Hochschild Mining
Market Cap
UK£1.1b
Last Updated
2021/04/16 19:03 UTC
Data Sources
Company Financials +
Executive Summary
Hochschild Mining plc, a precious metals company, explores for, mines, processes, and sells gold and silver in the Americas. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Hochschild Mining's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HOC is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: HOC's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.
Market Performance
7 Day Return
1.1%
HOC
6.3%
GB Metals and Mining
1.6%
GB Market
1 Year Return
70.7%
HOC
71.9%
GB Metals and Mining
23.3%
GB Market
Return vs Industry: HOC underperformed the UK Metals and Mining industry which returned 71.9% over the past year.
Return vs Market: HOC exceeded the UK Market which returned 23.3% over the past year.
Shareholder returns
| HOC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 6.3% | 1.6% |
| 30 Day | 0.1% | 10.1% | 4.9% |
| 90 Day | 7.6% | 6.8% | 4.0% |
| 1 Year | 72.8%70.7% | 80.3%71.9% | 30.4%23.3% |
| 3 Year | -1.7%-5.9% | 66.3%38.6% | 17.3%2.6% |
| 5 Year | 53.4%45.0% | 218.8%144.5% | 48.5%19.8% |
Long-Term Price Volatility Vs. Market
How volatile is Hochschild Mining's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Estimating The Fair Value Of Hochschild Mining plc (LON:HOC)3 weeks ago | Simply Wall St
Returns On Capital - An Important Metric For Hochschild Mining (LON:HOC)1 month ago | Simply Wall St
CEO & Director Ignacio Bustamante Just Sold A Bunch Of Shares In Hochschild Mining plc (LON:HOC)Valuation
Is Hochschild Mining undervalued compared to its fair value and its price relative to the market?
19.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HOC (£2.07) is trading below our estimate of fair value (£2.58)
Significantly Below Fair Value: HOC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HOC is poor value based on its PE Ratio (96.7x) compared to the GB Metals and Mining industry average (12.7x).
PE vs Market: HOC is poor value based on its PE Ratio (96.7x) compared to the UK market (26.2x).
Price to Earnings Growth Ratio
PEG Ratio: HOC is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: HOC is overvalued based on its PB Ratio (2.5x) compared to the GB Metals and Mining industry average (2.1x).
Future Growth
How is Hochschild Mining forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
37.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HOC's forecast earnings growth (37.1% per year) is above the savings rate (1%).
Earnings vs Market: HOC's earnings (37.1% per year) are forecast to grow faster than the UK market (18% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HOC's revenue (7.9% per year) is forecast to grow faster than the UK market (5.8% per year).
High Growth Revenue: HOC's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HOC's Return on Equity is forecast to be low in 3 years time (12.7%).
Past Performance
How has Hochschild Mining performed over the past 5 years?
57.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HOC has a large one-off loss of $23.7M impacting its December 31 2020 financial results.
Growing Profit Margin: HOC's current net profit margins (2.4%) are lower than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: HOC has become profitable over the past 5 years, growing earnings by 57.6% per year.
Accelerating Growth: HOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HOC had negative earnings growth (-47.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (5.8%).
Return on Equity
High ROE: HOC's Return on Equity (2.5%) is considered low.
Financial Health
How is Hochschild Mining's financial position?
Financial Position Analysis
Short Term Liabilities: HOC's short term assets ($352.5M) exceed its short term liabilities ($173.4M).
Long Term Liabilities: HOC's short term assets ($352.5M) do not cover its long term liabilities ($386.6M).
Debt to Equity History and Analysis
Debt Level: HOC's debt to equity ratio (26.1%) is considered satisfactory.
Reducing Debt: HOC's debt to equity ratio has reduced from 59.2% to 26.1% over the past 5 years.
Debt Coverage: HOC's debt is well covered by operating cash flow (92.9%).
Interest Coverage: HOC's interest payments on its debt are well covered by EBIT (15.4x coverage).
Balance Sheet
Dividend
What is Hochschild Mining current dividend yield, its reliability and sustainability?
1.64%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HOC's dividend (1.64%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).
High Dividend: HOC's dividend (1.64%) is low compared to the top 25% of dividend payers in the UK market (4.13%).
Stability and Growth of Payments
Stable Dividend: HOC's dividend payments have been volatile in the past 10 years.
Growing Dividend: HOC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (214.7%), HOC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HOC's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.5yrs
Average management tenure
CEO
Ignacio Bustamante (48 yo)
11yrs
Tenure
US$3,910,000
Compensation
Mr. Ignacio Bustamante has been the Chief Executive Officer at Hochschild Mining PLC since April 2010. Mr. Bustamante has been President and Chief Executive Officer of Andina Minerals Inc. since January 14...
CEO Compensation Analysis
Compensation vs Market: Ignacio's total compensation ($USD3.91M) is above average for companies of similar size in the UK market ($USD1.46M).
Compensation vs Earnings: Ignacio's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HOC's management team is seasoned and experienced (9.5 years average tenure).
Board Members
Experienced Board: HOC's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HOC insiders have only sold shares 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
Hochschild Mining plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hochschild Mining plc
- Ticker: HOC
- Exchange: LSE
- Founded: 1911
- Industry: Silver
- Sector: Materials
- Market Cap: UK£1.064b
- Shares outstanding: 513.88m
- Website: https://www.hochschildmining.com
Number of Employees
Location
- Hochschild Mining plc
- 17 Cavendish Square
- London
- Greater London
- W1G 0PH
- United Kingdom
Listings
Biography
Hochschild Mining plc, a precious metals company, explores for, mines, processes, and sells gold and silver in the Americas. It also offers doré and concentrates. The company holds a 100% interests in the ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 19:03 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.