HUDBAY MINERALS INC (HBM.CA) Stock Fundamental Analysis
TSX:HBM - Toronto Stock Exchange - CA4436281022 - Common Stock - Currency: CAD
HBM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 797 industry peers in the Metals & Mining industry. While HBM has a great profitability rating, there are some minor concerns on its financial health. HBM is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make HBM a good candidate for value investing.
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.
Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
HBM's Return On Assets of 2.81% is amongst the best of the industry. HBM outperforms 87.95% of its industry peers.
HBM has a Return On Equity of 5.83%. This is amongst the best in the industry. HBM outperforms 88.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.96%, HBM belongs to the top of the industry, outperforming 92.60% 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 12.25%.
The last Return On Invested Capital (6.96%) for HBM is above the 3 year average (5.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROIC | 6.96% |
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
The Profit Margin of HBM (7.40%) is better than 91.34% of its industry peers.
With an excellent Operating Margin value of 23.36%, HBM belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
In the last couple of years the Operating Margin of HBM has grown nicely.
The Gross Margin of HBM (30.28%) is better than 91.47% of its industry peers.
HBM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.36% | ||
| PM (TTM) | 7.4% | ||
| GM | 30.28% |
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
The number of shares outstanding for HBM has been increased compared to 5 years ago.
HBM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that HBM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HBM (1.71) is comparable to the rest of the industry.
The Debt to FCF ratio of HBM is 4.64, which is a neutral value as it means it would take HBM, 4.64 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.64, HBM belongs to the best of the industry, outperforming 90.97% of the companies in the same industry.
HBM has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HBM (0.46) is worse than 72.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.82
WACC8.48%
2.3 Liquidity
HBM has a Current Ratio of 2.32. This indicates that HBM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HBM (2.32) is comparable to the rest of the industry.
HBM has a Quick Ratio of 1.92. 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 (1.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
HBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.78%, which is quite impressive.
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 grown by 8.92% in the past year. This is quite good.
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)52.78%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)8.92%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%13.32%
3.2 Future
The Earnings Per Share is expected to grow by 16.53% on average over the next years. This is quite good.
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 Year7.01%
Revenue Next 2Y3.92%
Revenue Next 3Y4.05%
Revenue Next 5Y5.15%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 19.12 indicates a rather expensive valuation of HBM.
Based on the Price/Earnings ratio, HBM is valued cheaply inside the industry as 90.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HBM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.44, HBM is valued correctly.
Based on the Price/Forward Earnings ratio, HBM is valued cheaper than 89.46% of the companies in the same industry.
HBM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaply inside the industry as 95.98% of the companies are valued more expensively.
94.60% 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 | 15.22 | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
HBM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 19.90% in the coming years.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.14%, 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 13.23. HBM pays more dividend than 94.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
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 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
3.69% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP3.69%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
TSX:HBM (7/11/2025, 7:00:00 PM)
14.34
-0.39 (-2.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners66.56%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap5.66B
Analysts83
Price Target15.44 (7.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.02
Dividend Growth(5Y)-0.13%
DP3.69%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)53.32%
Min EPS beat(2)-3.49%
Max EPS beat(2)110.14%
EPS beat(4)2
Avg EPS beat(4)46.97%
Min EPS beat(4)-100%
Max EPS beat(4)181.22%
EPS beat(8)4
Avg EPS beat(8)37.18%
EPS beat(12)5
Avg EPS beat(12)12.96%
EPS beat(16)7
Avg EPS beat(16)17.19%
Revenue beat(2)1
Avg Revenue beat(2)3.82%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)9.21%
Revenue beat(4)2
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-7.03%
Max Revenue beat(4)9.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.67%
Revenue beat(12)4
Avg Revenue beat(12)-2.36%
Revenue beat(16)4
Avg Revenue beat(16)-2.81%
PT rev (1m)3.53%
PT rev (3m)2.4%
EPS NQ rev (1m)2.63%
EPS NQ rev (3m)26.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 15.44 | ||
| P/S | 1.98 | ||
| P/FCF | 15.22 | ||
| P/OCF | 6.35 | ||
| P/B | 1.56 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)0.75
EY5.23%
EPS(NY)0.93
Fwd EY6.48%
FCF(TTM)0.94
FCFY6.57%
OCF(TTM)2.26
OCFY15.74%
SpS7.25
BVpS9.19
TBVpS8.93
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROCE | 9.67% | ||
| ROIC | 6.96% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 8% | ||
| OM | 23.36% | ||
| PM (TTM) | 7.4% | ||
| GM | 30.28% | ||
| FCFM | 13% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 88.94% | ||
| Cap/Sales | 18.15% | ||
| Interest Coverage | 7.29 | ||
| Cash Conversion | 71.17% | ||
| Profit Quality | 175.64% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 1.71 |
F-Score8
WACC8.48%
ROIC/WACC0.82
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)52.78%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y16.79%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
EPS Next 5Y16.53%
Revenue 1Y (TTM)8.92%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%13.32%
Revenue Next Year7.01%
Revenue Next 2Y3.92%
Revenue Next 3Y4.05%
Revenue Next 5Y5.15%
EBIT growth 1Y27.06%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year126.4%
EBIT Next 3Y37.44%
EBIT Next 5Y24.95%
FCF growth 1Y52.9%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y31.37%
OCF growth 3Y20.18%
OCF growth 5Y16.47%