HECLA MINING CO (HL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HL - US4227041062 - Common Stock
26.32 USD
-0.87 (-3.2%)
26.5565 USD
+0.24 (+0.9%)
Taking everything into account, HL scores 6 out of 10 in our fundamental rating. HL was compared to 154 industry peers in the Metals & Mining industry. HL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HL was profitable.
- HL had a positive operating cash flow in the past year.
- In multiple years HL reported negative net income over the last 5 years.
- Each year in the past 5 years HL had a positive operating cash flow.
1.2 Ratios
- HL has a better Return On Assets (6.17%) than 76.62% of its industry peers.
- HL has a better Return On Equity (8.11%) than 70.13% of its industry peers.
- HL has a better Return On Invested Capital (9.18%) than 77.27% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HL is significantly below the industry average of 10.32%.
- The 3 year average ROIC (1.48%) for HL is below the current ROIC(9.18%), indicating increased profibility in the last year.
| 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's Profit Margin of 16.22% is fine compared to the rest of the industry. HL outperforms 79.87% of its industry peers.
- HL's Profit Margin has declined in the last couple of years.
- HL has a Operating Margin of 28.85%. This is amongst the best in the industry. HL outperforms 81.17% 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 73.38% 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.
- 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 14.84. This indicates that HL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 14.84, HL is in the better half of the industry, outperforming 79.87% of the companies in the same industry.
- HL 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.
- HL has a better Debt to FCF ratio (1.52) than 83.12% of its industry peers.
- A Debt/Equity ratio of 0.11 indicates that HL is not too dependend on debt financing.
- HL has a better Debt to Equity ratio (0.11) than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 14.84 |
ROIC/WACC0.86
WACC10.63%
2.3 Liquidity
- HL has a Current Ratio of 2.15. This indicates that HL is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of HL (2.15) is comparable to the rest of the industry.
- A Quick Ratio of 1.51 indicates that HL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.51, HL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| 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.
- HL shows a strong growth in Revenue. In the last year, the Revenue has grown by 45.61%.
- Measured over the past years, HL shows a small growth in Revenue. The Revenue has been growing by 6.67% on average per year.
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.
- HL 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
- 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
- With a Price/Earnings ratio of 94.00, HL can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as HL.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, HL is valued quite expensively.
- A Price/Forward Earnings ratio of 33.13 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 25.83. HL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94 | ||
| Fwd PE | 33.13 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HL.
- Based on the Price/Free Cash Flow ratio, HL is valued a bit cheaper than the industry average as 65.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.79 | ||
| EV/EBITDA | 35.25 |
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.
- HL's earnings are expected to grow with 94.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y181.85%
EPS Next 3Y94.33%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.05%, HL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, HL has a dividend in line with its industry peers.
- With a Dividend Yield of 0.05, HL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
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.
- HL has decreased its dividend 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.
- The dividend of HL 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 / 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 94 and the Price/Book (PB) ratio is 7.2.
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.