Hochschild Mining plc
Hochschild Mining plc Fundamental Analysis
Hochschild Mining plc (HCHDY) shows strong financial fundamentals with a PE ratio of 6.26, profit margin of 13.95%, and ROE of 23.54%. 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 76.4/100 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 HCHDY's fundamental strength across five key dimensions:
Efficiency Score
WeakHCHDY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCHDY trades at attractive valuation levels.
Growth Score
ModerateHCHDY shows steady but slowing expansion.
Financial Health Score
ModerateHCHDY shows balanced financial health with some risks.
Profitability Score
ModerateHCHDY maintains healthy but balanced margins.
Key Financial Metrics
Is HCHDY Expensive or Cheap?
P/E Ratio
HCHDY trades at 6.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCHDY's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Hochschild Mining plc at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.60 times EBITDA. This is generally considered low.
How Well Does HCHDY Make Money?
Net Profit Margin
For every $100 in sales, Hochschild Mining plc keeps $13.95 as profit after all expenses.
Operating Margin
Core operations generate 26.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.54 in profit for every $100 of shareholder equity.
ROA
Hochschild Mining plc generates $8.49 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 $372.34M, reflecting robust business health.
Free Cash Flow
Hochschild Mining plc generates strong free cash flow of $164.13M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.79 in free cash annually.
FCF Yield
HCHDY converts 17.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
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
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How HCHDY Stacks Against Its Sector Peers
| Metric | HCHDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.26 | 27.01 | Better (Cheaper) |
| ROE | 23.54% | 949.00% | Weak |
| Net Margin | 13.95% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.50 | 0.48 | Neutral |
| Current Ratio | 0.75 | 4.42 | Weak Liquidity |
| ROA | 8.49% | -6411.00% (disorted) | Weak |
HCHDY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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