HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
NYSE:HBM - New York Stock Exchange, Inc. - CA4436281022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HBM. HBM was compared to 153 industry peers in the Metals & Mining industry. Both the profitability and the financial health of HBM get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on HBM.
1. Profitability
1.1 Basic Checks
In the past year HBM was profitable.
HBM had a positive operating cash flow in the past year.
In multiple years HBM reported negative net income over the last 5 years.
HBM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HBM has a better Return On Assets (1.40%) than 62.99% of its industry peers.
Looking at the Return On Equity, with a value of 3.00%, HBM is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
HBM's Return On Invested Capital of 6.83% is fine compared to the rest of the industry. HBM outperforms 72.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBM is below the industry average of 8.60%.
The last Return On Invested Capital (6.83%) for HBM is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROIC | 6.83% |
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
HBM's Profit Margin of 3.79% is fine compared to the rest of the industry. HBM outperforms 68.83% of its industry peers.
HBM has a better Operating Margin (21.17%) than 75.97% 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 27.40%, HBM is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HBM is destroying value.
The number of shares outstanding for HBM has been increased compared to 1 year ago.
The number of shares outstanding for HBM has been increased compared to 5 years ago.
The debt/assets ratio for HBM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that HBM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.44, HBM is doing worse than 64.94% of the companies in the same industry.
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.
HBM has a better Debt to FCF ratio (3.97) than 71.43% 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 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.78
WACC8.71%
2.3 Liquidity
HBM has a Current Ratio of 1.95. 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 Current ratio (1.95) which is comparable to the rest of the industry.
A Quick Ratio of 1.58 indicates that HBM should not have too much problems paying its short term obligations.
HBM's Quick ratio of 1.58 is in line compared to the rest of the industry. HBM outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.58 |
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 19.60% 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)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.
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
The Price/Earnings ratio is 16.02, which indicates a correct valuation of HBM.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 81.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, HBM is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.98 indicates a correct valuation of HBM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 62.99% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HBM to the average of the S&P500 Index (21.77), we can say HBM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaper than 89.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaply inside the industry as 88.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 4.81 |
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 a very decent 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.
HBM's Dividend Yield is comparable with the industry average which is at 2.97.
With a Dividend Yield of 0.17, HBM pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
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 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
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%
8.81
+0.33 (+3.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner Change-10.99%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap3.48B
Analysts83
Price Target10.82 (22.81%)
Short Float %2.46%
Short Ratio1.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.17% |
Yearly Dividend0.01
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)3.09%
PT rev (3m)-3.09%
EPS NQ rev (1m)-21.53%
EPS NQ rev (3m)-43.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.3%
Revenue NQ rev (1m)-6.06%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-3.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.72 | ||
| P/FCF | 10.97 | ||
| P/OCF | 5.22 | ||
| P/B | 1.36 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)0.55
EY6.24%
EPS(NY)0.68
Fwd EY7.7%
FCF(TTM)0.8
FCFY9.12%
OCF(TTM)1.69
OCFY19.14%
SpS5.12
BVpS6.46
TBVpS6.27
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROCE | 8.64% | ||
| ROIC | 6.83% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 7.87% | ||
| 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)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 Turnover0.37
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 | 1.44 |
F-Score8
WACC8.71%
ROIC/WACC0.78
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 Year126.4%
EBIT Next 3Y37.44%
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%