HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
USA - NYSE:HBM - CA4436281022 - Common Stock
17.31 USD
+0.28 (+1.64%)
17.557 USD
+0.25 (+1.43%)
We assign a fundamental rating of 6 out of 10 to HBM. HBM was compared to 156 industry peers in the Metals & Mining industry. HBM scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HBM.
1. Profitability
1.1 Basic Checks
HBM had positive earnings in the past year.
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 (5.13%) than 75.00% of its industry peers.
With a decent Return On Equity value of 10.09%, HBM is doing good in the industry, outperforming 76.28% of the companies in the same industry.
HBM has a Return On Invested Capital of 10.15%. This is amongst the best in the industry. HBM outperforms 83.33% 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 12.18%.
The last Return On Invested Capital (10.15%) for HBM is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.09% | ||
| ROIC | 10.15% |
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 has a better Profit Margin (13.13%) than 78.85% of its industry peers.
With an excellent Operating Margin value of 26.94%, HBM belongs to the best of the industry, outperforming 80.13% of the companies in the same industry.
HBM's Operating Margin has improved in the last couple of years.
HBM has a Gross Margin of 33.24%. This is in the better half of the industry: HBM outperforms 73.08% of its industry peers.
HBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.94% | ||
| PM (TTM) | 13.13% | ||
| GM | 33.24% |
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) just above the Cost of Capital (WACC), HBM is creating some 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.
HBM has a better debt/assets ratio than last year.
2.2 Solvency
HBM has an Altman-Z score of 2.27. 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.
HBM has a worse Altman-Z score (2.27) than 65.38% of its industry peers.
The Debt to FCF ratio of HBM is 3.38, which is a good value as it means it would take HBM, 3.38 years of fcf income to pay off all of its debts.
HBM's Debt to FCF ratio of 3.38 is fine compared to the rest of the industry. HBM outperforms 73.72% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that HBM is not too dependend on debt financing.
HBM has a Debt to Equity ratio (0.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.38 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.16
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.03 indicates that HBM should not have too much problems paying its short term obligations.
HBM's Current ratio of 1.03 is on the low side compared to the rest of the industry. HBM is outperformed by 82.69% of its industry peers.
HBM has a Quick Ratio of 1.03. 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 worse Quick ratio (0.86) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 72.09% 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 quite strong growth in Revenue. The Revenue has grown by 8.30% 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)72.09%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%760.89%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%26.06%
3.2 Future
The Earnings Per Share is expected to grow by 24.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y77.92%
EPS Next 2Y42.25%
EPS Next 3Y35.82%
EPS Next 5Y24.55%
Revenue Next Year12.94%
Revenue Next 2Y6.02%
Revenue Next 3Y7.01%
Revenue Next 5Y7.62%
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 stable.
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
A Price/Earnings ratio of 23.39 indicates a rather expensive valuation of HBM.
HBM's Price/Earnings ratio is a bit cheaper when compared to the industry. HBM is cheaper than 77.56% of the companies in the same industry.
HBM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.49.
With a Price/Forward Earnings ratio of 18.20, HBM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HBM is valued a bit cheaper than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HBM to the average of the S&P500 Index (22.99), we can say HBM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 18.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaper than 87.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 86.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 7.19 |
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 35.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y42.25%
EPS Next 3Y35.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, HBM is not a good candidate for dividend investing.
HBM's Dividend Yield is comparable with the industry average which is at 2.41.
Compared to an average S&P500 Dividend Yield of 2.43, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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
HBM pays out 1.98% of its income as dividend. This is a sustainable payout ratio.
DP1.98%
EPS Next 2Y42.25%
EPS Next 3Y35.82%
17.31
+0.28 (+1.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.14%
Inst Owner Change-0.51%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap6.85B
Analysts83.81
Price Target13.68 (-20.97%)
Short Float %2.34%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.01
Dividend Growth(5Y)-0.13%
DP1.98%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)88.18%
Min EPS beat(2)66.23%
Max EPS beat(2)110.14%
EPS beat(4)3
Avg EPS beat(4)88.52%
Min EPS beat(4)-3.49%
Max EPS beat(4)181.22%
EPS beat(8)5
Avg EPS beat(8)71.51%
EPS beat(12)6
Avg EPS beat(12)18.68%
EPS beat(16)8
Avg EPS beat(16)26.45%
Revenue beat(2)1
Avg Revenue beat(2)4.56%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)9.21%
Revenue beat(4)2
Avg Revenue beat(4)3.35%
Min Revenue beat(4)-1.56%
Max Revenue beat(4)9.21%
Revenue beat(8)3
Avg Revenue beat(8)-0.08%
Revenue beat(12)4
Avg Revenue beat(12)-2.04%
Revenue beat(16)4
Avg Revenue beat(16)-2.67%
PT rev (1m)5.27%
PT rev (3m)21.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.37%
EPS NY rev (1m)4.79%
EPS NY rev (3m)52.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)5.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 18.2 | ||
| P/S | 3.11 | ||
| P/FCF | 19.01 | ||
| P/OCF | 8.86 | ||
| P/B | 2.39 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)0.74
EY4.27%
EPS(NY)0.95
Fwd EY5.49%
FCF(TTM)0.91
FCFY5.26%
OCF(TTM)1.95
OCFY11.28%
SpS5.57
BVpS7.24
TBVpS7.03
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 10.09% | ||
| ROCE | 12.85% | ||
| ROIC | 10.15% | ||
| ROICexc | 11.74% | ||
| ROICexgc | 11.99% | ||
| OM | 26.94% | ||
| PM (TTM) | 13.13% | ||
| GM | 33.24% | ||
| FCFM | 16.36% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.38 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 96.95% | ||
| Cap/Sales | 18.73% | ||
| Interest Coverage | 9.2 | ||
| Cash Conversion | 75.85% | ||
| Profit Quality | 124.63% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.27 |
F-Score7
WACC8.79%
ROIC/WACC1.16
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)72.09%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%760.89%
EPS Next Y77.92%
EPS Next 2Y42.25%
EPS Next 3Y35.82%
EPS Next 5Y24.55%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%26.06%
Revenue Next Year12.94%
Revenue Next 2Y6.02%
Revenue Next 3Y7.01%
Revenue Next 5Y7.62%
EBIT growth 1Y39.99%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year145.38%
EBIT Next 3Y40.82%
EBIT Next 5Y27.84%
FCF growth 1Y624.49%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y117.84%
OCF growth 3Y20.18%
OCF growth 5Y16.47%