Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $10.18B
• Dividend Yield: 0.08%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 2.37
• 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: 1,530,038
• 30 Day Avg. Volume: 1,411,105
• 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: 0.89
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 13.78
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $27.47
• Price Target Upside: 5.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.16
• Revenue Forecast (FY): $3.05B

• Rating: 76 Outperform
• Price Target: C$27.00 ▲(4.01% Upside)

Hudbay Minerals' overall stock score is driven by strong technical momentum and a solid earnings call performance, highlighting strategic partnerships and cost improvements. Financial performance is stable but faces challenges with declining revenue and cash flow. Valuation is fair with a high dividend yield, providing a balanced investment outlook.

Positive Factors

Strategic Partnership

The partnership with Mitsubishi enhances financial strength and reduces future equity contributions, supporting long-term growth in copper production.

Improved Cost Guidance

Lower cost guidance reflects strong operational efficiency, which can sustain profitability and competitive advantage in the long term.

Debt Reduction

Reducing debt enhances financial flexibility, lowers interest expenses, and strengthens the balance sheet, supporting future investments.

Negative Factors

Operational Interruptions

Operational disruptions can impact production levels and revenue stability, posing risks to meeting production targets and financial performance.

Deferred Copper Shipment

Deferred shipments can lead to cash flow timing issues and impact quarterly financial results, affecting short-term liquidity and operational planning.

Production Challenges

Production challenges can hinder output and efficiency, potentially affecting long-term operational reliability and cost management.

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: 25.96
• 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 25.96 is above the 20-day moving average (MA) of 23.47, above the 50-day MA of 22.95, and above the 200-day MA of 15.84, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 69.18 is Neutral, neither overbought nor oversold. The STOCH value of 83.21 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	C$3.62B	18.52	17.26%	―	29.97%	658.38%
HBM	76 Outperform	$10.18B	15.81	16.43%	0.08%	5.40%	413.48%
CS	70 Neutral	C$10.10B	23.77	9.83%	―	44.69%	1216.12%
FM	68 Neutral	$27.75B	439.43	0.41%	―	8.17%	―
LUN	67 Neutral	$23.29B	564.52	3.33%	0.72%	-19.68%	-90.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKO	58 Neutral	$2.70B	-41.27	-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.

Hudbay Minerals Resumes Operations at Constancia Mine in Peru

Hudbay Minerals has resumed operations at its Constancia mine in Peru after a temporary shutdown caused by local protests and blockades. The company prioritized safety and used the downtime for maintenance, and now expects to meet its 2025 production and cost guidance. Despite earlier disruptions affecting transportation and sales, Hudbay has normalized its concentrate inventory levels and continues to engage with local communities for sustainable operations.

Hudbay Minerals Temporarily Shuts Down Constancia Mine Amid Peru Unrest

Hudbay Minerals Inc. has announced that its Constancia mine in Peru has been affected by local protests and illegal blockades due to ongoing social unrest in the country. As a safety precaution, the company has temporarily shut down the Constancia mill and demobilized non-essential personnel. Hudbay is working with authorities to resolve the situation and expects that these disruptions will not affect its 2025 production and cost guidance. The company emphasizes its commitment to maintaining strong relationships with local communities and ensuring sustainable operations.