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HL

Hecla MiningNYSE:HL Stock Report

Market Cap

US$3.0b

7D

-10.4%

1Y

0.2%

Updated

01 Dec, 2021

Data

Company Financials +
HL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends2/6

HL Stock Overview

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally.

Hecla Mining Competitors

BHP Group

ASX:BHP

AU$199.2b

Vale

BOVESPA:VALE3

R$342.2b

Newmont

NYSE:NEM

US$43.9b

Barrick Gold

TSX:ABX

CA$43.2b

Price History & Performance

Summary of all time highs, changes and price drops for Hecla Mining
Historical stock prices
Current Share PriceUS$5.23
52 Week HighUS$9.44
52 Week LowUS$4.66
Beta2.16
1 Month Change-13.41%
3 Month Change-14.82%
1 Year Change0.19%
3 Year Change120.68%
5 Year Change-18.28%
Change since IPO-62.97%

Recent News & Updates

Oct 26
Is Hecla Mining Company (NYSE:HL) Expensive For A Reason? A Look At Its Intrinsic Value

Is Hecla Mining Company (NYSE:HL) Expensive For A Reason? A Look At Its Intrinsic Value

Today we will run through one way of estimating the intrinsic value of Hecla Mining Company ( NYSE:HL ) by taking the...

Oct 12

Hecla Mining: Further Weakness Should Present A Buying Opportunity

In a sector where there's a dearth of Tier-1 jurisdictions, and just as few high-margin producers, Hecla continues to be one of a kind. The company recently pulled its cost guidance down to $10.00/oz, setting the company up for industry-leading AISC margins of 60% plus in FY2021. However, with Hecla trading at a large premium to net asset value despite less diversification than other Tier-1 peers, I think there is better value elsewhere currently. Having said that, if the stock were to drop below $4.75 per share closer to its technical support area, I would consider starting a position in the stock.

Sep 01

Hecla Mining: Margins Up In Q2, But Tough Sequential Comps Ahead

Hecla Mining released its Q2 financial results in early August, reporting revenue of $218 million, a 31% increase year-over-year. This solid performance was driven by significantly higher metals prices offset by a slight decrease in gold ounces sold, helping the company to report $0.06 in quarterly earnings per share. However, while Hecla is the safest way to play silver given its industry-leading margins & Tier-1 jurisdictions, there isn't much of a margin of safety at current levels. So, while I would view dips below $5.00 as low-risk buying opportunities, I see much better value elsewhere in the sector currently.

Shareholder Returns

HLUS Metals and MiningUS Market
7D-10.4%-6.8%-4.9%
1Y0.2%18.1%17.8%

Return vs Industry: HL underperformed the US Metals and Mining industry which returned 18.1% over the past year.

Return vs Market: HL underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is HL's price volatile compared to industry and market?
HL volatility
HL Average Weekly Movement6.4%
Metals and Mining Industry Average Movement8.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
18911,591Phillips Bakerhttps://www.hecla-mining.com

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company offers lead, zinc, and bulk concentrates, as well as carbon materials to custom smelters, metal traders, and third-party processors; and unrefined gold and silver bullion bars to precious metals traders. It owns 100% interests in the Greens Creek mine located on Admiralty Island in southeast Alaska; the Lucky Friday mine located in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine located in the city of Durango, Mexico.

Hecla Mining Fundamentals Summary

How do Hecla Mining's earnings and revenue compare to its market cap?
HL fundamental statistics
Market CapUS$2.98b
Earnings (TTM)US$18.44m
Revenue (TTM)US$811.29m

152.7x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HL income statement (TTM)
RevenueUS$811.29m
Cost of RevenueUS$427.65m
Gross ProfitUS$383.63m
ExpensesUS$365.19m
EarningsUS$18.44m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.034
Gross Margin47.29%
Net Profit Margin2.27%
Debt/Equity Ratio29.1%

How did HL perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

80%

Payout Ratio

Valuation

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

152.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HL ($5.23) is trading above our estimate of fair value ($4)

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


Price To Earnings Ratio

PE vs Industry: HL is poor value based on its PE Ratio (152.7x) compared to the US Metals and Mining industry average (8.9x).

PE vs Market: HL is poor value based on its PE Ratio (152.7x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: HL is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: HL is good value based on its PB Ratio (1.6x) compared to the US Metals and Mining industry average (2x).


Future Growth

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

85.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HL's forecast earnings growth (85.2% per year) is above the savings rate (2%).

Earnings vs Market: HL's earnings (85.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HL's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: HL's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HL's Return on Equity is forecast to be low in 3 years time (4.1%).


Past Performance

How has Hecla Mining performed over the past 5 years?

-21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HL has a large one-off loss of $36.9M impacting its September 30 2021 financial results.

Growing Profit Margin: HL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HL has become profitable over the past 5 years, growing earnings by -21.7% per year.

Accelerating Growth: HL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (102.1%).


Return on Equity

High ROE: HL's Return on Equity (1.1%) is considered low.


Financial Health

How is Hecla Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HL's short term assets ($310.3M) exceed its short term liabilities ($126.2M).

Long Term Liabilities: HL's short term assets ($310.3M) do not cover its long term liabilities ($805.3M).


Debt to Equity History and Analysis

Debt Level: HL's net debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: HL's debt to equity ratio has reduced from 34.3% to 29.1% over the past 5 years.

Debt Coverage: HL's debt is well covered by operating cash flow (45.7%).

Interest Coverage: HL's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

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

0.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HL's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: HL's dividend (0.86%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: HL's dividend payments have been volatile in the past 10 years.

Growing Dividend: HL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.7%), HL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HL's dividends in 3 years are forecast to be well covered by earnings (41.5% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Phillips Baker (61 yo)

18.5yrs

Tenure

US$5,190,508

Compensation

Mr. Phillips S. Baker, Jr., has been the Chief Executive Officer of Hecla Mining Company since May 9, 2003 and its President since November 2001. Mr. Baker served as the Chief Financial Officer of Hecla Mi...


CEO Compensation Analysis

Compensation vs Market: Phillips's total compensation ($USD5.19M) is about average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Phillips's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HL's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: HL's board of directors are seasoned and experienced ( 10.1 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

Hecla Mining Company's employee growth, exchange listings and data sources


Key Information

  • Name: Hecla Mining Company
  • Ticker: HL
  • Exchange: NYSE
  • Founded: 1891
  • Industry: Silver
  • Sector: Materials
  • Market Cap: US$2.981b
  • Shares outstanding: 538.14m
  • Website: https://www.hecla-mining.com

Number of Employees


Location

  • Hecla Mining Company
  • 6500 North Mineral Drive
  • Suite 200
  • Coeur d'Alene
  • Idaho
  • 83815-9408
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 23:54
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
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.