Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $6.41B
• Dividend Yield: 0.12%
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 2.10
• Revenue Growth: 11.90%
• EPS Growth: 221.39%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Copper
• EPS (TTM): 0.26
• Shares Outstanding: 395,002,080
• 10 Day Avg. Volume: 2,148,099
• 30 Day Avg. Volume: 1,884,060
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 8.77
• Enterprise Value/Ebitda: 6.23
• 1Y Price Target: $17.45
• Price Target Upside: 5.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 79 Outperform
• Price Target: C$17.00 ▲(3.16% Upside)

Hudbay Minerals demonstrates strong financial performance and technical indicators, supported by positive earnings call sentiment. The strategic joint venture with Mitsubishi and effective cost management further enhance its position. While the valuation is reasonable, the high beta suggests potential volatility, which investors should consider.

Positive Factors

Copper Production Growth

Hudbay offers investors steady copper and gold production at attractive costs, with the added catalyst of upcoming copper production growth in the U.S.

Joint Venture Partnership

Mitsubishi is viewed as an excellent partner, positioning HBM to advance the Copper World project successfully.

Production Outlook

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

Negative Factors

Capital Expenditure Risk

There is modest upside risk to capex as all projects face potential increases.

Copper Volume Guidance

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 that operates in the mining and mineral exploration sectors, primarily focused on copper, zinc, gold, and silver production. The company has mining operations in North and South America, particularly in Manitoba, Canada, and Peru. Hudbay's core products include copper concentrate, zinc concentrate, and precious metals, which are essential materials for various industrial applications and technologies.

How the Company Makes Money

Hudbay Minerals generates revenue primarily through the sale of its mined metals, including copper, zinc, and precious metals. The company operates several mines and processing facilities, where it extracts and processes these minerals. Key revenue streams include the sale of copper and zinc concentrates, which are sold to smelters and other industrial customers. Additionally, Hudbay benefits from its strategic partnerships and relationships with customers in the metals industry, which help secure long-term contracts and stable pricing. The company's financial performance is also influenced by global commodity prices, production levels, and operational efficiency. Other factors, such as exploration success and the discovery of new mineral resources, can contribute to its future earnings.

Hudbay Minerals Financial Statement Overview

Summary

Hudbay Minerals exhibits a strong financial position with consistent revenue growth, solid profitability, and effective cash flow management. The company has managed to improve its margins and leverage, positioning itself well in the copper industry. Continued focus on operational efficiency and debt management will be essential to sustain this positive momentum.

Income Statement

Hudbay Minerals has shown strong revenue growth with a 5.3% increase in TTM, supported by improved margins. The gross profit margin stands at 30.4%, and the net profit margin at 7.4%, indicating solid profitability. The EBIT and EBITDA margins of 21.4% and 42.3% respectively reflect efficient operations. However, the company should continue to focus on maintaining these margins amidst potential market fluctuations.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.45, showing moderate leverage. The return on equity is 10.9%, which is a positive indicator of profitability. The equity ratio is healthy, suggesting a strong capital structure. Continued focus on managing debt levels will be crucial to sustaining financial health.

Cash Flow

Hudbay Minerals has demonstrated robust cash flow performance with a 32.5% growth in free cash flow. The operating cash flow to net income ratio of 1.36 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.39 suggests effective cash management. Maintaining this trajectory will be key to supporting future investments and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	2.02B	1.69B	1.46B	1.50B	1.09B
Gross Profit	732.02M	553.80M	784.22M	276.89M	131.02M	39.00M
EBITDA	1.03B	780.90M	651.30M	502.54M	231.76M	267.23M
Net Income	289.02M	76.70M	66.37M	70.38M	-244.36M	-144.58M
Balance Sheet
Total Assets	5.63B	5.49B	5.31B	4.33B	4.62B	4.67B
Cash, Cash Equivalents and Short-Term Investments	625.50M	581.80M	250.52M	225.66M	270.99M	439.13M
Total Debt	1.14B	1.18B	1.38B	1.25B	1.26B	1.20B
Total Liabilities	2.77B	2.84B	3.11B	2.75B	3.14B	2.97B
Stockholders Equity	2.86B	2.55B	2.10B	1.57B	1.48B	1.70B
Cash Flow
Free Cash Flow	360.21M	317.30M	195.75M	178.84M	6.38M	-121.70M
Operating Cash Flow	772.74M	666.20M	476.85M	487.80M	383.82M	239.48M
Investing Cash Flow	-379.70M	-382.90M	-271.78M	-337.67M	-375.00M	-359.02M
Financing Cash Flow	-253.26M	10.20M	-182.39M	-196.30M	-175.90M	162.09M

Hudbay Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HBM, the sentiment is Positive. The current price of 16.48 is above the 20-day moving average (MA) of 14.76, above the 50-day MA of 14.26, and above the 200-day MA of 12.32, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 88.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HBM.

Hudbay Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	79 Outperform	$6.41B	15.85	10.81%	0.12%	11.90%	221.39%
Sector *	61 Neutral	$10.32B	6.25	0.71%	2.93%	3.36%	-36.41%
TGB	―	$1.01B	10.75	-5.19%	―	―	―
LUNMF	―	$9.89B	24.68	2.61%	1.86%	―	―
CSCCF	―	$5.44B	72.00	2.51%	―	―	―
ERO	―	$1.46B	10.18	19.31%	―	―	―
FQVLF	―	$14.60B	72.32	1.79%	―	―	―

Hudbay Minerals Corporate Events

Hudbay Minerals Reports Strong Q2 2025 Results and Strategic Joint Venture

Hudbay Minerals reported strong financial results for the second quarter of 2025, driven by significant free cash flow and efficient cost management. The company achieved revenue of $536.4 million and adjusted EBITDA of $245.2 million, with consolidated copper and gold production reaffirming full-year guidance. The announcement of a joint venture with Mitsubishi for the Copper World project enhances Hudbay’s financial strength and reduces funding requirements, positioning the company favorably for future growth and value creation.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.

Hudbay Secures $600 Million Investment from Mitsubishi for Copper World Project

Hudbay Minerals has announced a strategic partnership with Mitsubishi Corporation, which will acquire a 30% interest in Hudbay’s Copper World project in Arizona for $600 million. This partnership is expected to facilitate a $1.5 billion investment in the U.S. critical minerals supply chain, aiming to produce 85,000 tonnes of copper annually for 20 years. The project is anticipated to create over 1,000 jobs during construction and up to 3,000 indirect jobs once operational. The investment from Mitsubishi, along with an enhanced precious metals stream agreement with Wheaton, significantly de-risks the project and positions Hudbay to advance towards a sanction decision in 2026.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.

Hudbay Minerals Receives Approval for Share Repurchase Program

Hudbay Minerals Inc. announced that it has received approval from the Toronto Stock Exchange to initiate a normal course issuer bid (NCIB) for its common shares, allowing the company to repurchase up to 5% of its outstanding shares over a 12-month period. This move is driven by Hudbay’s belief that its current market price may not fully reflect the company’s underlying value and future prospects, and the repurchase is seen as a strategic use of capital that benefits shareholders.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.