HECLA MINING CO (HCL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HCL - US4227041062 - Common Stock
27.08 EUR
+0.49 (+1.84%)
HCL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
- In the past 5 years HCL always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HCL (6.17%) is better than 64.44% of its industry peers.
- Looking at the Return On Equity, with a value of 8.11%, HCL is in line with its industry, outperforming 51.11% 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 53.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Profit Margin value of 16.22%, HCL is doing good in the industry, outperforming 73.33% of the companies in the same industry.
- HCL's Profit Margin has declined in the last couple of years.
- HCL has a Operating Margin of 28.85%. This is amongst the best in the industry. HCL outperforms 82.22% of its industry peers.
- HCL's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 36.12%, HCL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of HCL has grown nicely.
| 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.
- Compared to 1 year ago, HCL has more shares outstanding
- HCL has more shares outstanding than it did 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 17.24. This indicates that HCL is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of HCL (17.24) is better than 95.56% 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.
- Looking at the Debt to FCF ratio, with a value of 1.52, HCL is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- HCL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- HCL has a better Debt to Equity ratio (0.11) than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 17.24 |
ROIC/WACC0.6
WACC10.52%
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.
- Looking at the Current ratio, with a value of 2.15, HCL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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 Quick ratio (1.51) which is in line with 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.
- The earnings per share for HCL have been decreasing by -17.17% on average. This is quite bad
- Looking at the last year, HCL shows a very strong growth in Revenue. The Revenue has grown by 45.61%.
- HCL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.67% yearly.
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
- The Price/Earnings ratio is 112.83, which means the current valuation is very expensive for HCL.
- Compared to the rest of the industry, the Price/Earnings ratio of HCL indicates a slightly more expensive valuation: HCL is more expensive than 64.44% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HCL is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 40.03, 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 68.89% of the companies are valued more cheaply.
- HCL is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.83 | ||
| Fwd PE | 40.03 |
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 75.56% of the companies listed in the same industry.
- HCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.93 | ||
| EV/EBITDA | 41.18 |
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's earnings are expected to grow with 94.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
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.
- HCL's Dividend Yield is slightly below the industry average, which is at 1.67.
- Compared to an average S&P500 Dividend Yield of 1.81, 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
- HCL pays out 8.21% of its income as dividend. This is a 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 5 / 10 to HCL.DE.
What is the valuation status for HCL stock?
ChartMill assigns a valuation rating of 2 / 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 5 / 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.