage | 7.29 | ||
| Cash Conversion | 71.17% | ||
| Profit Quality | 175.64% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 1.61 |
F-Score8
WACC8.34%
ROIC/WACC0.83
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)8.92%
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 1Y27.06%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year126.4%
EBIT Next 3Y37.44%
EBIT Next 5Y24.95%
FCF growth 1Y52.9%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y31.37%
OCF growth 3Y20.18%
OCF growth 5Y16.47%