HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
NYSE:HBM - New York Stock Exchange, Inc. - CA4436281022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HBM. HBM was compared to 152 industry peers in the Metals & Mining industry. HBM has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on HBM.
1. Profitability
1.1 Basic Checks
In the past year HBM was profitable.
HBM had a positive operating cash flow in the past year.
In multiple years HBM reported negative net income over the last 5 years.
Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
HBM has a Return On Assets of 1.40%. This is in the better half of the industry: HBM outperforms 61.84% of its industry peers.
Looking at the Return On Equity, with a value of 3.00%, HBM is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.83%, HBM is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HBM is below the industry average of 8.57%.
The last Return On Invested Capital (6.83%) for HBM is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROIC | 6.83% |
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 a decent Profit Margin value of 3.79%, HBM is doing good in the industry, outperforming 69.74% of the companies in the same industry.
With a decent Operating Margin value of 21.17%, HBM is doing good in the industry, outperforming 76.32% of the companies in the same industry.
HBM's Operating Margin has improved in the last couple of years.
HBM's Gross Margin of 27.40% is fine compared to the rest of the industry. HBM outperforms 66.45% of its industry peers.
In the last couple of years the Gross Margin of HBM has grown nicely.
| 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.
The number of shares outstanding for HBM has been increased compared to 1 year ago.
The number of shares outstanding for HBM has been increased compared to 5 years ago.
Compared to 1 year ago, HBM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that HBM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HBM (1.34) is worse than 66.45% of its industry peers.
The Debt to FCF ratio of HBM is 3.97, which is a good value as it means it would take HBM, 3.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HBM (3.97) is better than 71.05% 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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.77
WACC8.84%
2.3 Liquidity
HBM has a Current Ratio of 1.95. This is a normal value and indicates that HBM is financially healthy and should not expect problems in meeting its short term obligations.
HBM has a Current ratio (1.95) which is in line with its industry peers.
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.
HBM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.60%.
HBM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.31% yearly.
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
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 Year2.65%
Revenue Next 2Y2.9%
Revenue Next 3Y2.53%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HBM is valuated correctly with a Price/Earnings ratio of 15.85.
Based on the Price/Earnings ratio, HBM is valued cheaply inside the industry as 82.24% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.79. HBM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.57 indicates a correct valuation of HBM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 74.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, HBM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
92.76% of the companies in the same industry are more expensive than HBM, based on the Enterprise Value to EBITDA ratio.
92.76% 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 | 9.27 | ||
| EV/EBITDA | 4.23 |
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.
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 19.90% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, HBM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, HBM has a dividend in line with its industry peers.
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 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
7.17% of the earnings are spent on dividend by HBM. This is a low number and sustainable payout ratio.
DP7.17%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
7.45
-0.11 (-1.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners74.95%
Inst Owner Change0.02%
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap2.94B
Analysts83.33
Price Target10.49 (40.81%)
Short Float %2.57%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0.01
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)-0.47%
PT rev (3m)-9.35%
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 | 15.85 | ||
| Fwd PE | 13.57 | ||
| P/S | 1.46 | ||
| P/FCF | 9.27 | ||
| P/OCF | 4.42 | ||
| P/B | 1.15 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 4.23 |
EPS(TTM)0.47
EY6.31%
EPS(NY)0.55
Fwd EY7.37%
FCF(TTM)0.8
FCFY10.78%
OCF(TTM)1.69
OCFY22.64%
SpS5.12
BVpS6.46
TBVpS6.27
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 3% | ||
| ROCE | 8.64% | ||
| ROIC | 6.83% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 7.87% | ||
| 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)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
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 | 1.34 |
F-Score8
WACC8.84%
ROIC/WACC0.77
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%