Hudbay Minerals Inc.
Hudbay Minerals Inc. Fundamental Analysis
Hudbay Minerals Inc. (HBM) shows strong financial fundamentals with a PE ratio of 18.20, profit margin of 25.75%, and ROE of 19.30%. The company generates $2.2B in annual revenue with strong year-over-year growth of 19.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HBM's fundamental strength across five key dimensions:
Efficiency Score
WeakHBM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHBM trades at attractive valuation levels.
Growth Score
ModerateHBM shows steady but slowing expansion.
Financial Health Score
ModerateHBM shows balanced financial health with some risks.
Profitability Score
ExcellentHBM achieves industry-leading margins.
Key Financial Metrics
Is HBM Expensive or Cheap?
P/E Ratio
HBM trades at 18.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HBM's PEG of 0.75 indicates potential undervaluation.
Price to Book
The market values Hudbay Minerals Inc. at 3.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.00 times EBITDA. This is generally considered low.
How Well Does HBM Make Money?
Net Profit Margin
For every $100 in sales, Hudbay Minerals Inc. keeps $25.75 as profit after all expenses.
Operating Margin
Core operations generate 41.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.30 in profit for every $100 of shareholder equity.
ROA
Hudbay Minerals Inc. generates $9.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hudbay Minerals Inc. generates strong operating cash flow of $684.81M, reflecting robust business health.
Free Cash Flow
Hudbay Minerals Inc. produces free cash flow of $214.25M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.54 in free cash annually.
FCF Yield
HBM converts 2.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How HBM Stacks Against Its Sector Peers
| Metric | HBM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.20 | 27.01 | Better (Cheaper) |
| ROE | 19.30% | 949.00% | Weak |
| Net Margin | 25.75% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.34 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 0.95 | 4.42 | Weak Liquidity |
| ROA | 9.18% | -6411.00% (disorted) | Weak |
HBM outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hudbay Minerals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.26%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
115.47%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
48.61%
Industry Style: Cyclical, Commodity, Value
High Growth