HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HBM - CA4436281022 - Common Stock
35.62 CAD
+0.73 (+2.09%)
Overall HBM gets a fundamental rating of 6 out of 10. We evaluated HBM against 820 industry peers in the Metals & Mining industry. While HBM belongs to the best of the industry regarding profitability, there are concerns on its financial health. HBM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- HBM had positive earnings in the past year.
- In the past year HBM had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: HBM reported negative net income in multiple years.
- Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
- HBM has a Return On Assets of 7.80%. This is amongst the best in the industry. HBM outperforms 91.22% of its industry peers.
- HBM's Return On Equity of 14.99% is amongst the best of the industry. HBM outperforms 93.41% of its industry peers.
- The Return On Invested Capital of HBM (7.37%) is better than 92.32% 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 12.04%.
- The last Return On Invested Capital (7.37%) for HBM is above the 3 year average (5.61%), which is a sign of increasing profitability.
| 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
- HBM has a Profit Margin of 22.38%. This is amongst the best in the industry. HBM outperforms 94.63% of its industry peers.
- HBM has a better Operating Margin (24.24%) than 93.17% of its industry peers.
- In the last couple of years the Operating Margin of HBM has grown nicely.
- HBM has a better Gross Margin (31.87%) than 91.34% of its industry peers.
- HBM's Gross Margin has improved in the last couple of years.
| 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.
- HBM has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HBM has more shares outstanding
- HBM has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.91 indicates that HBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.91, HBM is in line with its industry, outperforming 47.32% of the companies in the same 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.
- The Debt to FCF ratio of HBM (3.78) is better than 91.59% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that HBM is not too dependend on debt financing.
- HBM has a worse Debt to Equity ratio (0.20) than 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.76
WACC9.64%
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.
- Looking at the Current ratio, with a value of 0.97, HBM is doing worse than 60.12% of the companies in the same industry.
- A Quick Ratio of 0.76 indicates that HBM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.76, HBM is not doing good in the industry: 62.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 30.61% 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
- The Revenue has been growing slightly by 1.20% in the past year.
- 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
- The Earnings Per Share is expected to grow by 37.29% on average over the next years. This is a very strong growth
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 40.48, which means the current valuation is very expensive for HBM.
- Based on the Price/Earnings ratio, HBM is valued cheaply inside the industry as 89.15% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. HBM is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 17.26, which indicates a rather expensive current valuation of HBM.
- HBM's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBM is cheaper than 91.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, HBM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.48 | ||
| Fwd PE | 17.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
- 94.76% 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 | 32.76 | ||
| EV/EBITDA | 11.97 |
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.
- HBM's earnings are expected to grow with 57.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y79.17%
EPS Next 3Y57.98%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.06%, HBM is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.56, HBM pays a better dividend. On top of this HBM pays more dividend than 94.39% of the companies listed in the same industry.
- With a Dividend Yield of 0.06, HBM pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
- HBM pays out 1.22% of its income as dividend. This is a 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 7 / 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.