Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: 0.16%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 2.14
• Revenue Growth: 10.69%
• EPS Growth: 79.56%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Copper
• EPS (TTM): 0.33
• Shares Outstanding: 395,002,080
• 10 Day Avg. Volume: 1,819,239
• 30 Day Avg. Volume: 1,789,728
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 9.60
• Enterprise Value/Ebitda: 6.78
• 1Y Price Target: $16.54
• Price Target Upside: 28.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: C$13.50 ▲(4.73% Upside)

Hudbay Minerals' overall stock score reflects a robust financial foundation with solid cash flow and balance sheet metrics. While technical indicators suggest potential short-term weakness, the company's strategic initiatives and positive earnings call sentiment enhance its long-term growth outlook. The valuation appears slightly high, but the share repurchase program adds a positive influence.

Positive Factors

Asset Management

Copper World is set to become HBM’s marquee asset, producing an average of 92ktpa Cu in its first 10 years.

Earnings

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

Financial Performance

Lalor has been producing significant cash flows with high grade gold in Canada and a very low operating cost.

Negative Factors

Production 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., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; silver/gold doré; molybdenum concentrates; and zinc metals. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States. HudBay Minerals Inc. was founded in 1927 and is headquartered in Toronto, Canada.

How the Company Makes Money

Hudbay Minerals generates revenue primarily through the extraction, production, and sale of base and precious metals, including copper, zinc, gold, and silver. The company sells its metal concentrates to various smelters and metal traders worldwide. Copper is a significant revenue driver, with Hudbay's operations in Peru and Canada contributing to its output. Additionally, Hudbay benefits from by-product credits, which are revenues from secondary metals like gold and silver that are extracted alongside primary metals. The company's earnings are influenced by market prices for metals, production volumes, and operational efficiency. Strategic partnerships and long-term contracts with smelters and trading companies also play a crucial role in stabilizing and enhancing revenue streams.

Hudbay Minerals Financial Statement Overview

Summary

Hudbay Minerals shows solid financial performance with strong revenue growth and operational efficiency. The balance sheet is robust with reduced leverage, and cash flow generation is healthy. However, net profit margins are relatively low, suggesting room for profitability improvements.

Income Statement

Hudbay Minerals shows a positive revenue growth trend, with a 19.60% increase from 2023 to 2024. The gross profit margin stands at 27.40%, indicating effective cost management. The net profit margin improved to 3.79% in 2024, reflecting enhanced bottom-line performance. The company also maintains a strong EBITDA margin of 38.62%, showcasing operational efficiency. However, net profit margins remain relatively low, highlighting room for profitability improvements.

Balance Sheet

The balance sheet is robust with a healthy equity ratio of 46.52%, indicating a solid capital structure. The debt-to-equity ratio decreased to 0.46, pointing to reduced leverage and financial risk. Return on equity improved to 3%, reflecting better returns to shareholders. Despite these strengths, the overall leverage is still moderate, suggesting a need for cautious debt management.

Cash Flow

The company exhibits strong cash flow generation with a 62.06% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is a strong 8.69, highlighting robust cash-generating ability relative to profits. The free cash flow to net income ratio is 4.14, indicating effective cash utilization. These metrics suggest healthy liquidity and a solid ability to fund operations and investments.

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

Hudbay Minerals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HBM, the sentiment is Neutral. The current price of 12.89 is below the 20-day moving average (MA) of 13.51, below the 50-day MA of 13.53, and above the 200-day MA of 12.13, indicating a neutral trend. The MACD of -0.27 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:HBM.

Hudbay Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	65 Neutral	$4.99B	22.93	6.50%	0.16%	10.69%	79.56%
Sector *	61 Neutral	$9.72B	6.71	-0.14%	3.11%	2.50%	-46.76%
TGB	―	$958.24M	10.75	-5.19%	―	―	―
LUNMF	―	$8.82B	24.68	2.61%	2.07%	―	―
CSCCF	―	$4.73B	63.74	2.51%	―	―	―
ERO	―	$1.40B	9.99	19.31%	―	―	―
FQVLF	―	$13.93B	69.35	1.79%	―	―	―

Hudbay Minerals Corporate Events

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.

Hudbay Minerals Reports Strong Q1 2025 Results with Record Cost Performance

Hudbay Minerals reported strong financial results for the first quarter of 2025, driven by robust gold production and stable copper output. The company achieved record low cash costs and high adjusted EBITDA, reaffirming its production and cost guidance for the year. Significant progress was made in advancing growth strategies, including consolidating ownership at Copper Mountain and securing full permits at Copper World, enhancing long-term copper production. These developments position Hudbay favorably in the industry, promising substantial value for stakeholders.