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HOC

Hochschild MiningLSE:HOC Stock Report

Last Price

UK£1.18

Market Cap

UK£607.4m

7D

-1.0%

1Y

-42.6%

Updated

22 Jan, 2022

Data

Company Financials +
HOC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends3/6

HOC Stock Overview

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of gold and silver in the Americas.

Hochschild Mining Competitors

BHP Group

ASX:BHP

AU$231.1b

Rio Tinto Group

LSE:RIO

UK£89.5b

Glencore

LSE:GLEN

UK£53.7b

Freeport-McMoRan

NYSE:FCX

US$60.2b

Price History & Performance

Summary of all time highs, changes and price drops for Hochschild Mining
Historical stock prices
Current Share PriceUK£1.18
52 Week HighUK£2.74
52 Week LowUK£0.68
Beta1.26
1 Month Change-8.51%
3 Month Change-21.31%
1 Year Change-42.62%
3 Year Change-31.56%
5 Year Change-49.87%
Change since IPO-66.70%

Recent News & Updates

Nov 24
Hochschild Mining (LON:HOC) Could Easily Take On More Debt

Hochschild Mining (LON:HOC) Could Easily Take On More Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Nov 06
Returns At Hochschild Mining (LON:HOC) Are On The Way Up

Returns At Hochschild Mining (LON:HOC) Are On The Way Up

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Sep 23
Hochschild Mining plc's (LON:HOC) Intrinsic Value Is Potentially 94% Above Its Share Price

Hochschild Mining plc's (LON:HOC) Intrinsic Value Is Potentially 94% Above Its Share Price

Does the September share price for Hochschild Mining plc ( LON:HOC ) reflect what it's really worth? Today, we will...

Shareholder Returns

HOCGB Metals and MiningGB Market
7D-1.0%0.7%-1.3%
1Y-42.6%2.6%7.8%

Return vs Industry: HOC underperformed the UK Metals and Mining industry which returned 2.6% over the past year.

Return vs Market: HOC underperformed the UK Market which returned 7.8% over the past year.

Price Volatility

Is HOC's price volatile compared to industry and market?
HOC volatility
HOC Average Weekly Movement10.9%
Metals and Mining Industry Average Movement7.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: HOC is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: HOC's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19113,430Ignacio Bustamantehttps://www.hochschildmining.com

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of gold and silver in the Americas. The company holds a 100% interests in the Inmaculada gold/silver underground operation and Pallancata silver/gold property, which are located in the Department of Ayacucho in southern Peru; and Arcata, an underground operation located in the Department of Arequipa in southern Peru, as well as a 51% interest in the San Jose silver/gold mine is located in Argentina. In addition, the company has a portfolio of projects in various stages of development located in Peru, Argentina, Mexico, the United States, and Chile.

Hochschild Mining Fundamentals Summary

How do Hochschild Mining's earnings and revenue compare to its market cap?
HOC fundamental statistics
Market CapUS$823.58m
Earnings (TTM)US$57.84m
Revenue (TTM)US$784.55m

14.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOC income statement (TTM)
RevenueUS$784.55m
Cost of RevenueUS$448.38m
Gross ProfitUS$336.16m
ExpensesUS$278.32m
EarningsUS$57.84m

Dividends

2.4%

Current Dividend Yield

42%

Payout Ratio

Valuation

Is Hochschild Mining undervalued compared to its fair value and its price relative to the market?

14.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HOC (£1.18) is trading above our estimate of fair value (£1.13)

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


Price To Earnings Ratio

PE vs Industry: HOC is poor value based on its PE Ratio (14.2x) compared to the UK Metals and Mining industry average (8.2x).

PE vs Market: HOC is good value based on its PE Ratio (14.2x) compared to the UK market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HOC is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: HOC is good value based on its PB Ratio (1.1x) compared to the GB Metals and Mining industry average (1.9x).


Future Growth

How is Hochschild Mining forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOC's forecast earnings growth (9.6% per year) is above the savings rate (0.9%).

Earnings vs Market: HOC's earnings (9.6% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: HOC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HOC's revenue is expected to decline over the next 3 years (-6.4% per year).

High Growth Revenue: HOC's revenue is forecast to decline over the next 3 years (-6.4% 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 (11.9%).


Past Performance

How has Hochschild Mining performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOC has a large one-off loss of $38.3M impacting its June 30 2021 financial results.

Growing Profit Margin: HOC's current net profit margins (7.4%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: HOC has become profitable over the past 5 years, growing earnings by 30.6% per year.

Accelerating Growth: HOC's earnings growth over the past year (714%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: HOC earnings growth over the past year (714%) exceeded the Metals and Mining industry 150.4%.


Return on Equity

High ROE: HOC's Return on Equity (7.1%) is considered low.


Financial Health

How is Hochschild Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HOC's short term assets ($392.7M) exceed its short term liabilities ($195.2M).

Long Term Liabilities: HOC's short term assets ($392.7M) exceed its long term liabilities ($376.7M).


Debt to Equity History and Analysis

Debt Level: HOC has more cash than its total debt.

Reducing Debt: HOC's debt to equity ratio has reduced from 50.5% to 25.6% over the past 5 years.

Debt Coverage: HOC's debt is well covered by operating cash flow (142.2%).

Interest Coverage: HOC's interest payments on its debt are well covered by EBIT (25.6x coverage).


Balance Sheet


Dividend

What is Hochschild Mining current dividend yield, its reliability and sustainability?

2.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOC's dividend (2.43%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: HOC's dividend (2.43%) is low compared to the top 25% of dividend payers in the UK market (4.09%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), HOC's dividend payments are 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 (38.2% payout ratio).


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Ignacio Bustamante (49 yo)

11.75yrs

Tenure

US$1,933,000

Compensation

Mr. Ignacio Bustamante serves as Non-Executive Director at Aclara Resources Inc. since December 10, 2021. He has been the Chief Executive Officer at Hochschild Mining PLC since April 2010. Mr. Bustamante h...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD1.93M) is above average for companies of similar size in the UK market ($USD1.08M).

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 (7.9 years average tenure).


Board Members

Experienced Board: HOC's board of directors are considered experienced (6 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

Hochschild Mining plc's employee growth, exchange listings and data sources


Key Information

  • Name: Hochschild Mining plc
  • Ticker: HOC
  • Exchange: LSE
  • Founded: 1911
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: UK£607.401m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 19:00
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
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.