HECLA MINING CO (1HL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1HL - US4227041062 - Common Stock
23.25 EUR
-0.07 (-0.3%)
We assign a fundamental rating of 5 out of 10 to 1HL. 1HL was compared to 45 industry peers in the Metals & Mining industry. 1HL has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, 1HL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- 1HL had positive earnings in the past year.
- 1HL had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: 1HL reported negative net income in multiple years.
- Each year in the past 5 years 1HL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.17%, 1HL is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
- 1HL has a Return On Equity (8.11%) which is in line with its industry peers.
- 1HL has a Return On Invested Capital (6.28%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1HL is significantly below the industry average of 8.05%.
- The last Return On Invested Capital (6.28%) for 1HL is above the 3 year average (1.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 8.11% | ||
| ROIC | 6.28% |
ROA(3y)-0.98%
ROA(5y)-0.41%
ROE(3y)-1.5%
ROE(5y)-0.62%
ROIC(3y)1.02%
ROIC(5y)1.45%
1.3 Margins
- 1HL's Profit Margin of 16.22% is fine compared to the rest of the industry. 1HL outperforms 73.33% of its industry peers.
- 1HL's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 28.85%, 1HL belongs to the best of the industry, outperforming 82.22% of the companies in the same industry.
- 1HL's Operating Margin has declined in the last couple of years.
- The Gross Margin of 1HL (36.12%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of 1HL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.85% | ||
| PM (TTM) | 16.22% | ||
| GM | 36.12% |
OM growth 3Y-2.36%
OM growth 5YN/A
PM growth 3Y-3.91%
PM growth 5YN/A
GM growth 3Y-7.55%
GM growth 5Y33.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1HL is destroying value.
- The number of shares outstanding for 1HL has been increased compared to 1 year ago.
- 1HL has more shares outstanding than it did 5 years ago.
- 1HL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 15.17 indicates that 1HL is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1HL (15.17) is better than 93.33% of its industry peers.
- 1HL has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
- 1HL's Debt to FCF ratio of 1.52 is fine compared to the rest of the industry. 1HL outperforms 80.00% of its industry peers.
- 1HL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.11, 1HL is doing good in the industry, outperforming 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 15.17 |
ROIC/WACC0.6
WACC10.51%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that 1HL has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.15, 1HL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 1HL has a Quick Ratio of 1.51. This is a normal value and indicates that 1HL is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.51, 1HL is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 1300.00% over the past year.
- The earnings per share for 1HL have been decreasing by -17.17% on average. This is quite bad
- Looking at the last year, 1HL shows a very strong growth in Revenue. The Revenue has grown by 45.61%.
- 1HL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.67% yearly.
EPS 1Y (TTM)1300%
EPS 3Y-17.17%
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)45.61%
Revenue growth 3Y4.82%
Revenue growth 5Y6.67%
Sales Q2Q%67.1%
3.2 Future
- The Earnings Per Share is expected to grow by 39.34% on average over the next years. This is a very strong growth
- Based on estimates for the next years, 1HL will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y275.95%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
EPS Next 5Y39.34%
Revenue Next Year41.05%
Revenue Next 2Y27.32%
Revenue Next 3Y10.23%
Revenue Next 5Y6.83%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 101.09, 1HL can be considered very expensive at the moment.
- 64.44% of the companies in the same industry are cheaper than 1HL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. 1HL is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 34.91, 1HL can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, 1HL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- 1HL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.09 | ||
| Fwd PE | 34.91 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are cheaper than 1HL, based on the Enterprise Value to EBITDA ratio.
- 1HL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.99 | ||
| EV/EBITDA | 36.06 |
4.3 Compensation for Growth
- 1HL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1HL's earnings are expected to grow with 94.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.05%, 1HL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.67, 1HL is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, 1HL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
5.2 History
- The dividend of 1HL is nicely growing with an annual growth rate of 30.08%!
Dividend Growth(5Y)30.08%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1HL pays out 8.21% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1HL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.21%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
HECLA MINING CO / 1HL.MI FAQ
Can you provide the ChartMill fundamental rating for HECLA MINING CO?
ChartMill assigns a fundamental rating of 5 / 10 to 1HL.MI.
What is the valuation status for 1HL stock?
ChartMill assigns a valuation rating of 2 / 10 to HECLA MINING CO (1HL.MI). This can be considered as Overvalued.
How profitable is HECLA MINING CO (1HL.MI) stock?
HECLA MINING CO (1HL.MI) has a profitability rating of 5 / 10.
How financially healthy is HECLA MINING CO?
The financial health rating of HECLA MINING CO (1HL.MI) is 7 / 10.
What is the earnings growth outlook for HECLA MINING CO?
The Earnings per Share (EPS) of HECLA MINING CO (1HL.MI) is expected to grow by 275.95% in the next year.