Hemlo Mining Corp. Fundamental Analysis (TSX: HMMC.TO)
Hemlo Mining Corp. (TSX: HMMC.TO) shows weak financial fundamentals with a PE ratio of 241.78, profit margin of -7.63%, and ROE of -5.09%. The company generates $0.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.3/100 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
ModerateHMMC.TO shows steady but slowing expansion.
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 241.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HMMC.TO's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values Hemlo Mining Corp. at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.97 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 $-7.63 as profit after all expenses.
Operating Margin
Core operations generate 29.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.09 in profit for every $100 of shareholder equity.
ROA
Hemlo Mining Corp. generates $-0.83 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 $88.90M, reflecting robust business health.
Free Cash Flow
Hemlo Mining Corp. generates strong free cash flow of $50.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.17 in free cash annually.
FCF Yield
HMMC.TO converts 3.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
241.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How HMMC.TO Stacks Against Its Sector Peers
| Metric | HMMC.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 241.78 | 27.38 | Worse (Expensive) |
| ROE | -5.09% | 967.00% | Weak |
| Net Margin | -7.63% | -1512.00% (disorted) | Weak |
| Debt/Equity | 0.27 | 0.64 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 3.17 | Neutral |
| ROA | -0.83% | 554.00% | Weak |
HMMC.TO outperforms its industry in 1 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
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value