HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
NYSE:HBM - New York Stock Exchange, Inc. - CA4436281022 - Common Stock - Currency: USD
Taking everything into account, HBM scores 5 out of 10 in our fundamental rating. HBM was compared to 154 industry peers in the Metals & Mining industry. HBM has only an average score on both its financial health and profitability. HBM has a correct valuation and a medium growth rate.
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.
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
With a decent Return On Assets value of 2.81%, HBM is doing good in the industry, outperforming 68.83% of the companies in the same industry.
With a decent Return On Equity value of 5.83%, HBM is doing good in the industry, outperforming 70.13% of the companies in the same industry.
HBM has a better Return On Invested Capital (7.64%) than 73.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBM is significantly below the industry average of 11.67%.
The last Return On Invested Capital (7.64%) for HBM is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROIC | 7.64% |
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's Profit Margin of 7.40% is fine compared to the rest of the industry. HBM outperforms 76.62% of its industry peers.
With a decent Operating Margin value of 23.36%, HBM is doing good in the industry, outperforming 77.92% of the companies in the same industry.
In the last couple of years the Operating Margin of HBM has grown nicely.
With a decent Gross Margin value of 30.28%, HBM is doing good in the industry, outperforming 70.13% of the companies in the same industry.
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
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.
HBM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that HBM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, HBM is doing worse than 65.58% of the companies in the same industry.
HBM has a debt to FCF ratio of 4.64. This is a neutral value as HBM would need 4.64 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.64, HBM is in the better half of the industry, outperforming 70.13% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that HBM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, HBM is doing worse than 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.88
WACC8.64%
2.3 Liquidity
A Current Ratio of 2.32 indicates that HBM has no problem at all paying its short term obligations.
HBM has a Current ratio (2.32) which is in line with its industry peers.
A Quick Ratio of 1.92 indicates that HBM should not have too much problems paying its short term obligations.
HBM has a Quick ratio (1.92) which 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.
Measured over the past years, HBM shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.11% on average per year.
Looking at the last year, HBM shows a quite strong growth in Revenue. The Revenue has grown by 8.92% 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)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.
HBM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
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
HBM is valuated rather expensively with a Price/Earnings ratio of 19.04.
Based on the Price/Earnings ratio, HBM is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.52, HBM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.43, HBM is valued correctly.
HBM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HBM is cheaper than 61.69% of the companies in the same industry.
HBM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 15.43 |
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 89.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HBM is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | 5.24 |
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 a very decent 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)1.13
PEG (5Y)N/A
EPS Next 2Y20.16%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
HBM has a yearly dividend return of 0.14%, which is pretty low.
Compared to an average industry Dividend Yield of 2.90, HBM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
HBM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.13%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
HBM pays out 3.69% of its income as dividend. This is a sustainable payout ratio.
DP3.69%
EPS Next 2Y20.16%
EPS Next 3Y19.9%
10.47
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners66.56%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap4.14B
Analysts83
Price Target11.26 (7.55%)
Short Float %1.33%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.14% |
Yearly Dividend0.01
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)1.02%
PT rev (3m)7.33%
EPS NQ rev (1m)2.63%
EPS NQ rev (3m)22.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.53%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.04 | ||
| Fwd PE | 15.43 | ||
| P/S | 1.98 | ||
| P/FCF | 15.22 | ||
| P/OCF | 6.35 | ||
| P/B | 1.56 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)0.55
EY5.25%
EPS(NY)0.68
Fwd EY6.48%
FCF(TTM)0.69
FCFY6.57%
OCF(TTM)1.65
OCFY15.75%
SpS5.29
BVpS6.72
TBVpS6.53
PEG (NY)1.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 5.83% | ||
| ROCE | 9.67% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.63% | ||
| ROICexgc | 8.78% | ||
| 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)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 Turnover0.38
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 | 1.69 |
F-Score8
WACC8.64%
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)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%