Hudbay Minerals Inc.

NYSE:HBM Stock Report

Market Cap: US$3.6b

Hudbay Minerals Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HBM ($9.12) is trading above our estimate of fair value ($7.01)

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

Key Valuation Metric

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

Key metric: As HBM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HBM. This is calculated by dividing HBM's market cap by their current earnings.
What is HBM's PE Ratio?
PE Ratio41.6x
EarningsUS$86.25m
Market CapUS$3.59b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HBM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average68.6x
MTRN Materion
32.7x27.4%US$2.4b
GSM Ferroglobe
21.2x49.4%US$858.6m
EUBG Entrepreneur Universe Bright Group
196.3xn/aUS$362.2m
IDR Idaho Strategic Resources
24.2x30.3%US$161.9m
HBM Hudbay Minerals
41.6x28.6%US$5.0b

Price-To-Earnings vs Peers: HBM is good value based on its Price-To-Earnings Ratio (41.6x) compared to the peer average (68.6x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.5xn/aUS$5.00m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
ZCRM.F Zincore Metals
0.5xn/aUS$852.33k
HBM 41.6xIndustry Avg. 19.3xNo. of Companies6PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HBM is expensive based on its Price-To-Earnings Ratio (41.6x) compared to the US Metals and Mining industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is HBM'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.

HBM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41.6x
Fair PE Ratio27.1x

Price-To-Earnings vs Fair Ratio: HBM is expensive based on its Price-To-Earnings Ratio (41.6x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HBM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$9.12
US$11.48
+25.9%
5.6%US$12.88US$10.70n/a15
Nov ’25US$9.06
US$11.61
+28.2%
5.1%US$13.06US$10.87n/a15
Oct ’25US$9.34
US$11.52
+23.4%
6.0%US$13.29US$10.20n/a15
Sep ’25US$8.16
US$11.48
+40.7%
7.9%US$13.34US$10.20n/a15
Aug ’25US$7.81
US$11.77
+50.7%
8.3%US$13.81US$10.22n/a16
Jul ’25US$9.11
US$11.57
+27.0%
8.9%US$13.87US$9.50n/a16
Jun ’25US$9.76
US$11.12
+14.0%
11.8%US$13.14US$7.35n/a16
May ’25US$8.33
US$9.14
+9.8%
9.4%US$10.24US$7.37n/a15
Apr ’25US$6.98
US$7.89
+13.0%
9.3%US$9.23US$6.27n/a15
Mar ’25US$6.08
US$7.53
+23.9%
10.9%US$8.88US$6.29n/a14
Feb ’25US$5.64
US$7.37
+30.7%
10.3%US$8.92US$6.34n/a14
Jan ’25US$5.52
US$7.02
+27.1%
11.9%US$8.43US$4.97n/a14
Dec ’24US$4.86
US$6.94
+42.7%
11.8%US$8.43US$4.73n/a15
Nov ’24US$4.37
US$7.15
+63.5%
9.9%US$8.43US$5.48US$9.0615
Oct ’24US$4.87
US$7.40
+51.9%
7.5%US$8.46US$5.94US$9.3415
Sep ’24US$5.00
US$7.31
+46.1%
9.3%US$8.55US$5.90US$8.1617
Aug ’24US$5.84
US$7.57
+29.6%
10.1%US$8.73US$5.51US$7.8117
Jul ’24US$4.80
US$7.53
+56.8%
9.5%US$8.58US$5.89US$9.1117
Jun ’24US$4.42
US$7.61
+72.1%
10.1%US$8.58US$5.89US$9.7616
May ’24US$5.10
US$7.56
+48.3%
12.3%US$9.59US$5.92US$8.3315
Apr ’24US$5.25
US$7.15
+36.3%
18.6%US$11.09US$5.15US$6.9816
Mar ’24US$5.23
US$6.95
+32.8%
12.5%US$8.10US$5.14US$6.0816
Feb ’24US$5.77
US$7.09
+22.9%
13.2%US$8.24US$5.14US$5.6416
Jan ’24US$5.07
US$6.77
+33.4%
16.2%US$8.74US$4.37US$5.5217
Dec ’23US$5.82
US$6.59
+13.2%
15.7%US$8.74US$4.37US$4.8617
Nov ’23US$4.27
US$6.41
+50.1%
18.1%US$8.65US$4.37US$4.3717

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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