HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBM - CA4436281022 - Common Stock
19.41 USD
-0.81 (-4.01%)
19.98 USD
+0.57 (+2.94%)
HBM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. HBM scores excellent on profitability, but there are 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
In the past year HBM was profitable.
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
Looking at the Return On Assets, with a value of 7.80%, HBM belongs to the top of the industry, outperforming 81.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.99%, HBM belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
HBM has a better Return On Invested Capital (8.08%) than 71.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBM is significantly below the industry average of 13.25%.
The last Return On Invested Capital (8.08%) for HBM is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 14.99% | ||
| ROIC | 8.08% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)6.15%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 22.38%, HBM belongs to the best of the industry, outperforming 85.90% of the companies in the same industry.
HBM's Operating Margin of 24.24% is fine compared to the rest of the industry. HBM outperforms 72.44% of its industry peers.
In the last couple of years the Operating Margin of HBM has grown nicely.
HBM has a Gross Margin of 31.87%. This is in the better half of the industry: HBM outperforms 67.95% of its industry peers.
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.
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
An Altman-Z score of 2.36 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 2.36, HBM is doing worse than 62.82% 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.
HBM's Debt to FCF ratio of 3.78 is fine compared to the rest of the industry. HBM outperforms 72.44% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that HBM is not too dependend on debt financing.
HBM has a Debt to Equity ratio of 0.20. This is comparable to the rest of the industry: HBM outperforms 46.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.87
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HBM may have some problems paying its short term obligations.
The Current ratio of HBM (0.97) is worse than 85.90% of its industry peers.
A Quick Ratio of 0.76 indicates that HBM may have some problems paying its short term obligations.
The Quick ratio of HBM (0.76) is worse than 82.05% 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.
Looking at the last year, HBM shows a small growth in Revenue. The Revenue has grown by 1.20% in the last year.
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)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
HBM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.29% yearly.
Based on estimates for the next years, HBM will show a quite strong growth in Revenue. The Revenue will grow by 11.38% on average per year.
EPS Next Y68.59%
EPS Next 2Y73.36%
EPS Next 3Y51.48%
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.
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
With a Price/Earnings ratio of 30.33, HBM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HBM is valued a bit cheaper than 69.87% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. HBM is around the same levels.
Based on the Price/Forward Earnings ratio of 13.74, the valuation of HBM can be described as correct.
Based on the Price/Forward Earnings ratio, HBM is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HBM to the average of the S&P500 Index (23.40), we can say HBM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
HBM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HBM is cheaper than 81.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaper than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.41 | ||
| EV/EBITDA | 9.08 |
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 a very decent profitability rating, which may justify a higher PE ratio.
HBM's earnings are expected to grow with 51.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y73.36%
EPS Next 3Y51.48%
5. Dividend
5.1 Amount
HBM has a yearly dividend return of 0.07%, which is pretty low.
Compared to an average industry Dividend Yield of 0.98, HBM has a dividend in line with its industry peers.
With a Dividend Yield of 0.07, HBM pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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
1.22% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP1.22%
EPS Next 2Y73.36%
EPS Next 3Y51.48%
19.41
-0.81 (-4.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners77.38%
Inst Owner Change-0.03%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap7.69B
Revenue(TTM)2.06B
Net Income(TTM)461.66M
Analysts84
Price Target19.14 (-1.39%)
Short Float %1.15%
Short Ratio0.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
Yearly Dividend0.01
Dividend Growth(5Y)-0.13%
DP1.22%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.31%
Min EPS beat(2)-78.84%
Max EPS beat(2)66.23%
EPS beat(4)2
Avg EPS beat(4)23.51%
Min EPS beat(4)-78.84%
Max EPS beat(4)110.14%
EPS beat(8)5
Avg EPS beat(8)65.86%
EPS beat(12)5
Avg EPS beat(12)10.77%
EPS beat(16)7
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-14.51%
Min Revenue beat(2)-28.92%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-5.34%
Min Revenue beat(4)-28.92%
Max Revenue beat(4)9.21%
Revenue beat(8)3
Avg Revenue beat(8)-2.65%
Revenue beat(12)3
Avg Revenue beat(12)-6.02%
Revenue beat(16)4
Avg Revenue beat(16)-4.19%
PT rev (1m)11.09%
PT rev (3m)43.04%
EPS NQ rev (1m)-14.23%
EPS NQ rev (3m)43.22%
EPS NY rev (1m)-8.36%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)18.62%
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.33 | ||
| Fwd PE | 13.74 | ||
| P/S | 3.73 | ||
| P/FCF | 24.41 | ||
| P/OCF | 10.39 | ||
| P/B | 2.5 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)0.64
EY3.3%
EPS(NY)1.41
Fwd EY7.28%
FCF(TTM)0.8
FCFY4.1%
OCF(TTM)1.87
OCFY9.62%
SpS5.21
BVpS7.78
TBVpS7.58
PEG (NY)0.44
PEG (5Y)N/A
Graham Number10.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 14.99% | ||
| ROCE | 10.23% | ||
| ROIC | 8.08% | ||
| ROICexc | 9.24% | ||
| ROICexgc | 9.41% | ||
| OM | 24.24% | ||
| PM (TTM) | 22.38% | ||
| GM | 31.87% | ||
| FCFM | 15.27% |
ROA(3y)1.42%
ROA(5y)-0.82%
ROE(3y)3.55%
ROE(5y)-2.88%
ROIC(3y)6.15%
ROIC(5y)N/A
ROICexc(3y)6.68%
ROICexc(5y)N/A
ROICexgc(3y)6.81%
ROICexgc(5y)N/A
ROCE(3y)7.79%
ROCE(5y)N/A
ROICexgc growth 3Y18.86%
ROICexgc 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-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 103.45% | ||
| Cap/Sales | 20.59% | ||
| Interest Coverage | 8.25 | ||
| Cash Conversion | 81.23% | ||
| Profit Quality | 68.22% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 2.36 |
F-Score6
WACC9.24%
ROIC/WACC0.87
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)30.61%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-76.92%
EPS Next Y68.59%
EPS Next 2Y73.36%
EPS Next 3Y51.48%
EPS Next 5Y37.29%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%-28.61%
Revenue Next Year9.8%
Revenue Next 2Y10.99%
Revenue Next 3Y10.76%
Revenue Next 5Y11.38%
EBIT growth 1Y21.35%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year142.89%
EBIT Next 3Y51.93%
EBIT Next 5Y34.94%
FCF growth 1Y595.19%
FCF growth 3Y267.69%
FCF growth 5Y43.75%
OCF growth 1Y121.38%
OCF growth 3Y20.18%
OCF growth 5Y16.47%
HUDBAY MINERALS INC / HBM FAQ
What is the fundamental rating for HBM stock?
ChartMill assigns a fundamental rating of 6 / 10 to HBM.
What is the valuation status of HUDBAY MINERALS INC (HBM) stock?
ChartMill assigns a valuation rating of 7 / 10 to HUDBAY MINERALS INC (HBM). This can be considered as Undervalued.
What is the profitability of HBM stock?
HUDBAY MINERALS INC (HBM) has a profitability rating of 7 / 10.
What is the financial health of HUDBAY MINERALS INC (HBM) stock?
The financial health rating of HUDBAY MINERALS INC (HBM) is 3 / 10.
Can you provide the expected EPS growth for HBM stock?
The Earnings per Share (EPS) of HUDBAY MINERALS INC (HBM) is expected to grow by 68.59% in the next year.