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%)
We assign a fundamental rating of 6 out of 10 to HL. HL was compared to 154 industry peers in the Metals & Mining industry. While HL has a great health rating, its profitability is only average at the moment. 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.
- 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
- HL has a better Return On Assets (6.17%) than 76.62% of its industry peers.
- HL has a Return On Equity of 8.11%. This is in the better half of the industry: HL outperforms 70.13% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.18%, HL is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 16.22%, HL is in the better half of the industry, outperforming 79.87% of the companies in the same industry.
- HL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 28.85%, HL belongs to the top of the industry, outperforming 81.17% of the companies in the same industry.
- HL's Operating Margin has declined in the last couple of years.
- The Gross Margin of HL (36.12%) is better 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HL 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
- Compared to 1 year ago, HL has an improved debt to assets ratio.
2.2 Solvency
- HL has an Altman-Z score of 17.25. This indicates that HL is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 17.25, HL belongs to the best of the industry, outperforming 81.17% 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.
- With an excellent Debt to FCF ratio value of 1.52, HL belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
- A Debt/Equity ratio of 0.11 indicates that HL is not too dependend on debt financing.
- HL has a Debt to Equity ratio of 0.11. This is in the better half of the industry: HL outperforms 61.04% of its industry peers.
| 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.
- HL's Quick ratio of 1.51 is in line compared to the rest of the industry. HL outperforms 50.00% of 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.
- HL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.17% yearly.
- Looking at the last year, HL shows a very strong growth in Revenue. The Revenue has grown by 45.61%.
- HL 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
- The Earnings Per Share is expected to grow by 39.34% on average over the next years. This is a very strong growth
- 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 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
- A Price/Earnings ratio of 113.61 indicates a quite expensive valuation of HL.
- Compared to the rest of the industry, the Price/Earnings ratio of HL is on the same level as its industry peers.
- HL is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 40.04, the valuation of HL can be described as expensive.
- HL's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HL is valued quite 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HL indicates a somewhat cheap valuation: HL is cheaper than 62.34% of the companies listed in the same industry.
| 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.
- HL'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
- 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.
- 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
- On average, the dividend of HL grows each year by 30.08%, which is quite nice.
- 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
- 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 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.