HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
TSX:HBM - Toronto Stock Exchange - CA4436281022 - Common Stock - Currency: CAD
Taking everything into account, HBM scores 7 out of 10 in our fundamental rating. HBM was compared to 822 industry peers in the Metals & Mining industry. HBM scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: HBM is growing strongly while it also seems undervalued.
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.
The reported net income has been mixed in the past 5 years: HBM reported negative net income in multiple years.
In the past 5 years HBM always reported a positive cash flow from operatings.
1.2 Ratios
HBM's Return On Assets of 1.40% is amongst the best of the industry. HBM outperforms 87.64% of its industry peers.
Looking at the Return On Equity, with a value of 3.00%, HBM belongs to the top of the industry, outperforming 88.85% of the companies in the same industry.
The Return On Invested Capital of HBM (6.22%) is better than 92.97% 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 11.99%.
The last Return On Invested Capital (6.22%) for HBM is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROIC | 6.22% |
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 3.79%, HBM belongs to the top of the industry, outperforming 91.27% of the companies in the same industry.
HBM has a better Operating Margin (21.17%) than 93.94% of its industry peers.
In the last couple of years the Operating Margin of HBM has grown nicely.
The Gross Margin of HBM (27.40%) is better than 91.52% of its industry peers.
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.
Compared to 1 year ago, HBM has more shares outstanding
HBM has more shares outstanding than it did 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 1.29, 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 1.29, HBM is in line with its industry, outperforming 54.55% 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 92.24% 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.
HBM has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: HBM underperforms 71.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.7
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.95 indicates that HBM should not have too much problems paying its short term obligations.
HBM has a Current ratio of 1.95. This is comparable to the rest of the industry: HBM outperforms 56.36% of its industry peers.
HBM has a Quick Ratio of 1.58. This is a normal value and indicates that HBM is financially healthy and should not expect problems in meeting its short term obligations.
HBM's Quick ratio of 1.58 is in line compared to the rest of the industry. HBM outperforms 54.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 135.00% over the past year.
The Earnings Per Share has been growing by 25.11% on average over the past years. This is a very strong growth
HBM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.60%.
Measured over the past years, HBM shows a quite strong growth in Revenue. The Revenue has been growing by 10.31% on average per year.
EPS 1Y (TTM)135%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)19.6%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%21.74%
3.2 Future
HBM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.43% yearly.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y70.02%
EPS Next 2Y27.92%
EPS Next 3Y34.01%
EPS Next 5Y37.43%
Revenue Next Year2.65%
Revenue Next 2Y2.9%
Revenue Next 3Y2.53%
Revenue Next 5Y7.01%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.96, HBM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 92.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HBM to the average of the S&P500 Index (29.35), we can say HBM is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.75, which indicates a very decent valuation of HBM.
93.94% of the companies in the same industry are more expensive than HBM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, HBM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
HBM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HBM is cheaper than 95.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaply inside the industry as 96.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 3.96 |
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.
The excellent profitability rating of HBM may justify a higher PE ratio.
A more expensive valuation may be justified as HBM's earnings are expected to grow with 34.01% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y27.92%
EPS Next 3Y34.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, HBM is not a good candidate for dividend investing.
HBM's Dividend Yield is rather good when compared to the industry average which is at 7.60. HBM pays more dividend than 94.67% of the companies in the same industry.
With a Dividend Yield of 0.19, HBM pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y27.92%
EPS Next 3Y34.01%
TSX:HBM (3/7/2025, 7:00:00 PM)
10.02
-0.32 (-3.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap3.95B
Analysts83.33
Price Target15.23 (52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.02
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)77.86%
Min EPS beat(2)-25.49%
Max EPS beat(2)181.22%
EPS beat(4)2
Avg EPS beat(4)84.89%
Min EPS beat(4)-100%
Max EPS beat(4)283.85%
EPS beat(8)3
Avg EPS beat(8)8.16%
EPS beat(12)4
Avg EPS beat(12)-4.82%
EPS beat(16)6
Avg EPS beat(16)-7.96%
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)-5.32%
PT rev (3m)-8.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.73%
EPS NY rev (1m)-8.09%
EPS NY rev (3m)-12.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-7.67%
Revenue NY rev (3m)-9.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 8.75 | ||
| P/S | 1.36 | ||
| P/FCF | 8.68 | ||
| P/OCF | 4.13 | ||
| P/B | 1.08 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)0.67
EY6.69%
EPS(NY)1.15
Fwd EY11.43%
FCF(TTM)1.15
FCFY11.52%
OCF(TTM)2.42
OCFY24.2%
SpS7.36
BVpS9.29
TBVpS9.02
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROCE | 8.64% | ||
| ROIC | 6.22% | ||
| ROICexc | 7.05% | ||
| ROICexgc | 7.18% | ||
| 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)5.61%
ROIC(5y)N/A
ROICexc(3y)6.09%
ROICexc(5y)N/A
ROICexgc(3y)6.21%
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 | 1.29 |
F-Score8
WACC8.84%
ROIC/WACC0.7
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)135%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y70.02%
EPS Next 2Y27.92%
EPS Next 3Y34.01%
EPS Next 5Y37.43%
Revenue 1Y (TTM)19.6%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%21.74%
Revenue Next Year2.65%
Revenue Next 2Y2.9%
Revenue Next 3Y2.53%
Revenue Next 5Y7.01%
EBIT growth 1Y36.06%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year160.74%
EBIT Next 3Y40.4%
EBIT Next 5Y36.24%
FCF growth 1Y62.09%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y39.71%
OCF growth 3Y20.18%
OCF growth 5Y16.47%