HUDBAY MINERALS INC (HBM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBM - CA4436281022 - Common Stock
17.34 USD
-0.05 (-0.29%)
17.2651 USD
-0.07 (-0.43%)
HBM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. While HBM belongs to the best of the industry regarding profitability, 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.
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.
Each year in the past 5 years HBM had a positive operating cash flow.
1.2 Ratios
HBM has a Return On Assets of 7.80%. This is amongst the best in the industry. HBM outperforms 81.17% of its industry peers.
The Return On Equity of HBM (14.99%) is better than 86.36% of its industry peers.
HBM has a better Return On Invested Capital (8.08%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBM is significantly below the industry average of 13.20%.
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
HBM's Profit Margin of 22.38% is amongst the best of the industry. HBM outperforms 86.36% of its industry peers.
The Operating Margin of HBM (24.24%) is better than 74.03% of its industry peers.
In the last couple of years the Operating Margin of HBM has grown nicely.
The Gross Margin of HBM (31.87%) is better than 69.48% 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
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
HBM has an Altman-Z score of 2.18. This is not the best score and indicates that HBM is in the grey zone with still only limited risk for bankruptcy at the moment.
HBM has a Altman-Z score of 2.18. This is in the lower half of the industry: HBM underperforms 64.94% 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.
With a decent Debt to FCF ratio value of 3.78, HBM is doing good in the industry, outperforming 74.68% 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's Debt to Equity ratio of 0.20 is in line compared to the rest of the industry. HBM outperforms 46.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.92
WACC8.8%
2.3 Liquidity
HBM has a Current 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.
HBM has a worse Current ratio (0.97) than 85.06% 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.
The Quick ratio of HBM (0.76) is worse than 81.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.61% over the past year.
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 small growth in Revenue. The Revenue has grown by 1.20% in the last year.
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)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
The Revenue is expected to grow by 11.38% on average over the next years. This is quite good.
EPS Next Y83.98%
EPS Next 2Y57.68%
EPS Next 3Y43.14%
EPS Next 5Y37.29%
Revenue Next Year11.67%
Revenue Next 2Y8.01%
Revenue Next 3Y8.23%
Revenue Next 5Y11.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.09, HBM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HBM indicates a somewhat cheap valuation: HBM is cheaper than 70.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, HBM is valued at the same level.
With a Price/Forward Earnings ratio of 14.84, HBM is valued correctly.
Based on the Price/Forward Earnings ratio, HBM is valued a bit cheaper than 66.88% of the companies in the same industry.
HBM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBM is valued cheaper than 84.42% of the companies in the same industry.
87.01% 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 | 21.81 | ||
| EV/EBITDA | 8.18 |
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.
HBM has a very decent profitability rating, which may justify a higher PE ratio.
HBM's earnings are expected to grow with 43.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y57.68%
EPS Next 3Y43.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, HBM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.60, HBM has a dividend in line with its industry peers.
With a Dividend Yield of 0.09, HBM pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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 1.22% of its income as dividend. This is a sustainable payout ratio.
DP1.22%
EPS Next 2Y57.68%
EPS Next 3Y43.14%
17.34
-0.05 (-0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners80.14%
Inst Owner Change-0.08%
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap6.87B
Revenue(TTM)2.06B
Net Income(TTM)461.66M
Analysts83.81
Price Target17.23 (-0.63%)
Short Float %1.29%
Short Ratio0.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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)25.96%
PT rev (3m)32.59%
EPS NQ rev (1m)33.21%
EPS NQ rev (3m)78.28%
EPS NY rev (1m)3.41%
EPS NY rev (3m)8.36%
Revenue NQ rev (1m)17.05%
Revenue NQ rev (3m)21.25%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 14.84 | ||
| P/S | 3.33 | ||
| P/FCF | 21.81 | ||
| P/OCF | 9.29 | ||
| P/B | 2.23 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.64
EY3.69%
EPS(NY)1.17
Fwd EY6.74%
FCF(TTM)0.8
FCFY4.59%
OCF(TTM)1.87
OCFY10.77%
SpS5.21
BVpS7.78
TBVpS7.58
PEG (NY)0.32
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 | 2.18 |
F-Score6
WACC8.8%
ROIC/WACC0.92
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 Y83.98%
EPS Next 2Y57.68%
EPS Next 3Y43.14%
EPS Next 5Y37.29%
Revenue 1Y (TTM)1.2%
Revenue growth 3Y10.4%
Revenue growth 5Y10.31%
Sales Q2Q%-28.61%
Revenue Next Year11.67%
Revenue Next 2Y8.01%
Revenue Next 3Y8.23%
Revenue Next 5Y11.38%
EBIT growth 1Y21.35%
EBIT growth 3Y23.63%
EBIT growth 5Y66.43%
EBIT Next Year145.38%
EBIT Next 3Y40.82%
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 83.98% in the next year.