HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBM - CA4436281022 - Common Stock
19.72 USD
+0.45 (+2.34%)
19.91 USD
+0.19 (+0.96%)
Taking everything into account, HBM scores 6 out of 10 in our fundamental rating. HBM was compared to 156 industry peers in the Metals & Mining industry. HBM has an excellent profitability rating, 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
HBM had positive earnings in the past year.
HBM had a positive operating cash flow in the past year.
In multiple years HBM reported negative net income over the last 5 years.
In the past 5 years HBM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HBM (7.80%) is better than 81.41% of its industry peers.
The Return On Equity of HBM (14.99%) is better than 86.54% of its industry peers.
With a decent Return On Invested Capital value of 8.08%, HBM is doing good in the industry, outperforming 71.15% of the companies in the same industry.
HBM had an Average Return On Invested Capital over the past 3 years of 6.15%. This is significantly below the industry average of 13.25%.
The 3 year average ROIC (6.15%) for HBM is below the current ROIC(8.08%), indicating increased profibility in the last year.
| 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
HBM has a Profit Margin of 22.38%. This is amongst the best in the industry. HBM outperforms 85.90% of its industry peers.
With a decent Operating Margin value of 24.24%, HBM is doing good in the industry, outperforming 72.44% 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 (31.87%) is better than 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
Compared to 5 years ago, HBM has more shares outstanding
Compared to 1 year ago, HBM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that HBM is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBM has a worse Altman-Z score (2.34) than 62.18% of its industry peers.
The Debt to FCF ratio of HBM is 3.78, which is a good value as it means it would take HBM, 3.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.78, HBM is in the better half of the industry, outperforming 72.44% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that HBM is not too dependend on debt financing.
HBM has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.88
WACC9.2%
2.3 Liquidity
A Current Ratio of 0.97 indicates that HBM may have some problems paying its short term obligations.
HBM has a Current ratio of 0.97. This is amonst the worse of the industry: HBM underperforms 85.90% of its industry peers.
HBM has a Quick 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.
With a Quick ratio value of 0.76, HBM is not doing good in the industry: 82.05% 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
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.
HBM shows a small growth in Revenue. In the last year, the Revenue has grown by 1.20%.
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
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 Y81.68%
EPS Next 2Y71.34%
EPS Next 3Y50.11%
EPS Next 5Y37.29%
Revenue Next Year9.71%
Revenue Next 2Y11.08%
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
A Price/Earnings ratio of 30.81 indicates a quite expensive valuation of HBM.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 70.51% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HBM to the average of the S&P500 Index (26.61), we can say HBM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 14.29, the valuation of HBM can be described as correct.
69.23% of the companies in the same industry are more expensive than HBM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. HBM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 14.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBM indicates a rather cheap valuation: HBM is cheaper than 81.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.8 | ||
| EV/EBITDA | 9.02 |
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 decent 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 50.11% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y71.34%
EPS Next 3Y50.11%
5. Dividend
5.1 Amount
HBM has a yearly dividend return of 0.08%, which is pretty low.
HBM's Dividend Yield is comparable with the industry average which is at 1.02.
With a Dividend Yield of 0.08, HBM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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
1.22% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP1.22%
EPS Next 2Y71.34%
EPS Next 3Y50.11%
19.72
+0.45 (+2.34%)
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 Cap7.81B
Revenue(TTM)2.06B
Net Income(TTM)461.66M
Analysts84
Price Target18.61 (-5.63%)
Short Float %1.15%
Short Ratio0.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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)10.95%
EPS beat(16)7
Avg EPS beat(16)3.97%
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)8%
PT rev (3m)39.06%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)43.22%
EPS NY rev (1m)-1.25%
EPS NY rev (3m)7%
Revenue NQ rev (1m)13.99%
Revenue NQ rev (3m)18.62%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 14.29 | ||
| P/S | 3.79 | ||
| P/FCF | 24.8 | ||
| P/OCF | 10.56 | ||
| P/B | 2.54 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.64
EY3.25%
EPS(NY)1.38
Fwd EY7%
FCF(TTM)0.8
FCFY4.03%
OCF(TTM)1.87
OCFY9.47%
SpS5.21
BVpS7.78
TBVpS7.58
PEG (NY)0.38
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 | 2.34 |
F-Score6
WACC9.2%
ROIC/WACC0.88
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 Y81.68%
EPS Next 2Y71.34%
EPS Next 3Y50.11%
EPS Next 5Y37.29%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%-28.61%
Revenue Next Year9.71%
Revenue Next 2Y11.08%
Revenue Next 3Y10.76%
Revenue Next 5Y11.38%
EBIT growth 1Y21.35%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year151.03%
EBIT Next 3Y50.18%
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 81.68% in the next year.