Hemlo Mining Corp. Fundamental Analysis (TSX: HMMC.TO)
Hemlo Mining Corp. (TSX: HMMC.TO) shows weak financial fundamentals with a PE ratio of 43.32, profit margin of 5.08%, and ROE of 3.84%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMMC.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakHMMC.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateHMMC.TO shows balanced valuation metrics.
Growth Score
WeakHMMC.TO faces weak or negative growth trends.
Financial Health Score
ExcellentHMMC.TO maintains a strong and stable balance sheet.
Profitability Score
WeakHMMC.TO struggles to sustain strong margins.
Key Financial Metrics
Is HMMC.TO Expensive or Cheap?
P/E Ratio
HMMC.TO trades at 43.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HMMC.TO's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Hemlo Mining Corp. at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.64 times EBITDA. This signals the market has high growth expectations.
How Well Does HMMC.TO Make Money?
Net Profit Margin
For every $100 in sales, Hemlo Mining Corp. keeps $5.08 as profit after all expenses.
Operating Margin
Core operations generate 28.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.84 in profit for every $100 of shareholder equity.
ROA
Hemlo Mining Corp. generates $0.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hemlo Mining Corp. generates strong operating cash flow of $134.55M, reflecting robust business health.
Free Cash Flow
Hemlo Mining Corp. generates strong free cash flow of $62.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
HMMC.TO converts 2.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HMMC.TO Stacks Against Its Sector Peers
| Metric | HMMC.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.32 | 27.37 | Worse (Expensive) |
| ROE | 3.84% | 1190.00% | Weak |
| Net Margin | 5.08% | 204.00% | Weak |
| Debt/Equity | 0.74 | 0.73 | Neutral |
| Current Ratio | 1.33 | 3.14 | Neutral |
| ROA | 0.94% | 2758.00% | Weak |
HMMC.TO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hemlo Mining Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
98.29%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-129.42%
Industry Style: Cyclical, Commodity, Value
Declining