HUDBAY MINERALS INC (HBM)
CA4436281022 - Common Stock
We assign a fundamental rating of 3 out of 10 to HBM. HBM was compared to 154 industry peers in the Metals & Mining industry. HBM has a bad profitability rating. Also its financial health evaluation is rather negative. HBM is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years HBM reported negative net income over the last 5 years.
Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
HBM has a Return On Assets of 0.35%. This is comparable to the rest of the industry: HBM outperforms 57.14% of its industry peers.
HBM has a Return On Equity of 0.89%. This is comparable to the rest of the industry: HBM outperforms 57.79% of its industry peers.
HBM has a Return On Invested Capital of 2.40%. This is comparable to the rest of the industry: HBM outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBM is below the industry average of 8.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.89% | ||
| ROIC | 2.4% |
ROA(3y)-0.81%
ROA(5y)-2.64%
ROE(3y)-2.97%
ROE(5y)-7.2%
ROIC(3y)4.02%
ROIC(5y)N/A
1.3 Margins
HBM has a Profit Margin (1.29%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HBM has declined.
HBM's Operating Margin of 13.55% is fine compared to the rest of the industry. HBM outperforms 72.08% of its industry peers.
HBM's Operating Margin has declined in the last couple of years.
HBM has a Gross Margin (18.84%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HBM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.55% | ||
| PM (TTM) | 1.29% | ||
| GM | 18.84% |
OM growth 3YN/A
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5Y-7.5%
GM growth 3Y86.69%
GM growth 5Y-1.76%
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
Based on the Altman-Z score of 0.92, we must say that HBM is in the distress zone and has some risk of bankruptcy.
HBM's Altman-Z score of 0.92 is on the low side compared to the rest of the industry. HBM is outperformed by 71.43% of its industry peers.
HBM has a debt to FCF ratio of 32.76. This is a negative value and a sign of low solvency as HBM would need 32.76 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 32.76, HBM is doing good in the industry, outperforming 61.69% of the companies in the same industry.
HBM has a Debt/Equity ratio of 0.70. This is a neutral value indicating HBM is somewhat dependend on debt financing.
HBM's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. HBM is outperformed by 83.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 32.76 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.36
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.26 indicates that HBM should not have too much problems paying its short term obligations.
HBM's Current ratio of 1.26 is on the low side compared to the rest of the industry. HBM is outperformed by 81.82% of its industry peers.
A Quick Ratio of 0.78 indicates that HBM may have some problems paying its short term obligations.
HBM has a Quick ratio of 0.78. This is amonst the worse of the industry: HBM underperforms 85.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for HBM have decreased strongly by -95.45% in the last year.
Measured over the past years, HBM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.94% on average per year.
HBM shows a decrease in Revenue. In the last year, the revenue decreased by -9.99%.
HBM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.80% yearly.
EPS 1Y (TTM)-95.45%
EPS 3YN/A
EPS 5Y-12.94%
EPS growth Q2Q240%
Revenue 1Y (TTM)-9.99%
Revenue growth 3Y15.66%
Revenue growth 5Y2.8%
Revenue growth Q2Q38.79%
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 40.88% on average per year.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y136.34%
EPS Next 2Y92%
EPS Next 3Y43.9%
EPS Next 5Y40.88%
Revenue Next Year17.8%
Revenue Next 2Y12.62%
Revenue Next 3Y6.61%
Revenue Next 5Y9.25%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 832.00, the valuation of HBM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as HBM.
HBM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
Based on the Price/Forward Earnings ratio of 17.60, the valuation of HBM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 66.23% of the companies listed in the same industry.
HBM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 832 | ||
| Fwd PE | 17.6 |
4.2 Price Multiples
HBM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HBM is cheaper than 69.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued a bit cheaper than the industry average as 66.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.47 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HBM's earnings are expected to grow with 43.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.1
PEG (5Y)N/A
EPS Next 2Y92%
EPS Next 3Y43.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.18%, HBM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.91, HBM has a dividend in line with its industry peers.
With a Dividend Yield of 0.18, HBM pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
The dividend of HBM decreases each year by -0.93%.
HBM has been paying a dividend for at least 10 years, so it has a reliable track record.
As HBM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.93%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
24.51% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP24.51%
EPS Next 2Y92%
EPS Next 3Y43.9%
HUDBAY MINERALS INC
NYSE:HBM (5/2/2024, 7:04:00 PM)
After market: 8.32 0 (0%)8.32
-0.01 (-0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 832 | ||
| Fwd PE | 17.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.55% | ||
| PM (TTM) | 1.29% | ||
| GM | 18.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-95.45%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y136.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.99%
Revenue growth 3Y15.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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