HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:HBM • CA4436281022
32.25 CAD
-4.01 (-11.06%)
Last: Jan 30, 2026, 07:00 PM
Overall HBM gets a fundamental rating of 6 out of 10. We evaluated HBM against 814 industry peers in the Metals & Mining industry. HBM has an excellent profitability rating, but there are concerns on its financial health. HBM is evaluated to be cheap and growing strongly. This does not happen too often!
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.
- Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
- HBM's Return On Assets of 7.80% is amongst the best of the industry. HBM outperforms 91.10% of its industry peers.
- HBM has a Return On Equity of 14.99%. This is amongst the best in the industry. HBM outperforms 93.29% of its industry peers.
- HBM's Return On Invested Capital of 7.37% is amongst the best of the industry. HBM outperforms 92.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HBM is significantly below the industry average of 12.04%.
- The 3 year average ROIC (5.61%) for HBM is below the current ROIC(7.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 14.99% | ||
| ROIC | 7.37% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)5.61%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 22.38%, HBM belongs to the top of the industry, outperforming 94.63% of the companies in the same industry.
- HBM's Operating Margin of 24.24% is amongst the best of the industry. HBM outperforms 93.17% of its industry peers.
- In the last couple of years the Operating Margin of HBM has grown nicely.
- With an excellent Gross Margin value of 31.87%, HBM belongs to the best of the industry, outperforming 91.22% of the companies in the same industry.
- In the last couple of years the Gross Margin of HBM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.24% | ||
| PM (TTM) | 22.38% | ||
| GM | 31.87% |
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.
- Compared to 5 years ago, HBM has more shares outstanding
- Compared to 1 year ago, HBM has an improved debt to assets ratio.
2.2 Solvency
- HBM has an Altman-Z score of 2.73. 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 Altman-Z score (2.73) which is comparable to the rest of the industry.
- HBM has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as HBM would need 3.78 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.78, HBM belongs to the top of the industry, outperforming 91.59% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that HBM is not too dependend on debt financing.
- HBM's Debt to Equity ratio of 0.20 is on the low side compared to the rest of the industry. HBM is outperformed by 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.76
WACC9.7%
2.3 Liquidity
- HBM has a Current Ratio of 0.97. 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 Current ratio (0.97) than 60.12% of its industry peers.
- HBM has a Quick Ratio of 0.97. 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's Quick ratio of 0.76 is on the low side compared to the rest of the industry. HBM is outperformed by 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- HBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.61%, which is quite impressive.
- HBM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.11% yearly.
- HBM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.20%.
- The Revenue has been growing by 10.31% on average over the past years. This is quite good.
EPS 1Y (TTM)30.61%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-76.92%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%-28.61%
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 37.29% on average per year.
- HBM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.38% yearly.
EPS Next Y86.96%
EPS Next 2Y79.17%
EPS Next 3Y57.98%
EPS Next 5Y37.29%
Revenue Next Year9.8%
Revenue Next 2Y10.99%
Revenue Next 3Y10.76%
Revenue Next 5Y11.38%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HBM is valuated quite expensively with a Price/Earnings ratio of 37.07.
- HBM's Price/Earnings ratio is rather cheap when compared to the industry. HBM is cheaper than 89.02% of the companies in the same industry.
- HBM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 15.80, HBM is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 91.34% 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 (25.57), we can say HBM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.07 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 95.24% of the companies listed in the same industry.
- 94.63% of the companies in the same industry are more expensive than HBM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.99 | ||
| EV/EBITDA | 11.01 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HBM's earnings are expected to grow with 57.98% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y79.17%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
- HBM has a yearly dividend return of 0.06%, which is pretty low.
- HBM's Dividend Yield is rather good when compared to the industry average which is at 0.42. HBM pays more dividend than 94.27% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
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
- 1.22% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP1.22%
EPS Next 2Y79.17%
EPS Next 3Y57.98%
HUDBAY MINERALS INC / HBM.CA FAQ
What is the fundamental rating for HBM stock?
ChartMill assigns a fundamental rating of 6 / 10 to HBM.CA.
What is the valuation status for HBM stock?
ChartMill assigns a valuation rating of 8 / 10 to HUDBAY MINERALS INC (HBM.CA). This can be considered as Undervalued.
What is the profitability of HBM stock?
HUDBAY MINERALS INC (HBM.CA) has a profitability rating of 8 / 10.
Can you provide the financial health for HBM stock?
The financial health rating of HUDBAY MINERALS INC (HBM.CA) is 3 / 10.
What is the expected EPS growth for HUDBAY MINERALS INC (HBM.CA) stock?
The Earnings per Share (EPS) of HUDBAY MINERALS INC (HBM.CA) is expected to grow by 86.96% in the next year.