Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: C$5.06B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 2.07
• Revenue Growth: 10.69%
• EPS Growth: 79.56%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Copper
• EPS (TTM): 0.33
• Shares Outstanding: 395,002,080
• 10 Day Avg. Volume: 1,199,267
• 30 Day Avg. Volume: 1,377,042
• PEG Ratio: -0.34
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.55
• 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$14.83
• Price Target Upside: 15.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: C$13.50 ▲(5.30%Upside)

Hudbay Minerals' strong financial performance and positive earnings call are the most significant factors contributing to the score. Technical analysis shows bullish momentum, though caution is advised due to potential overbought conditions. The high P/E ratio and low dividend yield suggest valuation concerns, while positive corporate events indicate strategic growth.

Positive Factors

Asset Development

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

Operational Efficiency

HBM is working to push throughput another 10% to offset the impact and maximize Constancia production.

Permitting Success

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.

Negative Factors

Growth Perception

The de-risking of Copper World is seen as key to undoing the perception of a lack of growth avenues for HudBay Minerals, potentially driving a re-rating of the company's stock.

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 through the extraction, production, and sale of base and precious metals. The company's key revenue streams include the sale of copper concentrate, which is derived from its mining operations in regions such as Manitoba, Canada, and Peru. Additionally, the company earns income from the sale of zinc and precious metals, including gold and silver, which are by-products of its primary mining activities. Hudbay's revenue is significantly influenced by global commodity prices, which impact the value of its metal sales. The company also engages in strategic partnerships and joint ventures to enhance its mining capabilities and expand its market presence, further contributing to its earnings.

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: Positive
• Last Price: 12.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 12.82 is above the 20-day moving average (MA) of 11.88, above the 50-day MA of 10.85, and above the 200-day MA of 11.60, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 69.67 is Neutral, neither overbought nor oversold. The STOCH value of 82.84 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
LUN	75 Outperform	$11.55B	25.63	2.66%	2.52%	-8.36%	-200.42%
HBM	71 Outperform	C$5.06B	23.75	6.50%	0.15%	10.69%	79.56%
FM	67 Neutral	C$17.54B	93.99	1.22%	―	-13.79%	―
ERO	64 Neutral	$2.08B	76.63	2.54%	―	16.82%	-67.73%
CS	64 Neutral	$5.76B	52.51	2.71%	―	37.30%	―
TKO	61 Neutral	$1.04B	11.15	-12.40%	―	7.36%	-159.52%
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%

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.

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.