HECLA MINING CO (HCL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HCL - US4227041062 - Common Stock
23.1 EUR
-0.19 (-0.82%)
Overall HCL gets a fundamental rating of 6 out of 10. We evaluated HCL against 45 industry peers in the Metals & Mining industry. HCL has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, HCL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year HCL was profitable.
- In the past year HCL had a positive cash flow from operations.
- In multiple years HCL reported negative net income over the last 5 years.
- HCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.17%, HCL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- HCL has a Return On Equity of 8.11%. This is comparable to the rest of the industry: HCL outperforms 53.33% of its industry peers.
- HCL has a Return On Invested Capital (6.28%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HCL is significantly below the industry average of 8.05%.
- The 3 year average ROIC (1.02%) for HCL is below the current ROIC(6.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 8.11% | ||
| ROIC | 6.28% |
ROA(3y)-0.98%
ROA(5y)-0.41%
ROE(3y)-1.5%
ROE(5y)-0.62%
ROIC(3y)1.02%
ROIC(5y)1.45%
1.3 Margins
- The Profit Margin of HCL (16.22%) is better than 75.56% of its industry peers.
- HCL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 28.85%, HCL belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
- HCL's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 36.12%, HCL is doing good in the industry, outperforming 62.22% of the companies in the same industry.
- HCL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.85% | ||
| PM (TTM) | 16.22% | ||
| GM | 36.12% |
OM growth 3Y-2.36%
OM growth 5YN/A
PM growth 3Y-3.91%
PM growth 5YN/A
GM growth 3Y-7.55%
GM growth 5Y33.53%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HCL is destroying value.
- HCL has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HCL has been increased compared to 5 years ago.
- Compared to 1 year ago, HCL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 15.15 indicates that HCL is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 15.15, HCL belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
- HCL has a debt to FCF ratio of 1.52. This is a very positive value and a sign of high solvency as it would only need 1.52 years to pay back of all of its debts.
- HCL has a Debt to FCF ratio of 1.52. This is amongst the best in the industry. HCL outperforms 82.22% of its industry peers.
- HCL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.11, HCL is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 15.15 |
ROIC/WACC0.6
WACC10.51%
2.3 Liquidity
- HCL has a Current Ratio of 2.15. This indicates that HCL is financially healthy and has no problem in meeting its short term obligations.
- HCL has a better Current ratio (2.15) than 68.89% of its industry peers.
- HCL has a Quick Ratio of 1.51. This is a normal value and indicates that HCL is financially healthy and should not expect problems in meeting its short term obligations.
- HCL has a better Quick ratio (1.51) than 62.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 1300.00% over the past year.
- HCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.17% yearly.
- Looking at the last year, HCL shows a very strong growth in Revenue. The Revenue has grown by 45.61%.
- The Revenue has been growing slightly by 6.67% on average over the past years.
EPS 1Y (TTM)1300%
EPS 3Y-17.17%
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)45.61%
Revenue growth 3Y4.82%
Revenue growth 5Y6.67%
Sales Q2Q%67.1%
3.2 Future
- HCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.34% yearly.
- HCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.83% yearly.
EPS Next Y275.95%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
EPS Next 5Y39.34%
Revenue Next Year41.05%
Revenue Next 2Y27.32%
Revenue Next 3Y10.23%
Revenue Next 5Y6.83%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 100.43 indicates a quite expensive valuation of HCL.
- Based on the Price/Earnings ratio, HCL is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
- When comparing the Price/Earnings ratio of HCL to the average of the S&P500 Index (28.60), we can say HCL is valued expensively.
- Based on the Price/Forward Earnings ratio of 34.69, the valuation of HCL can be described as expensive.
- 64.44% of the companies in the same industry are cheaper than HCL, based on the Price/Forward Earnings ratio.
- HCL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.43 | ||
| Fwd PE | 34.69 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCL indicates a slightly more expensive valuation: HCL is more expensive than 71.11% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.33 | ||
| EV/EBITDA | 36.01 |
4.3 Compensation for Growth
- HCL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HCL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HCL's earnings are expected to grow with 94.33% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- HCL has a yearly dividend return of 0.05%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.67, HCL is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, HCL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
5.2 History
- On average, the dividend of HCL grows each year by 30.08%, which is quite nice.
Dividend Growth(5Y)30.08%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 8.21% of the earnings are spent on dividend by HCL. This is a low number and sustainable payout ratio.
- HCL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.21%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
HECLA MINING CO / HCL.DE FAQ
What is the ChartMill fundamental rating of HECLA MINING CO (HCL.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HCL.DE.
What is the valuation status for HCL stock?
ChartMill assigns a valuation rating of 3 / 10 to HECLA MINING CO (HCL.DE). This can be considered as Overvalued.
How profitable is HECLA MINING CO (HCL.DE) stock?
HECLA MINING CO (HCL.DE) has a profitability rating of 6 / 10.
How financially healthy is HECLA MINING CO?
The financial health rating of HECLA MINING CO (HCL.DE) is 7 / 10.
What is the earnings growth outlook for HECLA MINING CO?
The Earnings per Share (EPS) of HECLA MINING CO (HCL.DE) is expected to grow by 275.95% in the next year.