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HOC

Hochschild Mining LSE:HOC Stock Report

Last Price

UK£0.95

Market Cap

UK£490.2m

7D

-9.1%

1Y

-40.8%

Updated

03 Jul, 2022

Data

Company Financials +
HOC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Hochschild Mining
Historical stock prices
Current Share PriceUK£0.95
52 Week HighUK£1.76
52 Week LowUK£0.68
Beta1.27
1 Month Change-14.82%
3 Month Change-28.65%
1 Year Change-40.82%
3 Year Change-50.52%
5 Year Change-62.54%
Change since IPO-73.13%

Recent News & Updates

Mar 14
Hochschild Mining plc (LON:HOC) Shares Could Be 31% Below Their Intrinsic Value Estimate

Hochschild Mining plc (LON:HOC) Shares Could Be 31% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Hochschild Mining plc ( LON:HOC ) by projecting...

Shareholder Returns

HOCGB Metals and MiningGB Market
7D-9.1%-4.4%-1.1%
1Y-40.8%-13.2%-9.7%

Return vs Industry: HOC underperformed the UK Metals and Mining industry which returned -13.2% over the past year.

Return vs Market: HOC underperformed the UK Market which returned -9.7% over the past year.

Price Volatility

Is HOC's price volatile compared to industry and market?
HOC volatility
HOC Average Weekly Movement6.2%
Metals and Mining Industry Average Movement7.7%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.6%
10% least volatile stocks in GB Market2.8%

Stable Share Price: HOC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HOC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19113,663Ignacio 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. It holds 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. The company also holds a 51% interest in the San Jose silver/gold mine located in Argentina.

Hochschild Mining Fundamentals Summary

How do Hochschild Mining's earnings and revenue compare to its market cap?
HOC fundamental statistics
Market CapUS$589.76m
Earnings (TTM)US$76.93m
Revenue (TTM)US$811.39m

7.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOC income statement (TTM)
RevenueUS$811.39m
Cost of RevenueUS$486.32m
Gross ProfitUS$325.07m
Other ExpensesUS$248.13m
EarningsUS$76.93m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin40.06%
Net Profit Margin9.48%
Debt/Equity Ratio39.6%

How did HOC perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

29%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HOC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HOC?

Other financial metrics that can be useful for relative valuation.

HOC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA1.7x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does HOC's PE Ratio compare to its peers?

HOC PE Ratio vs Peers
The above table shows the PE ratio for HOC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.1x
PAF Pan African Resources
5.8x7.7%UK£384.5m
CEY Centamin
10.6x6.2%UK£891.5m
POLY Polymetal International
1.2x15.3%UK£885.7m
AAU Ariana Resources
10.8x-1.3%UK£41.6m
HOC Hochschild Mining
7.7x8.6%UK£490.2m

Price-To-Earnings vs Peers: HOC is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

How does HOC's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

Price-To-Earnings vs Industry: HOC is expensive based on its Price-To-Earnings Ratio (7.7x) compared to the UK Metals and Mining industry average (5.8x)


Price to Earnings Ratio vs Fair Ratio

What is HOC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HOC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio12.1x

Price-To-Earnings vs Fair Ratio: HOC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.1x).


Share Price vs Fair Value

What is the Fair Price of HOC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HOC (£0.95) is trading above our estimate of fair value (£0.6)

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


Price to Earnings Growth Ratio

PEG Ratio: HOC is good value based on its PEG Ratio (0.9x)


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Future Growth

How is Hochschild Mining forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOC's forecast earnings growth (8.6% per year) is above the savings rate (0.9%).

Earnings vs Market: HOC's earnings (8.6% per year) are forecast to grow slower than the UK market (10.9% per year).

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

Revenue vs Market: HOC's revenue (0.2% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: HOC's revenue (0.2% 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 (18%).


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Past Performance

How has Hochschild Mining performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


4.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HOC has high quality earnings.

Growing Profit Margin: HOC's current net profit margins (9.5%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: HOC has become profitable over the past 5 years, growing earnings by 4.5% per year.

Accelerating Growth: HOC's earnings growth over the past year (407.4%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: HOC earnings growth over the past year (407.4%) exceeded the Metals and Mining industry 42.5%.


Return on Equity

High ROE: HOC's Return on Equity (9.4%) is considered low.


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Financial Health

How is Hochschild Mining's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HOC's short term assets ($519.8M) exceed its short term liabilities ($188.4M).

Long Term Liabilities: HOC's short term assets ($519.8M) exceed its long term liabilities ($506.9M).


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 41.2% to 39.6% over the past 5 years.

Debt Coverage: HOC's debt is well covered by operating cash flow (94.7%).

Interest Coverage: HOC's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HOC's dividend (3.74%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: HOC's dividend (3.74%) is low compared to the top 25% of dividend payers in the UK market (5.29%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.6%), HOC's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.7%), HOC's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

8.9yrs

Average management tenure


CEO

Ignacio Bustamante (50 yo)

12.25yrs

Tenure

US$1,995,000

Compensation

Mr. Ignacio Bustamante serves as a Non-Executive Director at Aclara Resources Inc. since October 15, 2021. He has been the Chief Executive Officer at Hochschild Mining PLC since April 2010. Mr. Bustamante...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD2.00M) is above average for companies of similar size in the UK market ($USD1.06M).

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 (8.9 years average tenure).


Board Members

Experienced Board: HOC's board of directors are considered experienced (5.7 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.


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£490.237m
  • 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 Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.