Rating Change #5
HudBay Minerals Inc (HBM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 39.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HBM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.81, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 45.9% when compared to the same quarter one year prior, rising from $24.49 million to $35.73 million.
- Net operating cash flow has increased to $97.10 million or 49.70% when compared to the same quarter last year. In addition, HUDBAY MINERALS INC has also vastly surpassed the industry average cash flow growth rate of -52.16%.
- HUDBAY MINERALS INC has improved earnings per share by 31.3% in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, HUDBAY MINERALS INC increased its bottom line by earning $0.49 versus $0.48 in the prior year.
HudBay Minerals Inc. engages in the discovery, production, and marketing of copper concentrates containing copper, gold, and silver, and zinc metal and zinc oxide in North, Central, and South America. The company has a P/E ratio of 26.1, above the S&P 500 P/E ratio of 17.7. HudBay has a market cap of $2.04 billion and is part of the basic materials sector and metals & mining industry. Shares are up 16.2% year to date as of the close of trading on Tuesday.You can view the full HudBay Ratings Report or get investment ideas from our investment research center.
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