HECLA MINING CO (HL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HL - US4227041062 - Common Stock
31.81 USD
+0.52 (+1.66%)
31.84 USD
+0.03 (+0.09%)
HL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent 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.
- The reported net income has been mixed in the past 5 years: HL reported negative net income in multiple years.
- Each year in the past 5 years HL had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.17%, HL is doing good in the industry, outperforming 76.62% of the companies in the same industry.
- HL's Return On Equity of 8.11% is fine compared to the rest of the industry. HL outperforms 70.13% of its industry peers.
- HL has a better Return On Invested Capital (9.18%) than 77.27% 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 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
- With a decent Profit Margin value of 16.22%, HL is doing good in the industry, outperforming 79.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of HL has declined.
- HL has a better Operating Margin (28.85%) than 81.17% of its industry peers.
- HL's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 36.12%, HL is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
- In the last couple of years the Gross Margin of HL 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HL is destroying value.
- Compared to 1 year ago, HL has more shares outstanding
- The number of shares outstanding for HL has been increased compared to 5 years ago.
- Compared to 1 year ago, HL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 17.25 indicates that HL is not in any danger for bankruptcy at the moment.
- HL's Altman-Z score of 17.25 is amongst the best of the industry. HL outperforms 81.17% 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's Debt to FCF ratio of 1.52 is amongst the best of the industry. HL outperforms 83.12% of its industry peers.
- HL has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.11, HL is doing good in the industry, outperforming 61.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 17.25 |
ROIC/WACC0.88
WACC10.46%
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.
- HL's Current ratio of 2.15 is in line compared to the rest of the industry. HL outperforms 44.81% of its industry peers.
- A Quick Ratio of 1.51 indicates that HL should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.51, HL perfoms like the industry average, 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.
- 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 45.61%.
- 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.
- The Revenue is expected to grow by 6.83% on average over the next years.
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
- A Price/Earnings ratio of 113.61 indicates a quite expensive valuation of HL.
- The rest of the industry has a similar Price/Earnings ratio as HL.
- The average S&P500 Price/Earnings ratio is at 27.21. HL is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 40.04 indicates a quite expensive valuation of HL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HL is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of HL to the average of the S&P500 Index (25.98), we can say HL is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.61 | ||
| Fwd PE | 40.04 |
4.2 Price Multiples
- HL's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, HL is valued a bit cheaper than the industry average as 62.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 116.97 | ||
| EV/EBITDA | 41.19 |
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)0.41
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.
- HL's Dividend Yield is comparable with the industry average which is at 1.02.
- Compared to an average S&P500 Dividend Yield of 1.81, HL's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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 113.61 and the Price/Book (PB) ratio is 8.7.
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.