TSX:HBM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Hudbay Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

HBM

0.1%

CA Metals and Mining

-0.2%

CA Market


1 Year Return

-16.8%

HBM

12.3%

CA Metals and Mining

1.1%

CA Market

Return vs Industry: HBM underperformed the Canadian Metals and Mining industry which returned 12.3% over the past year.

Return vs Market: HBM underperformed the Canadian Market which returned 1.1% over the past year.


Shareholder returns

HBMIndustryMarket
7 Day0.4%0.1%-0.2%
30 Day-6.9%-5.2%-3.3%
90 Day-33.9%-4.8%-1.6%
1 Year-16.5%-16.8%13.2%12.3%4.6%1.1%
3 Year-11.9%-12.6%-11.5%-13.1%13.1%3.1%
5 Year-43.5%-44.3%7.5%3.4%24.7%6.7%

Price Volatility Vs. Market

How volatile is Hudbay Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: HBM (CA$4.72) is trading above our estimate of fair value (CA$0.41)

Significantly Undervalued: 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 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

Low 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 (0.4x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Hudbay Minerals forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

64.3%

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 (1.9%).

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

High Growth Earnings: HBM's loss is forecast to worsen by 0% next year.

Revenue vs Market: HBM's revenue (1.3% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: HBM's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HBM's Return on Equity is forecast to be low in 3 years time (1.2%).


Next Steps

Past Performance

How has Hudbay Minerals performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HBM is unprofitable, but has reduced losses over the past 5 years at a rate of 34.2% 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 (-13.7%).


Return on Equity

High ROE: HBM has a negative Return on Equity (-2.27%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HBM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HBM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hudbay Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: HBM's short term assets ($754.4M) exceeds its short term liabilities ($326.3M)

Long Term Liabilities: HBM's short term assets (754.4M) do not cover its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: HBM's debt to equity ratio (45.9%) is considered high

Reducing Debt: HBM's debt to equity ratio has reduced from 48.3% to 45.9% over the past 5 years.


Balance Sheet

Inventory Level: HBM has a high level of physical assets or inventory.

Debt Coverage by Assets: HBM's debt is not covered by short term assets (assets are 0.8x debt).


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, due to free cash flow being positive and growing by 8.4% per year.


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HBM's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: HBM's dividend (0.42%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

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

What is the CEO of Hudbay Minerals's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Peter Gerald Kukielski (62yo)

0.3yrs

Tenure

0

Mr. Peter Gerald Jan Kukielski, MSc, BSc has been Interim President of Hudbay Minerals Inc. since July 2019. Mr. Kukielski serves as a Director of Norsk Hydro ASA since May 29, 2019. Mr. Kukielski has been ...


Management Age and Tenure

4.3yrs

Average Tenure

Experienced Management: HBM's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

62yo

Average Age

Experienced Board: HBM's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$53,29716 Oct 19
Thomas Claugus
EntityIndividual
Shares11,700
Max PriceUS$4.56
SellUS$1,366,59316 Oct 19
GMT Capital Corp.
EntityCompany
Shares300,000
Max PriceUS$4.56
SellUS$1,267,28410 Oct 19
GMT Capital Corp.
EntityCompany
Shares300,000
Max PriceUS$4.22
SellUS$49,42410 Oct 19
Thomas Claugus
EntityIndividual
Shares11,700
Max PriceUS$4.22
BuyUS$447,14507 Oct 19
Daniel Quintanilla
EntityIndividual
Role
Member of the Board of Directors
Director
Shares100,000
Max PriceUS$4.47
SellUS$222,52907 Oct 19
GMT Capital Corp.
EntityCompany
Shares50,300
Max PriceUS$4.42
SellUS$216,37904 Oct 19
GMT Capital Corp.
EntityCompany
Shares50,000
Max PriceUS$4.33
SellUS$1,247,55924 Sep 19
GMT Capital Corp.
EntityCompany
Shares250,000
Max PriceUS$4.99
SellUS$48,90424 Sep 19
Thomas Claugus
EntityIndividual
Shares9,800
Max PriceUS$4.99
BuyUS$26,30016 Sep 19
Chi-Yen Lei
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development & Strategy
Shares5,000
Max PriceUS$5.26
BuyUS$113,99712 Sep 19
Peter Gerald Kukielski
EntityIndividual
Role
Chief Executive Officer
Interim President
Shares25,000
Max PriceUS$4.56
SellUS$1,361,20110 Sep 19
GMT Capital Corp.
EntityCompany
Shares300,000
Max PriceUS$4.54
SellUS$53,08710 Sep 19
Thomas Claugus
EntityIndividual
Shares11,700
Max PriceUS$4.54
SellUS$51,50606 Sep 19
Thomas Claugus
EntityIndividual
Shares11,700
Max PriceUS$4.40
SellUS$1,320,66606 Sep 19
GMT Capital Corp.
EntityCompany
Shares300,000
Max PriceUS$4.40
BuyUS$3,98428 Aug 19
Waterton Global Resource Management
EntityCompany
Shares1,000
Max PriceUS$3.98
BuyUS$608,27226 Aug 19
Waterton Global Resource Management
EntityCompany
Shares150,000
Max PriceUS$4.06
BuyUS$578,30520 Aug 19
Waterton Global Resource Management
EntityCompany
Shares135,654
Max PriceUS$4.26
BuyUS$2,572,83115 Aug 19
Waterton Global Resource Management
EntityCompany
Shares575,779
Max PriceUS$4.49
SellUS$46,60208 Aug 19
Thomas Claugus
EntityIndividual
Shares9,800
Max PriceUS$4.76
SellUS$1,188,83708 Aug 19
GMT Capital Corp.
EntityCompany
Shares250,000
Max PriceUS$4.76
BuyUS$9,187,13606 Aug 19
Waterton Global Resource Management
EntityCompany
Shares1,777,613
Max PriceUS$5.23
SellUS$50,44530 Jul 19
Thomas Claugus
EntityIndividual
Shares7,800
Max PriceUS$6.47
SellUS$1,293,46130 Jul 19
GMT Capital Corp.
EntityCompany
Shares200,000
Max PriceUS$6.47
SellUS$655,15325 Jul 19
GMT Capital Corp.
EntityCompany
Shares95,000
Max PriceUS$6.90
SellUS$49,51923 Jul 19
Thomas Claugus
EntityIndividual
Shares7,100
Max PriceUS$6.97
SellUS$1,268,73523 Jul 19
GMT Capital Corp.
EntityCompany
Shares181,910
Max PriceUS$6.97
SellUS$13,09416 Jul 19
Thomas Claugus
EntityIndividual
Shares2,000
Max PriceUS$6.55
SellUS$333,16616 Jul 19
GMT Capital Corp.
EntityCompany
Shares50,890
Max PriceUS$6.55
SellUS$36,69815 Jul 19
Thomas Claugus
EntityIndividual
Shares5,800
Max PriceUS$6.33
SellUS$944,02015 Jul 19
GMT Capital Corp.
EntityCompany
Shares149,200
Max PriceUS$6.33
BuyUS$6,525,37215 Jul 19
Waterton Global Resource Management
EntityCompany
Shares1,000,000
Max PriceUS$6.53
SellUS$28,44510 Jul 19
Thomas Claugus
EntityIndividual
Shares4,400
Max PriceUS$6.46
SellUS$733,09210 Jul 19
GMT Capital Corp.
EntityCompany
Shares113,400
Max PriceUS$6.46
SellUS$547,95309 Jul 19
GMT Capital Corp.
EntityCompany
Shares86,600
Max PriceUS$6.33
SellUS$21,51309 Jul 19
Thomas Claugus
EntityIndividual
Shares3,400
Max PriceUS$6.33
SellUS$55,46003 Jul 19
Thomas Claugus
EntityIndividual
Shares7,800
Max PriceUS$7.11
SellUS$1,422,05603 Jul 19
GMT Capital Corp.
EntityCompany
Shares200,000
Max PriceUS$7.11
BuyUS$2,530,49827 May 19
Waterton Global Resource Management
EntityCompany
Shares402,800
Max PriceUS$6.42
BuyUS$11,353,75621 May 19
Waterton Global Resource Management
EntityCompany
Shares1,663,781
Max PriceUS$6.85
BuyUS$74,47014 May 19
Chi-Yen Lei
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development & Strategy
Shares11,000
Max PriceUS$6.77
BuyUS$104,17213 May 19
David Smith
EntityIndividual
Shares14,000
Max PriceUS$7.46
SellUS$100,47206 May 19
Thomas Claugus
EntityIndividual
Shares11,600
Max PriceUS$8.66
SellUS$2,598,40506 May 19
GMT Capital Corp.
EntityCompany
Shares300,000
Max PriceUS$8.66
SellUS$4,194,30322 Apr 19
GMT Capital Corp.
EntityCompany
Shares450,000
Max PriceUS$9.32
SellUS$162,18022 Apr 19
Thomas Claugus
EntityIndividual
Shares17,400
Max PriceUS$9.32
SellUS$1,515,16027 Mar 19
GMT Capital Corp.
EntityCompany
Shares166,200
Max PriceUS$9.12
BuyUS$2,193,97726 Mar 19
Waterton Global Resource Management
EntityCompany
Shares243,259
Max PriceUS$9.02
BuyUS$101,53021 Mar 19
Chi-Yen Lei
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development & Strategy
Shares11,000
Max PriceUS$9.23
SellUS$56,52205 Mar 19
Thomas Claugus
EntityIndividual
Shares6,200
Max PriceUS$9.12
SellUS$1,458,63805 Mar 19
GMT Capital Corp.
EntityCompany
Shares160,000
Max PriceUS$9.12
BuyUS$88,45001 Feb 19
Waterton Global Resource Management
EntityCompany
Shares12,200
Max PriceUS$7.25
BuyUS$2,121,84722 Jan 19
Waterton Global Resource Management
EntityCompany
Shares289,506
Max PriceUS$7.33
BuyUS$378,62918 Jan 19
Waterton Global Resource Management
EntityCompany
Shares39,300
Max PriceUS$9.63
BuyUS$222,51518 Jan 19
Peter Gerald Kukielski
EntityIndividual
Role
Chief Executive Officer
Interim President
Shares25,000
Max PriceUS$8.90
BuyUS$3,254,79007 Jan 19
Waterton Global Resource Management
EntityCompany
Shares525,000
Max PriceUS$6.20
BuyUS$28,70202 Jan 19
Thomas Claugus
EntityIndividual
Shares4,500
Max PriceUS$6.38
BuyUS$590,07102 Jan 19
GMT Capital Corp.
EntityCompany
Shares92,514
Max PriceUS$6.38
BuyUS$9,207,12426 Dec 18
Waterton Global Resource Management
EntityCompany
Shares1,511,177
Max PriceUS$6.42
BuyUS$32,07926 Dec 18
Thomas Claugus
EntityIndividual
Shares5,200
Max PriceUS$6.17
BuyUS$663,08126 Dec 18
GMT Capital Corp.
EntityCompany
Shares107,486
Max PriceUS$6.17
BuyUS$17,651,40919 Dec 18
Waterton Global Resource Management
EntityCompany
Shares2,835,459
Max PriceUS$6.33
BuyUS$8,364,85517 Dec 18
Waterton Global Resource Management
EntityCompany
Shares994,040
Max PriceUS$8.44
BuyUS$23,320,20311 Dec 18
Waterton Global Resource Management
EntityCompany
Shares3,621,045
Max PriceUS$6.55
BuyUS$3,254,37811 Dec 18
GMT Capital Corp.
EntityCompany
Shares500,000
Max PriceUS$6.51
BuyUS$158,81411 Dec 18
Thomas Claugus
EntityIndividual
Shares24,400
Max PriceUS$6.51
BuyUS$121,48404 Dec 18
Thomas Claugus
EntityIndividual
Shares17,000
Max PriceUS$7.15
BuyUS$2,501,13804 Dec 18
GMT Capital Corp.
EntityCompany
Shares350,000
Max PriceUS$7.15
BuyUS$18,660,76213 Nov 18
Waterton Global Resource Management
EntityCompany
Shares3,271,701
Max PriceUS$6.66
BuyUS$3,033,36805 Nov 18
GMT Capital Corp.
EntityCompany
Shares500,000
Max PriceUS$6.07
BuyUS$148,02805 Nov 18
Thomas Claugus
EntityIndividual
Shares24,400
Max PriceUS$6.07
BuyUS$4,879,05124 Oct 18
Waterton Global Resource Management
EntityCompany
Shares859,300
Max PriceUS$5.85

Ownership Breakdown


Management Team

  • Peter Gerald Kukielski (62yo)

    Interim President

    • Tenure: 0.3yrs
  • Jon Douglas (57yo)

    VP & Treasurer

    • Tenure: 4.8yrs
  • David Bryson

    Senior VP & CFO

    • Tenure: 11.2yrs
    • Compensation: US$1.83m
  • Cashel Meagher

    Senior VP & COO

    • Tenure: 3.8yrs
    • Compensation: US$2.35m
  • Patrick Donnelly

    VP & General Counsel

    • Tenure: 5.3yrs
    • Compensation: US$1.45m
  • Candace Brûlé

    Director of Investor Relations

    • Tenure: 0yrs
  • Eugene Lei

    Senior Vice President of Corporate Development & Strategy

    • Tenure: 2.8yrs
    • Compensation: US$1.54m
  • Scott Brubacher

    Director of Corporate Communications

    • Tenure: 0yrs
  • Olivier Tavchandjian

    Vice President of Exploration & Geology

    • Tenure: 0yrs

Board Members

  • Steve Lang (63yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Alan Hibben (66yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$348.95k
  • Peter Gerald Kukielski (62yo)

    Interim President

    • Tenure: 0.3yrs
  • Carin Knickel (63yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$202.51k
  • Colin Osborne (54yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$121.57k
  • Igor Alcides Gonzáles Galindo (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$197.93k
  • Sarah Kavanagh (62yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$222.93k
  • Carol Banducci (60yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$179.33k
  • Daniel Quintanilla (45yo)

    Director

    • Tenure: 0.4yrs
  • Rick Howes (61yo)

    Director

    • Tenure: 0.4yrs

Company Information

Hudbay Minerals Inc.'s company bio, 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$1.233b
  • Shares outstanding: 261.27m
  • 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

Biography

Hudbay Minerals Inc., an integrated 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.