HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
TSX:HBM - Toronto Stock Exchange - CA4436281022 - Common Stock - Currency: CAD
Taking everything into account, HBM scores 6 out of 10 in our fundamental rating. HBM was compared to 799 industry peers in the Metals & Mining industry. HBM has an excellent profitability rating, but there are some minor concerns on its financial health. HBM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year HBM was profitable.
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.
In the past 5 years HBM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 1.40%, HBM belongs to the best of the industry, outperforming 86.86% of the companies in the same industry.
The Return On Equity of HBM (3.00%) is better than 88.24% of its industry peers.
With an excellent Return On Invested Capital value of 6.22%, HBM belongs to the best of the industry, outperforming 92.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HBM is significantly below the industry average of 24.74%.
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 90.36% of the companies in the same industry.
HBM has a Operating Margin of 21.17%. This is amongst the best in the industry. HBM outperforms 93.24% of its industry peers.
In the last couple of years the Operating Margin of HBM has grown nicely.
HBM has a better Gross Margin (27.40%) than 91.11% 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
HBM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HBM has more shares outstanding
Compared to 5 years ago, HBM has more shares outstanding
HBM has a better debt/assets ratio than last year.
2.2 Solvency
HBM has an Altman-Z score of 1.29. This is a bad value and indicates that HBM is not financially healthy and even 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 52.07% of the companies in the same industry.
HBM has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as HBM would need 3.97 years to pay back of all of its debts.
HBM's Debt to FCF ratio of 3.97 is amongst the best of the industry. HBM outperforms 92.12% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that HBM is not too dependend on debt financing.
The Debt to Equity ratio of HBM (0.47) is worse than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.73
WACC8.56%
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 (1.95) which is comparable to the rest of the industry.
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.
The Quick ratio of HBM (1.58) is comparable to the rest of the industry.
| 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.
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 19.60% 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)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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.53% yearly.
Based on estimates for the next years, HBM will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y16.79%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
EPS Next 5Y16.53%
Revenue Next Year2.65%
Revenue Next 2Y2.9%
Revenue Next 3Y2.53%
Revenue Next 5Y5.15%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.75, which indicates a correct valuation of HBM.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 92.12% of the companies listed in the same industry.
HBM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.63.
With a Price/Forward Earnings ratio of 12.58, 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 91.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, HBM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 12.58 |
4.2 Price Multiples
96.87% of the companies in the same industry are more expensive than HBM, based on the Enterprise Value to EBITDA ratio.
97.12% 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 | 8.6 | ||
| EV/EBITDA | 3.93 |
4.3 Compensation for Growth
HBM's 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.
HBM's earnings are expected to grow with 19.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
HBM has a yearly dividend return of 0.21%, which is pretty low.
The stock price of HBM dropped by -22.22% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HBM's Dividend Yield is rather good when compared to the industry average which is at 3.00. HBM pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 7.17% of its income as dividend. This is a sustainable payout ratio.
DP7.17%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
TSX:HBM (4/21/2025, 7:00:00 PM)
9.59
-0.15 (-1.54%)
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 Cap3.79B
Analysts83.33
Price Target15.08 (57.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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)88.86%
Min EPS beat(2)-3.49%
Max EPS beat(2)181.22%
EPS beat(4)2
Avg EPS beat(4)90.39%
Min EPS beat(4)-100%
Max EPS beat(4)283.85%
EPS beat(8)3
Avg EPS beat(8)10.91%
EPS beat(12)4
Avg EPS beat(12)-2.99%
EPS beat(16)6
Avg EPS beat(16)-6.59%
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)-0.96%
PT rev (3m)-9.32%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-33.13%
EPS NY rev (1m)-31.3%
EPS NY rev (3m)-40.12%
Revenue NQ rev (1m)7.48%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 12.58 | ||
| P/S | 1.35 | ||
| P/FCF | 8.6 | ||
| P/OCF | 4.1 | ||
| P/B | 1.07 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 3.93 |
EPS(TTM)0.65
EY6.78%
EPS(NY)0.76
Fwd EY7.95%
FCF(TTM)1.12
FCFY11.63%
OCF(TTM)2.34
OCFY24.42%
SpS7.1
BVpS8.97
TBVpS8.71
PEG (NY)0.88
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
WACC8.56%
ROIC/WACC0.73
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 Y16.79%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
EPS Next 5Y16.53%
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 5Y5.15%
EBIT growth 1Y36.06%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year99.68%
EBIT Next 3Y34.42%
EBIT Next 5Y24.95%
FCF growth 1Y62.09%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y39.71%
OCF growth 3Y20.18%
OCF growth 5Y16.47%