HECLA MINING CO (HCL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HCL - US4227041062 - Common Stock
23.1 EUR
-0.19 (-0.82%)
Taking everything into account, HCL scores 6 out of 10 in our fundamental rating. HCL was compared to 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.
- The reported net income has been mixed in the past 5 years: HCL reported negative net income in multiple years.
- HCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HCL has a Return On Assets of 6.17%. This is in the better half of the industry: HCL outperforms 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 8.11%, HCL is in line with its industry, outperforming 53.33% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.28%, HCL is in line with its industry, outperforming 55.56% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HCL is significantly below the industry average of 8.05%.
- The last Return On Invested Capital (6.28%) for HCL is above the 3 year average (1.02%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 16.22%, HCL is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
- In the last couple of years the Profit Margin of HCL has declined.
- With an excellent Operating Margin value of 28.85%, HCL belongs to the best 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.
- HCL has a Gross Margin of 36.12%. This is in the better half of the industry: HCL outperforms 62.22% of its industry peers.
- 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
- HCL 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 HCL has been increased compared to 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
- HCL has an Altman-Z score of 15.08. This indicates that HCL is financially healthy and has little risk of bankruptcy at the moment.
- HCL's Altman-Z score of 15.08 is amongst the best of the industry. HCL outperforms 91.11% of its industry peers.
- The Debt to FCF ratio of HCL is 1.52, which is an excellent value as it means it would take HCL, only 1.52 years of fcf income to pay off 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.
- A Debt/Equity ratio of 0.11 indicates that HCL is not too dependend on debt financing.
- HCL has a better Debt to Equity ratio (0.11) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 15.08 |
ROIC/WACC0.6
WACC10.51%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that HCL has no problem at all paying 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.
- Looking at the Quick ratio, with a value of 1.51, HCL is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
| 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.
- The earnings per share for HCL have been decreasing by -17.17% on average. This is quite bad
- The Revenue has grown by 45.61% in the past year. This is a very strong growth!
- 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
- The Earnings Per Share is expected to grow by 39.34% on average over the next years. This is a very strong growth
- 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.
- 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
- The Price/Earnings ratio is 100.43, which means the current valuation is very expensive for HCL.
- 62.22% of the companies in the same industry are cheaper than HCL, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. HCL is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 34.82, the valuation of HCL can be described as expensive.
- Based on the Price/Forward Earnings ratio, HCL is valued a bit more expensive than the industry average as 64.44% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of HCL to the average of the S&P500 Index (25.83), we can say HCL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.43 | ||
| Fwd PE | 34.82 |
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.
- HCL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.71 | ||
| EV/EBITDA | 35.85 |
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.
- HCL's earnings are expected to grow with 94.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.05%, HCL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.67, HCL is paying slightly less dividend.
- With a Dividend Yield of 0.05, HCL pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- The dividend of HCL is growing, but earnings are growing more, so the dividend growth is 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.