Hudbay Minerals (HBM) AI Stock Analysis

• Market Cap: $8.31B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 2.28
• 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: 1,619,702
• 30 Day Avg. Volume: 1,916,110
• 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: 1.09
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 12.37
• Enterprise Value/Ebitda: 8.79
• 1Y Price Target: $25.69
• Price Target Upside: 22.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.15
• Revenue Forecast (FY): $3.12B

• Rating: 74 Outperform
• Price Target: C$23.50 ▲(12.01% Upside)

Hudbay Minerals' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The strategic partnership with Mitsubishi and improved cost guidance provide a solid outlook, despite some operational challenges. The technical analysis indicates a mixed short-term trend but a positive long-term outlook, while the valuation remains attractive with a high dividend yield.

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 demonstrates strong financial performance with solid revenue growth, profitability, and cash flow management. The company has improved its margins and leverage, positioning itself well in the copper industry. Continued focus on operational efficiency and debt management is essential.

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	2.20B	2.02B	1.69B	1.46B	1.50B	1.09B
Gross Profit	732.02M	553.80M	784.22M	276.89M	131.02M	39.00M
EBITDA	1.03B	780.90M	651.30M	502.54M	231.76M	267.23M
Net Income	289.02M	76.70M	66.37M	70.38M	-244.36M	-144.58M
Balance Sheet
Total Assets	5.63B	5.49B	5.31B	4.33B	4.62B	4.67B
Cash, Cash Equivalents and Short-Term Investments	625.50M	581.80M	250.52M	225.66M	270.99M	439.13M
Total Debt	1.14B	1.20B	1.38B	1.25B	1.26B	1.20B
Total Liabilities	2.77B	2.84B	3.11B	2.75B	3.14B	2.97B
Stockholders Equity	2.86B	2.55B	2.10B	1.57B	1.48B	1.70B
Cash Flow
Free Cash Flow	360.21M	317.30M	195.75M	178.84M	6.38M	-121.70M
Operating Cash Flow	772.74M	666.20M	476.85M	487.80M	383.82M	239.48M
Investing Cash Flow	-379.70M	-382.90M	-271.78M	-337.67M	-375.00M	-359.02M
Financing Cash Flow	-253.26M	10.20M	-182.39M	-196.30M	-175.90M	162.09M

Hudbay Minerals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 20.98 is below the 20-day moving average (MA) of 22.14, below the 50-day MA of 21.59, and above the 200-day MA of 14.85, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 14.76 is Positive, 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	74 Outperform	$8.31B	12.90	16.43%	0.10%	5.40%	413.48%
ERO	69 Neutral	$3.16B	16.27	17.26%	―	29.97%	658.38%
LUN	67 Neutral	$20.97B	507.88	3.33%	1.07%	-19.68%	-90.05%
CS	67 Neutral	$8.38B	19.49	9.83%	―	44.69%	1216.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FM	61 Neutral	$23.04B	358.24	0.41%	―	8.17%	―
TKO	56 Neutral	$2.17B	―	-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.

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.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.

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.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$20.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.

Hudbay Minerals’ Earnings Call Highlights Resilience and Growth

Hudbay Minerals’ recent earnings call conveyed a largely positive sentiment, underscored by strong financial performance and strategic initiatives. Despite facing challenges such as wildfires and protests, the company demonstrated resilience, maintaining its production guidance and achieving significant milestones.

Hudbay Minerals Secures Mitsubishi Investment for Copper World Project

On August 12, 2025, Hudbay Minerals Inc. entered into a definitive subscription agreement with Mitsubishi Corporation, under which Mitsubishi will acquire a 30% interest in Hudbay’s Copper World project in Arizona. This joint venture involves a US$600 million investment by Mitsubishi, with US$420 million payable at closing and US$180 million within 18 months. The transaction is expected to close in late 2025 or early 2026, pending regulatory approvals, and will see Mitsubishi contributing to ongoing project costs and development. This agreement signifies a strategic partnership that could enhance Hudbay’s project development capabilities and strengthen its position in the mining industry.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$18.50 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 Financial Performance for Q2 2025

On August 13, 2025, Hudbay Minerals Inc. released its unaudited condensed consolidated interim financial statements and management’s discussion and analysis for the period ending June 30, 2025. The company reported a significant increase in revenue and net income compared to the previous year, with revenue reaching $536.4 million for the quarter and net income of $114.7 million. This financial performance highlights Hudbay’s improved operational efficiency and market positioning, potentially benefiting its stakeholders and enhancing its competitive stance in the mining industry.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$16.00 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 Q2 2025 Results

Hudbay Minerals Inc., a Canadian mining company, operates in the copper and gold sectors, with a diversified portfolio of operations across North and South America. Known for its strong focus on cost control and strategic partnerships, Hudbay continues to enhance its position in the mining industry.

Hudbay Minerals Reports Strong Q2 2025 Results and Strategic Joint Venture

Hudbay Minerals reported strong financial results for the second quarter of 2025, driven by significant free cash flow and efficient cost management. The company achieved revenue of $536.4 million and adjusted EBITDA of $245.2 million, with consolidated copper and gold production reaffirming full-year guidance. The announcement of a joint venture with Mitsubishi for the Copper World project enhances Hudbay’s financial strength and reduces funding requirements, positioning the company favorably for future growth and value creation.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.

Hudbay Secures $600 Million Investment from Mitsubishi for Copper World Project

Hudbay Minerals has announced a strategic partnership with Mitsubishi Corporation, which will acquire a 30% interest in Hudbay’s Copper World project in Arizona for $600 million. This partnership is expected to facilitate a $1.5 billion investment in the U.S. critical minerals supply chain, aiming to produce 85,000 tonnes of copper annually for 20 years. The project is anticipated to create over 1,000 jobs during construction and up to 3,000 indirect jobs once operational. The investment from Mitsubishi, along with an enhanced precious metals stream agreement with Wheaton, significantly de-risks the project and positions Hudbay to advance towards a sanction decision in 2026.

The most recent analyst rating on (TSE:HBM) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Hudbay Minerals stock, see the TSE:HBM Stock Forecast page.