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HBM

Hudbay MineralsTSX:HBM Stock Report

Market Cap

CA$2.3b

7D

-1.9%

1Y

-9.3%

Updated

04 Dec, 2021

Data

Company Financials +
HBM fundamental analysis
Snowflake Score
Valuation1/6
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 54.21% per year

Risk Analysis

No risks detected for HBM from our risk checks.

Hudbay Minerals Competitors

Teck Resources

TSX:TECK.B

CA$18.2b

Ivanhoe Mines

TSX:IVN

CA$11.6b

Capstone Mining

TSX:CS

CA$2.5b

Trevali Mining

TSX:TV

CA$163.3m

Price History & Performance

Summary of all time highs, changes and price drops for Hudbay Minerals
Historical stock prices
Current Share PriceCA$8.46
52 Week HighCA$11.62
52 Week LowCA$6.70
Beta1.94
1 Month Change2.80%
3 Month Change6.82%
1 Year Change-9.33%
3 Year Change29.95%
5 Year Change-9.62%
Change since IPO302.82%

Recent News & Updates

Nov 14
Is Hudbay Minerals (TSE:HBM) Using Too Much Debt?

Is Hudbay Minerals (TSE:HBM) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

HBMCA Metals and MiningCA Market
7D-1.9%-3.6%-2.2%
1Y-9.3%-0.9%18.5%

Return vs Industry: HBM underperformed the Canadian Metals and Mining industry which returned -1.1% over the past year.

Return vs Market: HBM underperformed the Canadian Market which returned 20.3% over the past year.

Price Volatility

Is HBM's price volatile compared to industry and market?
HBM volatility
HBM Average Weekly Movement6.5%
Metals and Mining Industry Average Movement10.7%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.6%

Stable Share Price: HBM is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HBM's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19272,242Peter 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; 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 CapUS$1.77b
Earnings (TTM)-US$226.50m
Revenue (TTM)US$1.40b

1.2x

P/S Ratio

-7.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBM income statement (TTM)
RevenueUS$1.40b
Cost of RevenueUS$801.69m
Gross ProfitUS$597.43m
ExpensesUS$823.93m
Earnings-US$226.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.87
Gross Margin42.70%
Net Profit Margin-16.19%
Debt/Equity Ratio79.4%

How did HBM perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

-2%

Payout Ratio

Valuation

Is Hudbay Minerals undervalued compared to its fair value and its price relative to the market?

1.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HBM (CA$8.46) is trading above our estimate of fair value (CA$0.16)

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


Price To Earnings Ratio

PE vs Industry: HBM is unprofitable, so we can't compare its PE Ratio to the Canadian Metals and Mining industry average.

PE vs Market: HBM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HBM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBM is good value based on its PB Ratio (1.2x) compared to the CA Metals and Mining industry average (2.3x).


Future Growth

How is Hudbay Minerals forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

54.2%

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's is expected to become profitable in the next 3 years.

Revenue vs Market: HBM's revenue (3.8% per year) is forecast to grow slower than the Canadian market (5.4% per year).

High Growth Revenue: HBM's revenue (3.8% 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 (8.7%).


Past Performance

How has Hudbay Minerals performed over the past 5 years?

-34.6%

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 34.6% 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 (118.7%).


Return on Equity

High ROE: HBM has a negative Return on Equity (-15.2%), as it is currently unprofitable.


Financial Health

How is Hudbay Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: HBM's short term assets ($583.6M) exceed its short term liabilities ($423.7M).

Long Term Liabilities: HBM's short term assets ($583.6M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: HBM's net debt to equity ratio (59.4%) is considered high.

Reducing Debt: HBM's debt to equity ratio has increased from 67.3% to 79.4% 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 4.3% per year.


Dividend

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

0.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBM's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: HBM's dividend (0.24%) is low compared to the top 25% of dividend payers in the Canadian market (4.72%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HBM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Peter Gerald Kukielski (65 yo)

2.42yrs

Tenure

US$4,087,402

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 ($USD4.09M) is above average for companies of similar size in the Canadian market ($USD1.92M).

Compensation vs Earnings: Peter Gerald's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: HBM's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: HBM's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: CA$2.262b
  • Shares outstanding: 261.53m
  • Website: https://www.hudbayminerals.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/04 00:02
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.