HECLA MINING CO (HL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HL - US4227041062 - Common Stock
31.29 USD
+2.41 (+8.34%)
31.7605 USD
+0.47 (+1.5%)
HL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. HL has an excellent financial health rating, but there are some minor concerns on its profitability. HL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- HL had positive earnings in the past year.
- In the past year HL had a positive cash flow from operations.
- In multiple years HL reported negative net income over the last 5 years.
- In the past 5 years HL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.17%, HL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- The Return On Equity of HL (8.11%) is better than 70.51% of its industry peers.
- HL's Return On Invested Capital of 9.18% is fine compared to the rest of the industry. HL outperforms 77.56% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HL is significantly below the industry average of 10.34%.
- The last Return On Invested Capital (9.18%) for HL is above the 3 year average (1.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.17% | ||
| ROE | 8.11% | ||
| ROIC | 9.18% |
ROA(3y)-0.98%
ROA(5y)-0.41%
ROE(3y)-1.5%
ROE(5y)-0.62%
ROIC(3y)1.48%
ROIC(5y)2.12%
1.3 Margins
- HL has a Profit Margin of 16.22%. This is amongst the best in the industry. HL outperforms 80.13% of its industry peers.
- In the last couple of years the Profit Margin of HL has declined.
- The Operating Margin of HL (28.85%) is better than 81.41% of its industry peers.
- HL's Operating Margin has declined in the last couple of years.
- HL has a better Gross Margin (36.12%) than 73.72% of its industry peers.
- HL'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
- HL 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 HL has been increased compared to 1 year ago.
- HL has more shares outstanding than it did 5 years ago.
- HL has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 15.72 indicates that HL is not in any danger for bankruptcy at the moment.
- HL has a better Altman-Z score (15.72) than 80.77% of its industry peers.
- The Debt to FCF ratio of HL is 1.52, which is an excellent value as it means it would take HL, only 1.52 years of fcf income to pay off all of its debts.
- HL has a better Debt to FCF ratio (1.52) than 82.69% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that HL is not too dependend on debt financing.
- The Debt to Equity ratio of HL (0.11) is better than 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 15.72 |
ROIC/WACC0.88
WACC10.47%
2.3 Liquidity
- A Current Ratio of 2.15 indicates that HL has no problem at all paying its short term obligations.
- HL has a Current ratio of 2.15. This is comparable to the rest of the industry: HL outperforms 44.87% of its industry peers.
- A Quick Ratio of 1.51 indicates that HL should not have too much problems paying its short term obligations.
- HL 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
- HL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1300.00%, which is quite impressive.
- HL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.17% yearly.
- 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
- HL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.34% yearly.
- Based on estimates for the next years, HL will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y275.95%
EPS Next 2Y181.85%
EPS Next 3Y94.33%
EPS Next 5Y39.34%
Revenue Next Year40.73%
Revenue Next 2Y27.53%
Revenue Next 3Y10.23%
Revenue Next 5Y6.83%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 111.75, the valuation of HL can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as HL.
- HL is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 39.39 indicates a quite expensive valuation of HL.
- HL's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. HL is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.75 | ||
| Fwd PE | 39.39 |
4.2 Price Multiples
- HL's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, HL is valued a bit cheaper than 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.06 | ||
| EV/EBITDA | 37.42 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HL has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as HL's earnings are expected to grow with 94.33% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.06%, HL is not a good candidate for dividend investing.
- HL's Dividend Yield is comparable with the industry average which is at 0.96.
- Compared to an average S&P500 Dividend Yield of 1.83, HL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
5.2 History
- The dividend of HL is nicely growing with an annual growth rate of 30.08%!
- HL has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of HL decreased in the last 3 years.
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 HL. This is a low number and sustainable payout ratio.
- HL'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 / HL FAQ
What is the fundamental rating for HL stock?
ChartMill assigns a fundamental rating of 6 / 10 to HL.
Can you provide the valuation status for HECLA MINING CO?
ChartMill assigns a valuation rating of 4 / 10 to HECLA MINING CO (HL). This can be considered as Fairly Valued.
How profitable is HECLA MINING CO (HL) stock?
HECLA MINING CO (HL) has a profitability rating of 6 / 10.
What are the PE and PB ratios of HECLA MINING CO (HL) stock?
The Price/Earnings (PE) ratio for HECLA MINING CO (HL) is 111.75 and the Price/Book (PB) ratio is 8.56.
Can you provide the expected EPS growth for HL stock?
The Earnings per Share (EPS) of HECLA MINING CO (HL) is expected to grow by 275.95% in the next year.