HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
NYSE:HBM - New York Stock Exchange, Inc. - CA4436281022 - Common Stock - Currency: USD
Overall HBM gets a fundamental rating of 5 out of 10. We evaluated HBM against 154 industry peers in the Metals & Mining industry. HBM has only an average score on both its financial health and profitability. HBM is not valued too expensively and it also shows a decent growth rate.
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.
HBM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.81%, HBM is doing good in the industry, outperforming 68.83% of the companies in the same industry.
With a decent Return On Equity value of 5.83%, HBM is doing good in the industry, outperforming 70.13% of the companies in the same industry.
The Return On Invested Capital of HBM (7.64%) is better than 73.38% of its industry peers.
HBM had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 11.67%.
The 3 year average ROIC (6.15%) for HBM is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROIC | 7.64% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)6.15%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HBM (7.40%) is better than 76.62% of its industry peers.
Looking at the Operating Margin, with a value of 23.36%, HBM is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
HBM's Operating Margin has improved in the last couple of years.
HBM has a better Gross Margin (30.28%) than 70.13% of its industry peers.
In the last couple of years the Gross Margin of HBM has grown nicely.
| 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
HBM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HBM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HBM has been increased compared to 5 years ago.
Compared to 1 year ago, HBM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that HBM is in the distress zone and has some risk of bankruptcy.
HBM has a worse Altman-Z score (1.69) than 65.58% of its industry peers.
HBM has a debt to FCF ratio of 4.64. This is a neutral value as HBM would need 4.64 years to pay back of all of its debts.
HBM has a better Debt to FCF ratio (4.64) than 70.13% 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's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. HBM is outperformed by 75.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.88
WACC8.64%
2.3 Liquidity
A Current Ratio of 2.32 indicates that HBM has no problem at all paying its short term obligations.
HBM has a Current ratio of 2.32. This is comparable to the rest of the industry: HBM outperforms 48.70% of its industry peers.
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 of 1.92. This is comparable to the rest of the industry: HBM outperforms 58.44% of its industry peers.
| 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.
The Earnings Per Share has been growing by 25.11% on average over the past years. This is a very strong growth
Looking at the last year, HBM shows a quite strong growth in Revenue. The Revenue has grown by 8.92% in the last year.
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)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.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.80, the valuation of HBM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 77.92% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HBM to the average of the S&P500 Index (27.19), we can say HBM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.24, HBM is valued correctly.
Based on the Price/Forward Earnings ratio, HBM is valued a bit cheaper than 61.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. HBM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaply inside the industry as 88.96% of the companies are valued more expensively.
HBM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HBM is cheaper than 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
HBM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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)1.12
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, HBM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.90, HBM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.13%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
3.69% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP3.69%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
10.34
-0.13 (-1.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners66.56%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap4.08B
Analysts83
Price Target11.26 (8.9%)
Short Float %1.07%
Short Ratio0.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.01
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)1.02%
PT rev (3m)7.33%
EPS NQ rev (1m)2.63%
EPS NQ rev (3m)22.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 15.24 | ||
| P/S | 1.95 | ||
| P/FCF | 15.03 | ||
| P/OCF | 6.27 | ||
| P/B | 1.54 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)0.55
EY5.32%
EPS(NY)0.68
Fwd EY6.56%
FCF(TTM)0.69
FCFY6.65%
OCF(TTM)1.65
OCFY15.95%
SpS5.29
BVpS6.72
TBVpS6.53
PEG (NY)1.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROCE | 9.67% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.63% | ||
| ROICexgc | 8.78% | ||
| 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)6.15%
ROIC(5y)N/A
ROICexc(3y)6.68%
ROICexc(5y)N/A
ROICexgc(3y)6.81%
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 | 1.69 |
F-Score8
WACC8.64%
ROIC/WACC0.88
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%