HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
NYSE:HBM - New York Stock Exchange, Inc. - CA4436281022 - Common Stock - Currency: USD
HBM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. HBM has only an average score on both its financial health and profitability. HBM is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
HBM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 1.57%, HBM is doing good in the industry, outperforming 62.24% of the companies in the same industry.
HBM has a Return On Equity of 3.40%. This is in the better half of the industry: HBM outperforms 65.73% of its industry peers.
With a decent Return On Invested Capital value of 4.91%, HBM is doing good in the industry, outperforming 62.24% of the companies in the same industry.
HBM had an Average Return On Invested Capital over the past 3 years of 4.02%. This is below the industry average of 8.84%.
The 3 year average ROIC (4.02%) for HBM is below the current ROIC(4.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 3.4% | ||
| ROIC | 4.91% |
ROA(3y)-0.81%
ROA(5y)-2.64%
ROE(3y)-2.97%
ROE(5y)-7.2%
ROIC(3y)4.02%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of HBM (4.23%) is better than 69.93% of its industry peers.
In the last couple of years the Profit Margin of HBM has declined.
HBM's Operating Margin of 20.22% is fine compared to the rest of the industry. HBM outperforms 77.62% of its industry peers.
In the last couple of years the Operating Margin of HBM has declined.
The Gross Margin of HBM (27.77%) is better than 67.13% of its industry peers.
HBM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.22% | ||
| PM (TTM) | 4.23% | ||
| GM | 27.77% |
OM growth 3YN/A
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5Y-7.5%
GM growth 3Y86.69%
GM growth 5Y-1.76%
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.
HBM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HBM has an Altman-Z score of 1.30. This is a bad value and indicates that HBM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HBM (1.30) is worse than 72.03% of its industry peers.
The Debt to FCF ratio of HBM is 3.83, which is a good value as it means it would take HBM, 3.83 years of fcf income to pay off all of its debts.
HBM's Debt to FCF ratio of 3.83 is fine compared to the rest of the industry. HBM outperforms 72.03% of its industry peers.
HBM has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, HBM is doing worse than 75.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.57
WACC8.63%
2.3 Liquidity
HBM has a Current Ratio of 1.86. This is a normal value and indicates that HBM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HBM (1.86) is comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that HBM should not have too much problems paying its short term obligations.
HBM has a Quick ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
HBM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 135.00%, 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
EPS 1Y (TTM)135%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21.74%
3.2 Future
HBM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.43% yearly.
The Revenue is expected to grow by 7.01% on average over the next years.
EPS Next Y70.02%
EPS Next 2Y27.92%
EPS Next 3Y34.01%
EPS Next 5Y37.43%
Revenue Next Year10.44%
Revenue Next 2Y2.73%
Revenue Next 3Y5.11%
Revenue Next 5Y7.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.11 indicates a correct valuation of HBM.
79.72% of the companies in the same industry are more expensive than HBM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.63. HBM is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 8.89, the valuation of HBM can be described as reasonable.
HBM's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBM is cheaper than 84.62% of the companies in the same industry.
HBM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 8.89 |
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 93.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.68 | ||
| EV/EBITDA | 4.41 |
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's earnings are expected to grow with 34.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y27.92%
EPS Next 3Y34.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, HBM is not a good candidate for dividend investing.
In the last 3 months the price of HBM has falen by -22.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.16, HBM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, HBM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of HBM decreases each year by -0.93%.
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)-0.93%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
HBM pays out 6.36% of its income as dividend. This is a sustainable payout ratio.
DP6.36%
EPS Next 2Y27.92%
EPS Next 3Y34.01%
7.1
-0.51 (-6.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners75.17%
Inst Owner Change-0.6%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap2.80B
Analysts83.33
Price Target11.16 (57.18%)
Short Float %1.42%
Short Ratio1.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.01
Dividend Growth(5Y)-0.93%
DP6.36%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.61%
Min EPS beat(2)-100%
Max EPS beat(2)181.22%
EPS beat(4)3
Avg EPS beat(4)108.22%
Min EPS beat(4)-100%
Max EPS beat(4)283.85%
EPS beat(8)3
Avg EPS beat(8)4.67%
EPS beat(12)5
Avg EPS beat(12)-2.54%
EPS beat(16)7
Avg EPS beat(16)-4.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-7.03%
Max Revenue beat(2)5.84%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-12.62%
Max Revenue beat(4)14.02%
Revenue beat(8)2
Avg Revenue beat(8)-6.35%
Revenue beat(12)3
Avg Revenue beat(12)-3.8%
Revenue beat(16)4
Avg Revenue beat(16)-3.55%
PT rev (1m)-3.58%
PT rev (3m)-6.31%
EPS NQ rev (1m)-12.86%
EPS NQ rev (3m)32.32%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)13.22%
Revenue NQ rev (1m)-4.32%
Revenue NQ rev (3m)2.46%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 8.89 | ||
| P/S | 1.37 | ||
| P/FCF | 8.68 | ||
| P/OCF | 4.28 | ||
| P/B | 1.1 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 4.41 |
EPS(TTM)0.47
EY6.62%
EPS(NY)0.8
Fwd EY11.25%
FCF(TTM)0.82
FCFY11.52%
OCF(TTM)1.66
OCFY23.36%
SpS5.17
BVpS6.44
TBVpS6.13
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 3.4% | ||
| ROCE | 8.24% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.44% | ||
| ROICexgc | 5.59% | ||
| OM | 20.22% | ||
| PM (TTM) | 4.23% | ||
| GM | 27.77% | ||
| FCFM | 15.8% |
ROA(3y)-0.81%
ROA(5y)-2.64%
ROE(3y)-2.97%
ROE(5y)-7.2%
ROIC(3y)4.02%
ROIC(5y)N/A
ROICexc(3y)4.27%
ROICexc(5y)N/A
ROICexgc(3y)4.34%
ROICexgc(5y)N/A
ROCE(3y)6.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-1.69%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.23%
OM growth 3YN/A
OM growth 5Y-1.73%
PM growth 3YN/A
PM growth 5Y-7.5%
GM growth 3Y86.69%
GM growth 5Y-1.76%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 77.41% | ||
| Cap/Sales | 16.25% | ||
| Interest Coverage | 5.31 | ||
| Cash Conversion | 77.79% | ||
| Profit Quality | 373.5% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.3 |
F-Score8
WACC8.63%
ROIC/WACC0.57
Cap/Depr(3y)89.18%
Cap/Depr(5y)88.33%
Cap/Sales(3y)20.97%
Cap/Sales(5y)23.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)135%
EPS 3Y25.11%
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y70.02%
EPS Next 2Y27.92%
EPS Next 3Y34.01%
EPS Next 5Y37.43%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%21.74%
Revenue Next Year10.44%
Revenue Next 2Y2.73%
Revenue Next 3Y5.11%
Revenue Next 5Y7.01%
EBIT growth 1Y115.91%
EBIT growth 3YN/A
EBIT growth 5Y1.02%
EBIT Next Year224.09%
EBIT Next 3Y56.96%
EBIT Next 5Y40.87%
FCF growth 1Y86.98%
FCF growth 3YN/A
FCF growth 5Y-7.48%
OCF growth 1Y31.4%
OCF growth 3Y25.8%
OCF growth 5Y-0.11%