Hochschild Mining plc
Hochschild Mining plc Fundamental Analysis
Hochschild Mining plc (HCHDF) shows moderate financial fundamentals with a PE ratio of 36.30, profit margin of 13.87%, and ROE of 23.22%. The company generates $1.1B in annual revenue with strong year-over-year growth of 36.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HCHDF's fundamental strength across five key dimensions:
Efficiency Score
WeakHCHDF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHCHDF shows balanced valuation metrics.
Growth Score
ModerateHCHDF shows steady but slowing expansion.
Financial Health Score
ModerateHCHDF shows balanced financial health with some risks.
Profitability Score
ModerateHCHDF maintains healthy but balanced margins.
Key Financial Metrics
Is HCHDF Expensive or Cheap?
P/E Ratio
HCHDF trades at 36.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HCHDF's PEG of 0.69 indicates potential undervaluation.
Price to Book
The market values Hochschild Mining plc at 8.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.62 times EBITDA. This signals the market has high growth expectations.
How Well Does HCHDF Make Money?
Net Profit Margin
For every $100 in sales, Hochschild Mining plc keeps $13.87 as profit after all expenses.
Operating Margin
Core operations generate 27.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.22 in profit for every $100 of shareholder equity.
ROA
Hochschild Mining plc generates $8.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hochschild Mining plc generates strong operating cash flow of $372.35M, reflecting robust business health.
Free Cash Flow
Hochschild Mining plc generates strong free cash flow of $161.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
HCHDF converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.69
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How HCHDF Stacks Against Its Sector Peers
| Metric | HCHDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.30 | 27.01 | Worse (Expensive) |
| ROE | 23.22% | 949.00% | Weak |
| Net Margin | 13.87% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.50 | 0.48 | Neutral |
| Current Ratio | 0.75 | 4.42 | Weak Liquidity |
| ROA | 8.37% | -6411.00% (disorted) | Weak |
HCHDF outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hochschild Mining plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.46%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
132.32%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
12.55%
Industry Style: Cyclical, Commodity, Value
High Growth