Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: 0.24%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 35.1
• Beta (1Y): 2.09
• Revenue Growth: 19.70%
• EPS Growth: 9.24%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Copper
• EPS (TTM): 0.27
• Shares Outstanding: 394,999,080
• 10 Day Avg. Volume: 1,907,368
• 30 Day Avg. Volume: 2,107,694
• PEG Ratio: 3.79
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.58
• Price to Cash Flow (P/CF): 3.30
• P/FCF Ratio: 5.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$15.27
• Price Target Upside: 56.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Hudbay Minerals' overall stock score reflects strong financial health and strategic growth plans, tempered by valuation concerns and mixed technical indicators. Financial stability, ambitious project developments, and recent corporate actions strengthen future prospects, but the current premium valuation and technical trends pose potential risks.

Positive Factors

Ownership Consolidation

Consolidating ownership of CM improves HBM’s attributable copper production at an attractive valuation.

Permitting Progress

HudBay has received the Air Quality Permit for Phase 1 of its Copper World project in Arizona, de-risking the project from a permitting perspective.

Production Guidance

The initial 2027 copper and gold production guides were better than expected.

Negative Factors

Volume Guidance Reduction

For 2026, HBM lowered its copper volume guidance by 9% at mid-point.

Hudbay Minerals Business Overview & Revenue Model

Company Description

Hudbay Minerals Inc. is a Canadian mining company primarily engaged in the discovery, production, and marketing of base and precious metals. Operating in the natural resources sector, the company focuses on copper, zinc, gold, and silver. With a strong emphasis on sustainability and responsible mining practices, Hudbay Minerals manages several mines and mineral projects across the Americas, leveraging its expertise in exploration, development, and operation of mining properties.

How the Company Makes Money

Hudbay Minerals generates revenue primarily through the extraction and sale of base and precious metals such as copper, zinc, gold, and silver. The company's key revenue streams are derived from its mining operations, where it explores, develops, and operates mines to produce these metals. Once extracted, the metals are sold in the global market, where prices are influenced by supply and demand dynamics, geopolitical factors, and economic trends. Hudbay also engages in long-term contracts and spot sales, contributing to its earnings. Significant partnerships with other mining companies and local stakeholders, along with operational efficiencies and cost management strategies, play a crucial role in enhancing the company's profitability.

Hudbay Minerals Financial Statement Overview

Summary

Hudbay Minerals exhibits strong revenue and cash flow growth, supported by improving profitability and a stable balance sheet. While leverage management is effective, profitability metrics such as ROE suggest opportunities for enhancement. Overall, the financial position is solid with potential for future growth.

Income Statement

Hudbay Minerals has shown a solid revenue growth with a 20.60% increase from 2022 to 2023 and a further 20.63% increase in TTM. The gross profit margin in TTM is 27.77%, indicating effective cost management. The net profit margin has improved to 4.23% in TTM, reflecting better operational efficiency. However, volatility in net income in previous years could indicate some operational risks.

Balance Sheet

The company maintains a healthy equity ratio of 46.06% in TTM, demonstrating a stable capital structure. The debt-to-equity ratio has decreased, indicating improved leverage management. However, the return on equity stands at 3.40% in TTM, suggesting room for improvement in profitability.

Cash Flow

Hudbay Minerals has achieved a substantial free cash flow growth of 64.54% from 2022 to 2023, with a strong operating cash flow to net income ratio of 7.57 in TTM. This indicates robust cash generation relative to earnings, although fluctuations in capital expenditures and financing activities may pose potential risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.04B	1.69B	1.46B	1.50B	1.09B	1.24B
	Gross Profit
566.12M	784.22M	276.89M	131.02M	39.00M	151.54M
	EBIT
392.08M	297.17M	128.05M	-63.00M	-136.18M	-17.23M
	EBITDA
752.75M	621.10M	502.54M	296.77M	267.23M	329.40M
	Net Income Common Stockholders
86.25M	66.37M	70.38M	-244.36M	-144.58M	-343.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
892.68M	250.52M	225.66M	270.99M	439.13M	396.15M
	Total Assets
2.00B	5.31B	4.33B	4.62B	4.67B	4.46B
	Total Debt
0.00	1.38B	1.25B	1.26B	1.20B	1.07B
	Net Debt
-892.68M	1.13B	1.02B	987.29M	760.05M	671.06M
	Total Liabilities
324.15M	3.11B	2.75B	3.14B	2.97B	2.61B
	Stockholders Equity
1.67B	2.10B	1.57B	1.48B	1.70B	1.85B
Cash Flow		Free Cash Flow
322.15M	195.75M	178.84M	6.38M	-121.70M	51.65M
	Operating Cash Flow
653.40M	476.85M	487.80M	383.82M	239.48M	310.86M
	Investing Cash Flow
-366.50M	-271.78M	-337.67M	-375.00M	-359.02M	-292.37M
	Financing Cash Flow
-90.33M	-182.39M	-196.30M	-175.90M	162.09M	-137.78M

Hudbay Minerals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HBM, the sentiment is Negative. The current price of 9.78 is below the 20-day moving average (MA) of 10.81, below the 50-day MA of 11.13, and below the 200-day MA of 11.68, indicating a bearish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 19.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HBM.

Hudbay Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	66 Neutral	$3.86B	35.07	3.30%	0.24%	19.70%	9.24%
LUN	61 Neutral	$9.02B	25.63	0.24%	3.52%	-2.71%	-188.94%
FM	58 Neutral	$14.14B	―	0.02%	―	-24.38%	99.06%
CS	57 Neutral	$4.64B	40.33	2.90%	―	20.74%	―
TECK.B	57 Neutral	$23.71B	74.91	1.26%	1.08%	-10.03%	-86.30%
IVN	48 Neutral	$16.43B	51.97	5.25%	―	―	-33.54%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%

Hudbay Minerals Corporate Events

Hudbay Minerals Consolidates Full Ownership of Copper Mountain Mine

Hudbay Minerals has acquired Mitsubishi Materials Corporation’s 25% interest in the Copper Mountain Mine, consolidating 100% ownership of the asset. This strategic move increases Hudbay’s exposure to a high-quality copper asset in Canada and is expected to significantly boost its copper production by 2027. The transaction, valued at up to $44.25 million, is structured with low upfront costs and deferred payments, enhancing Hudbay’s net asset value per share. The acquisition simplifies the ownership structure and strengthens Hudbay’s position in the North American copper market, with plans to further invest in the optimization and expansion of the mine.

Hudbay Minerals Announces Positive Production Outlook and Exploration Results

Hudbay Minerals has released its annual mineral reserve and resource update, along with a three-year production outlook. The company expects stable copper production, averaging 144,000 tonnes annually, with a significant increase projected for 2027 due to optimization efforts at Copper Mountain. Gold production is also expected to remain strong, with contributions from high-grade zones in Peru. Hudbay’s exploration efforts in Snow Lake and Peru aim to extend mine life and increase production, while feasibility studies for the Copper World project in Arizona are underway. The company’s strategic moves and robust asset base are set to enhance its production profile and stakeholder value.

Hudbay Minerals Reports Record 2024 Financials and Outlines Ambitious Growth Plans

Hudbay Minerals reported record financial results for 2024, driven by significant achievements in production and cost management. The company surpassed its production guidance for gold and achieved industry-leading cost performance, resulting in a substantial reduction in net debt and positioning it favorably for future investments. The company’s strategic focus on growth projects, such as the Copper World project in Arizona, is expected to significantly boost copper production by over 50%, enhancing its market positioning and providing greater value to stakeholders.