TSX:HBM

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

Stable Share Price: HBM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.9%

HBM

-5.4%

CA Metals and Mining

0.5%

CA Market


1 Year Return

22.6%

HBM

46.6%

CA Metals and Mining

-1.9%

CA Market

Return vs Industry: HBM underperformed the Canadian Metals and Mining industry which returned 41.3% over the past year.

Return vs Market: HBM exceeded the Canadian Market which returned -1.2% over the past year.


Shareholder returns

HBMIndustryMarket
7 Day15.9%-5.4%0.5%
30 Day18.2%4.0%4.4%
90 Day70.0%12.2%14.5%
1 Year23.3%22.6%47.7%46.6%1.6%-1.9%
3 Year-46.0%-46.6%53.9%50.8%13.3%2.4%
5 Year-16.8%-18.2%140.7%133.5%40.7%19.1%

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?

0.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HBM (CA$5.32) is trading above our estimate of fair value (CA$0.25)

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 CA 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 (0.8x) compared to the CA Metals and Mining industry average (2.8x).


Next Steps

Future Growth

How is Hudbay Minerals forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

64.8%

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 (1.7%).

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 (8.5% per year) is forecast to grow faster than the Canadian market (6.2% per year).

High Growth Revenue: HBM's revenue (8.5% 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%).


Next Steps

Past Performance

How has Hudbay Minerals performed over the past 5 years?

-9.9%

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 9.9% 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 (-5.5%).


Return on Equity

High ROE: HBM has a negative Return on Equity (-23.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hudbay Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: HBM's short term assets ($661.7M) exceed its short term liabilities ($401.0M).

Long Term Liabilities: HBM's short term assets ($661.7M) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: HBM's debt to equity ratio (57.9%) is considered high.

Reducing Debt: HBM's debt to equity ratio has reduced from 60.1% to 57.9% 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: HBM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HBM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

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 (1.72%).

High Dividend: HBM's dividend (0.38%) is low compared to the top 25% of dividend payers in the Canadian market (5.63%).


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

  • Explore strong dividend paying companies in the Materials industry.

Management

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

4.1yrs

Average management tenure


CEO

Peter Gerald Kukielski (64 yo)

1.08yrs

Tenure

US$3,750,414

Compensation

Mr. Peter Gerald Jan Kukielski, MSc, BSc serves as President and Chief Executive Officer of Hudbay Minerals Inc. since January, 2020. He had been Interim President of Hudbay Minerals Inc. since July 2019 a ...


CEO Compensation Analysis

Compensation vs Market: Peter Gerald's total compensation ($USD2.84M) is above average for companies of similar size in the Canadian market ($USD1.54M).

Compensation vs Earnings: Insufficient data to compare Peter Gerald's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Gerald Kukielski
President1.08yrsUS$3.75m0.033%
$ 434.2k
Cashel Meagher
Senior VP & COO4.58yrsUS$2.33m0.028%
$ 375.9k
Patrick Donnelly
VP & General Counsel6.08yrsUS$1.40m0.021%
$ 277.9k
Chi-Yen Lei
Senior VP of Corporate Development & Strategy3.58yrsUS$1.63m0.045%
$ 598.5k
Steven Douglas
Senior VP & CFO0.17yrno datano data
Candace Brûlé
Director of Investor Relationsno datano datano data
Scott Brubacher
Director of Corporate Communicationsno datano datano data
Olivier Tavchandjian
Vice President of Exploration & Geologyno datano datano data
Jon Douglas
VP & Treasurer5.58yrsno data0.0056%
$ 74.0k

4.1yrs

Average Tenure

58yo

Average Age

Experienced Management: HBM's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Gerald Kukielski
President1.08yrsUS$3.75m0.033%
$ 434.2k
Stephen Lang
Independent Chairman0.83yrUS$87.02k0.025%
$ 328.9k
David Smith
Independent Director1.25yrsUS$158.27k0.0054%
$ 70.9k
Carin Knickel
Independent Director5.25yrsUS$239.09k0.010%
$ 135.8k
Colin Osborne
Independent Director2.25yrsUS$229.27k0.0096%
$ 126.5k
Igor Alcides Gonzáles Galindo
Independent Director7.08yrsUS$198.68kno data
Sarah Kavanagh
Independent Director7.08yrsUS$231.40kno data
Carol Banducci
Independent Director3.25yrsUS$244.43kno data
Daniel Quintanilla
Independent Director1.25yrsUS$151.57k0.0038%
$ 50.6k
Richard Howes
Independent Director1.25yrsUS$123.09kno data

1.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: HBM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

Ownership Breakdown

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


Top Shareholders

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$1.322b
  • 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., 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 01:00
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.