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HBM

Hudbay Minerals TSX:HBM Stock Report

Last Price

CA$5.32

Market Cap

CA$1.4b

7D

-6.2%

1Y

-28.8%

Updated

25 Sep, 2022

Data

Company Financials +
HBM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

HBM Stock Overview

Hudbay Minerals Inc., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America.

Rewards

Earnings are forecast to grow 16.16% per year

Trading below our calculated fair Price-To-Sales ratio

Risk Analysis

No risks detected for HBM from our risk checks.

Hudbay Minerals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hudbay Minerals
Historical stock prices
Current Share PriceCA$5.32
52 Week HighCA$11.17
52 Week LowCA$4.07
Beta1.89
1 Month Change-14.19%
3 Month Change-9.37%
1 Year Change-28.78%
3 Year Change10.37%
5 Year Change-42.49%
Change since IPO153.31%

Recent News & Updates

Aug 10
Here's What's Concerning About Hudbay Minerals' (TSE:HBM) Returns On Capital

Here's What's Concerning About Hudbay Minerals' (TSE:HBM) Returns On Capital

When researching a stock for investment, what can tell us that the company is in decline? Typically, we'll see the...

Shareholder Returns

HBMCA Metals and MiningCA Market
7D-6.2%-4.9%-4.8%
1Y-28.8%-15.5%-7.3%

Return vs Industry: HBM underperformed the Canadian Metals and Mining industry which returned -15.5% over the past year.

Return vs Market: HBM underperformed the Canadian Market which returned -7.2% over the past year.

Price Volatility

Is HBM's price volatile compared to industry and market?
HBM volatility
HBM Average Weekly Movement9.3%
Metals and Mining Industry Average Movement11.4%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

Stable Share Price: HBM is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: HBM's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1927n/aPeter Gerald Kukielskihttps://www.hudbayminerals.com

Hudbay Minerals Inc., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; silver/gold doré; molybdenum concentrates; and zinc metals. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States.

Hudbay Minerals Fundamentals Summary

How do Hudbay Minerals's earnings and revenue compare to its market cap?
HBM fundamental statistics
Market CapCA$1.39b
Earnings (TTM)-CA$115.17m
Revenue (TTM)CA$2.14b

0.7x

P/S Ratio

-12.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBM income statement (TTM)
RevenueUS$1.58b
Cost of RevenueUS$876.59m
Gross ProfitUS$701.61m
Other ExpensesUS$786.52m
Earnings-US$84.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.32
Gross Margin44.46%
Net Profit Margin-5.38%
Debt/Equity Ratio73.8%

How did HBM perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

-5%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HBM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HBM?

Other financial metrics that can be useful for relative valuation.

HBM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA3.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does HBM's PS Ratio compare to its peers?

HBM PS Ratio vs Peers
The above table shows the PS ratio for HBM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.5x
ALS Altius Minerals
8.5x-11.4%CA$829.6m
MDI Major Drilling Group International
0.9x7.8%CA$637.9m
LGO Largo
1.5x5.9%CA$460.5m
TRQ Turquoise Hill Resources
3.1x30.3%CA$8.2b
HBM Hudbay Minerals
0.7x1.7%CA$1.4b

Price-To-Sales vs Peers: HBM is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (3.5x).


Price to Earnings Ratio vs Industry

How does HBM's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

Price-To-Sales vs Industry: HBM is good value based on its Price-To-Sales Ratio (0.7x) compared to the Canadian Metals and Mining industry average (2.1x)


Price to Sales Ratio vs Fair Ratio

What is HBM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HBM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio1.7x

Price-To-Sales vs Fair Ratio: HBM is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).


Share Price vs Fair Value

What is the Fair Price of HBM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HBM (CA$5.32) is trading above our estimate of fair value (CA$0.16)

Significantly Below Fair Value: HBM is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Hudbay Minerals forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: HBM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HBM is expected to become profitable in the next 3 years.

Revenue vs Market: HBM's revenue (1.7% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: HBM's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBM's Return on Equity is forecast to be low in 3 years time (12.2%).


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Past Performance

How has Hudbay Minerals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-40.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HBM is currently unprofitable.

Growing Profit Margin: HBM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HBM is unprofitable, and losses have increased over the past 5 years at a rate of 40.8% per year.

Accelerating Growth: Unable to compare HBM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HBM is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-8.3%).


Return on Equity

High ROE: HBM has a negative Return on Equity (-5.3%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Hudbay Minerals's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HBM's short term assets ($619.7M) exceed its short term liabilities ($439.4M).

Long Term Liabilities: HBM's short term assets ($619.7M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: HBM's net debt to equity ratio (57.7%) is considered high.

Reducing Debt: HBM's debt to equity ratio has increased from 61.3% to 73.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HBM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HBM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 35.6% per year.


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Dividend

What is Hudbay Minerals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HBM's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: HBM's dividend (0.38%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


Stability and Growth of Payments

Stable Dividend: HBM is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: HBM is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: HBM is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: HBM is not paying a notable dividend for the Canadian market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Peter Gerald Kukielski (66 yo)

3.17yrs

Tenure

US$3,690,389

Compensation

Mr. Peter Gerald Jan Kukielski, MSc, BSc serves as President and Chief Executive Officer of Hudbay Minerals Inc. since January 22, 2020. He had been Interim President of Hudbay Minerals Inc. since July 201...


CEO Compensation Analysis

Compensation vs Market: Peter Gerald's total compensation ($USD3.69M) is above average for companies of similar size in the Canadian market ($USD1.55M).

Compensation vs Earnings: Peter Gerald's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HBM's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: HBM's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HBM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSX:HBM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Jun 22BuyCA$20,400Chi-Yen LeiIndividual4,000CA$5.10
13 Jun 22BuyCA$75,279David SmithIndividual11,500CA$6.55
31 Mar 22BuyCA$49,578Peter Gerald KukielskiIndividual5,000CA$9.92

Ownership Breakdown

What is the ownership structure of HBM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders748,2480.3%
Hedge Funds30,994,42011.8%
VC/PE Firms43,855,28716.7%
General Public72,869,09227.8%
Institutions113,422,96143.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 61.21% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.75%
Waterton Global Resource Management, Inc.
43,855,287$233.3m0%78.29%
11.83%
GMT Capital Corp.
30,994,420$164.9m-0.26%5.19%
7%
L1 Capital Pty. Limited
18,339,454$97.6m43.59%4.24%
5.45%
Letko, Brosseau & Associates Inc.
14,267,562$75.9m-0.38%0.98%
2.78%
The Vanguard Group, Inc.
7,290,034$38.8m0.6%no data
1.94%
Mirae Asset Global Investments Co., Ltd
5,071,884$27.0m9.86%0.03%
1.63%
Condire Management, LP
4,273,919$22.7m0%3.95%
1.47%
Invesco Ltd.
3,843,103$20.4m33.31%0.01%
1.43%
Heathbridge Capital Management Ltd.
3,747,365$19.9m-0.62%6.85%
1.25%
Renaissance Technologies LLC
3,269,629$17.4m1.44%0.02%
0.94%
ETF Managers Group LLC
2,456,169$13.1m-12.48%0.28%
0.84%
Thornburg Investment Management, Inc.
2,190,388$11.7m-1.51%0.06%
0.76%
Morgan Meighen & Associates Limited
2,000,000$10.6m0%0.8%
0.75%
Scotiabank Global Banking and Markets, Asset Management Division
1,975,294$10.5m2.35%0.06%
0.74%
Macquarie Investment Management Business Trust
1,927,533$10.3m62.05%0.01%
0.73%
Janus Henderson Group plc
1,906,823$10.1m72.18%no data
0.71%
Pacific Investment Management Company LLC
1,850,000$9.8m0%0.04%
0.69%
CI Global Asset Management
1,813,672$9.6m-0.01%0.02%
0.65%
BMO Asset Management Corp.
1,711,529$9.1m8.14%no data
0.59%
Millennium Management LLC
1,534,928$8.2m-45.72%0.01%
0.55%
Citadel Advisors LLC
1,444,457$7.7m62.97%0.01%
0.48%
Morgan Stanley, Investment Banking and Brokerage Investments
1,257,863$6.7m-11.82%no data
0.45%
Baker Steel Capital Managers LLP
1,180,000$6.3m11.85%0.6%
0.4%
Connor, Clark & Lunn Investment Management Ltd.
1,054,349$5.6m-12.69%0.02%
0.4%
Konwave AG
1,053,000$5.6m0%0.53%

Company Information

Hudbay Minerals Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hudbay Minerals Inc.
  • Ticker: HBM
  • Exchange: TSX
  • Founded: 1927
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: CA$1.393b
  • Shares outstanding: 261.89m
  • Website: https://www.hudbayminerals.com

Number of Employees


Location

  • Hudbay Minerals Inc.
  • 25 York Street
  • Suite 800
  • Toronto
  • Ontario
  • M5J 2V5
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBMTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2002
HBMNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 2002
OCKADB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2002
HBMBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDMar 2002
0AHJLSE (London Stock Exchange)YesCommon SharesGBCADMar 2002

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.