Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: C$12.69B
• Dividend Yield: 0.07%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 2.39
• Revenue Growth: 5.40%
• EPS Growth: 413.48%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.04
• Shares Outstanding: 396,148,650
• 10 Day Avg. Volume: 1,150,238
• 30 Day Avg. Volume: 1,258,634
• PEG Ratio: -8.51
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 9.79
• 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$29.71
• Price Target Upside: -7.27% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.06
• Revenue Forecast (FY): C$3.68B

• Rating: 70 Outperform
• Price Target: C$35.00 ▲(9.24% Upside)

The score is driven primarily by strong profitability and a solid balance sheet, supported by constructive earnings-call guidance (better costs, lower capex, debt reduction, and the Mitsubishi JV). The main offsets are negative revenue and free-cash-flow growth and technically stretched momentum signals that increase near-term pullback risk.

Positive Factors

Strategic joint venture with Mitsubishi

The Mitsubishi JV materially reduces Hudbay's required equity contributions and shares project risk, accelerating Copper World development. This structural partnership strengthens financing optionality, lowers dilution risk, and improves long‑term copper growth visibility for 2–6+ months.

Robust operating margins

High and stable margins indicate durable cost competitiveness across Hudbay's diversified metal mix. Strong EBITDA and gross margins provide buffer against commodity volatility, sustain internal funding for projects and dividends, and support reinvestment into higher‑return growth initiatives.

Improving leverage and liquidity

Substantive debt repayments and a low net debt/EBITDA ratio materially strengthen the balance sheet, lowering refinancing and interest risks. Improved leverage plus announced liquidity backing enhances flexibility to fund growth projects and weather commodity cycles without immediate external equity.

Negative Factors

Declining revenue trend

A persistent drop in top‑line undermines scale economics and can erode margins over time if not reversed. Continued revenue contraction pressures cash generation and limits capacity to self‑fund growth or absorb higher sustaining costs, challenging medium‑term operational expansion.

Negative free cash flow growth

Declining free cash flow growth reduces internal funding for sustaining and growth capex, increasing reliance on external capital or JV funding. Over time this can constrain project timelines, dividend sustainability, and limit the company's ability to opportunistically invest during commodity upcycles.

Operational disruptions and production risk

Recurring operational incidents and supply chain interruptions create volatility in output and deferred revenue. These structural operational risks can increase unit costs, delay project timelines, and weaken predictability of production and cash flows over the medium term, affecting strategic planning.

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 sale of its metal products, including copper concentrate, zinc concentrate, and precious metals. The company operates several mining projects, with key revenue streams arising from the extraction and processing of these minerals. Hudbay's revenue model is bolstered by contracts with major metal trading companies and industrial consumers, which provide a steady demand for its products. Additionally, fluctuations in global metal prices significantly impact earnings, as they are influenced by market conditions, supply and demand dynamics, and macroeconomic factors. Strategic partnerships and joint ventures with other mining companies also contribute to its revenue by enhancing operational efficiency and expanding resource access.

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	2.06B	2.02B	1.69B	1.46B	1.50B	1.09B
Gross Profit	657.53M	553.80M	784.22M	276.89M	131.02M	39.00M
EBITDA	1.26B	780.90M	651.30M	502.54M	231.76M	267.23M
Net Income	461.66M	76.70M	66.37M	70.38M	-244.36M	-144.58M
Balance Sheet
Total Assets	5.92B	5.49B	5.31B	4.33B	4.62B	4.67B
Cash, Cash Equivalents and Short-Term Investments	611.10M	581.80M	250.52M	225.66M	270.99M	439.13M
Total Debt	1.11B	1.20B	1.38B	1.25B	1.26B	1.20B
Total Liabilities	2.84B	2.84B	3.11B	2.75B	3.14B	2.97B
Stockholders Equity	3.08B	2.55B	2.10B	1.57B	1.48B	1.70B
Cash Flow
Free Cash Flow	315.46M	317.30M	195.75M	178.84M	6.38M	-121.70M
Operating Cash Flow	740.06M	666.20M	476.85M	487.80M	383.82M	239.48M
Investing Cash Flow	-383.74M	-382.90M	-271.78M	-337.67M	-375.00M	-359.02M
Financing Cash Flow	-187.28M	10.20M	-182.39M	-196.30M	-175.90M	162.09M

Hudbay Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.04
• 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 32.04 is above the 20-day moving average (MA) of 28.14, above the 50-day MA of 25.06, and above the 200-day MA of 17.48, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 83.11 is Negative, neither overbought nor oversold. The STOCH value of 90.27 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
ERO	76 Outperform	$4.42B	22.29	17.26%	―	29.97%	658.38%
CS	73 Outperform	C$10.55B	24.98	9.83%	―	44.69%	1216.12%
FM	73 Outperform	C$34.49B	534.37	0.41%	―	8.17%	―
LUN	72 Outperform	C$29.56B	717.84	3.33%	0.68%	-19.68%	-90.05%
HBM	70 Outperform	C$12.69B	19.70	16.43%	0.07%	5.40%	413.48%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKO	54 Neutral	C$3.65B	-54.90	-10.53%	―	1.17%	-169.37%

Hudbay Minerals Corporate Events

Hudbay Minerals Shows Resilience Amid Operational Challenges in Q3 2025

Hudbay Minerals Inc. demonstrated operational resilience in the third quarter of 2025, despite facing challenges such as mandatory wildfire evacuations in Manitoba and temporary operational interruptions in Peru. The company achieved revenue of $346.8 million and adjusted EBITDA of $142.6 million, with consolidated copper and gold production showing strong performance. Hudbay secured a strategic partnership with Mitsubishi, enhancing its financial strength and reducing capital contributions for the Copper World development. The company improved its cost guidance for 2025, maintaining a focus on cost control and strategic growth initiatives.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$24.50 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.