Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $5.32B
• Dividend Yield: 0.15%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 2.08
• Revenue Growth: 10.69%
• EPS Growth: 79.56%
• Country: CA
• Employees: 2,233
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Copper
• EPS (TTM): 0.33
• Shares Outstanding: 395,002,080
• 10 Day Avg. Volume: 1,150,610
• 30 Day Avg. Volume: 1,300,705
• PEG Ratio: -1.22
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.92
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 7.99
• Enterprise Value/Ebitda: 1.45
• 1Y Price Target: $15.25
• Price Target Upside: 13.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: C$16.50 ▲(22.59%Upside)

Hudbay Minerals demonstrates strong technical momentum and positive earnings call sentiment, highlighting operational and strategic strengths. While financial performance is solid, valuation remains a concern due to a high P/E ratio. Overall, the stock is well-positioned for growth, supported by strategic initiatives and a robust industry standing.

Positive Factors

Copper Production Growth

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

Permitting Progress

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.

Value Accretion

CM ownership consolidation is value accretive to HBM.

Negative Factors

Guidance Reduction

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 demonstrates solid financial performance with consistent revenue growth and improved operational efficiency. The balance sheet is strong with reduced leverage, and cash flow metrics highlight robust liquidity. However, profitability margins have room for improvement.

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: Positive
• Last Price: 13.46
• 50DMA: Positive
• 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 Positive. The current price of 13.46 is above the 20-day moving average (MA) of 13.08, above the 50-day MA of 11.76, and above the 200-day MA of 11.81, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 65.80 is Neutral, neither overbought nor oversold. The STOCH value of 71.71 is Neutral, 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	76 Outperform	$5.32B	24.31	6.50%	0.15%	10.69%	79.56%
Sector *	62 Neutral	$9.84B	9.25	-0.43%	3.02%	2.17%	-35.02%
TGB		$926.19M	10.75	-12.40%	―	―	―
LUNMF		$8.69B	24.68	2.66%	2.39%	―	―
CSCCF		$4.40B	58.39	2.71%	―	―	―
ERO		$1.64B	87.35	2.54%	―	―	―
FQVLF		$13.67B	98.67	1.22%	―	―	―

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.