HECLA MINING CO (HL) Stock Fundamental Analysis
NYSE:HL - New York Stock Exchange, Inc. - US4227041062 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HL. HL was compared to 154 industry peers in the Metals & Mining industry. There are concerns on the financial health of HL while its profitability can be described as average. HL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HL was profitable.
In the past year HL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HL reported negative net income in multiple years.
In the past 5 years HL always reported a positive cash flow from operatings.
1.2 Ratios
HL has a better Return On Assets (2.31%) than 67.53% of its industry peers.
HL has a better Return On Equity (3.37%) than 66.23% of its industry peers.
HL has a better Return On Invested Capital (4.65%) than 63.64% of its industry peers.
HL had an Average Return On Invested Capital over the past 3 years of 1.48%. This is significantly below the industry average of 11.67%.
The 3 year average ROIC (1.48%) for HL is below the current ROIC(4.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 3.37% | ||
| ROIC | 4.65% |
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
Looking at the Profit Margin, with a value of 6.98%, HL is in the better half of the industry, outperforming 75.32% of the companies in the same industry.
HL's Profit Margin has declined in the last couple of years.
The Operating Margin of HL (16.73%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of HL has declined.
Looking at the Gross Margin, with a value of 25.26%, HL is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
HL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.73% | ||
| PM (TTM) | 6.98% | ||
| GM | 25.26% |
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.
HL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HL has more shares outstanding
HL has a better debt/assets ratio than last year.
2.2 Solvency
HL has an Altman-Z score of 2.74. This is not the best score and indicates that HL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.74, HL is in line with its industry, outperforming 53.25% of the companies in the same industry.
HL has a debt to FCF ratio of 35.68. This is a negative value and a sign of low solvency as HL would need 35.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 35.68, HL is in line with its industry, outperforming 58.44% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that HL is not too dependend on debt financing.
The Debt to Equity ratio of HL (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 35.68 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.51
WACC9.02%
2.3 Liquidity
HL has a Current Ratio of 1.43. This is a normal value and indicates that HL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.43, HL is not doing good in the industry: 73.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that HL may have some problems paying its short term obligations.
The Quick ratio of HL (0.75) is worse than 79.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1400.00% over the past year.
The earnings per share for HL have been decreasing by -17.17% on average. This is quite bad
HL shows a strong growth in Revenue. In the last year, the Revenue has grown by 41.05%.
The Revenue has been growing slightly by 6.67% on average over the past years.
EPS 1Y (TTM)1400%
EPS 3Y-17.17%
EPS 5YN/A
EPS Q2Q%300%
Revenue 1Y (TTM)41.05%
Revenue growth 3Y4.82%
Revenue growth 5Y6.67%
Sales Q2Q%37.89%
3.2 Future
The Earnings Per Share is expected to grow by 28.86% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -2.13% on average over the next years.
EPS Next Y132.48%
EPS Next 2Y97.84%
EPS Next 3Y46.62%
EPS Next 5Y28.86%
Revenue Next Year9.82%
Revenue Next 2Y5.99%
Revenue Next 3Y-1.46%
Revenue Next 5Y-2.13%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.38, HL can be considered very expensive at the moment.
HL's Price/Earnings is on the same level as the industry average.
HL is valuated expensively when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
HL is valuated correctly with a Price/Forward Earnings ratio of 15.41.
Based on the Price/Forward Earnings ratio, HL is valued a bit cheaper than the industry average as 61.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.38 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HL is valued a bit cheaper than 62.34% of the companies in the same industry.
HL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 239.34 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
HL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HL may justify a higher PE ratio.
A more expensive valuation may be justified as HL's earnings are expected to grow with 46.62% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y97.84%
EPS Next 3Y46.62%
5. Dividend
5.1 Amount
HL has a yearly dividend return of 0.25%, which is pretty low.
Compared to an average industry Dividend Yield of 2.98, HL has a dividend in line with its industry peers.
With a Dividend Yield of 0.25, HL pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
The dividend of HL is nicely growing with an annual growth rate of 30.08%!
HL has been paying a dividend for at least 10 years, so it has 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
34.13% of the earnings are spent on dividend by HL. This is a low number and sustainable payout ratio.
The dividend of HL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.13%
EPS Next 2Y97.84%
EPS Next 3Y46.62%
6.03
+0.06 (+1.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners68.29%
Inst Owner Change3.6%
Ins Owners0.56%
Ins Owner Change9.51%
Market Cap3.81B
Analysts78.89
Price Target7.14 (18.41%)
Short Float %4.49%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.04
Dividend Growth(5Y)30.08%
DP34.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.55%
Min EPS beat(2)-26.27%
Max EPS beat(2)-24.84%
EPS beat(4)0
Avg EPS beat(4)-33.93%
Min EPS beat(4)-46.06%
Max EPS beat(4)-24.84%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.05%
Min Revenue beat(2)0.71%
Max Revenue beat(2)7.39%
Revenue beat(4)4
Avg Revenue beat(4)5.16%
Min Revenue beat(4)0.71%
Max Revenue beat(4)8.8%
Revenue beat(8)7
Avg Revenue beat(8)2.83%
Revenue beat(12)7
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)-1.2%
PT rev (1m)0%
PT rev (3m)-7.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.78%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-3.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.38 | ||
| Fwd PE | 15.41 | ||
| P/S | 3.81 | ||
| P/FCF | 239.34 | ||
| P/OCF | 16.1 | ||
| P/B | 1.84 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)0.13
EY2.16%
EPS(NY)0.39
Fwd EY6.49%
FCF(TTM)0.03
FCFY0.42%
OCF(TTM)0.37
OCFY6.21%
SpS1.58
BVpS3.28
TBVpS3.28
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.31% | ||
| ROE | 3.37% | ||
| ROCE | 5.88% | ||
| ROIC | 4.65% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 4.68% | ||
| OM | 16.73% | ||
| PM (TTM) | 6.98% | ||
| GM | 25.26% | ||
| FCFM | 1.59% |
ROA(3y)-0.98%
ROA(5y)-0.41%
ROE(3y)-1.5%
ROE(5y)-0.62%
ROIC(3y)1.48%
ROIC(5y)2.12%
ROICexc(3y)1.51%
ROICexc(5y)2.22%
ROICexgc(3y)1.51%
ROICexgc(5y)2.22%
ROCE(3y)1.88%
ROCE(5y)2.68%
ROICexcg growth 3Y-2.84%
ROICexcg growth 5YN/A
ROICexc growth 3Y-2.84%
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 35.68 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 123.87% | ||
| Cap/Sales | 22.06% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 68.47% | ||
| Profit Quality | 22.81% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.74 |
F-Score7
WACC9.02%
ROIC/WACC0.51
Cap/Depr(3y)117.46%
Cap/Depr(5y)94.19%
Cap/Sales(3y)24.98%
Cap/Sales(5y)20.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1400%
EPS 3Y-17.17%
EPS 5YN/A
EPS Q2Q%300%
EPS Next Y132.48%
EPS Next 2Y97.84%
EPS Next 3Y46.62%
EPS Next 5Y28.86%
Revenue 1Y (TTM)41.05%
Revenue growth 3Y4.82%
Revenue growth 5Y6.67%
Sales Q2Q%37.89%
Revenue Next Year9.82%
Revenue Next 2Y5.99%
Revenue Next 3Y-1.46%
Revenue Next 5Y-2.13%
EBIT growth 1Y894.37%
EBIT growth 3Y2.34%
EBIT growth 5YN/A
EBIT Next Year188.41%
EBIT Next 3Y42.78%
EBIT Next 5Y25.55%
FCF growth 1Y117.77%
FCF growth 3Y-67.6%
FCF growth 5YN/A
OCF growth 1Y155.87%
OCF growth 3Y-0.31%
OCF growth 5Y12.54%