NEW YORK ( TheStreet) -- HudBay Minerals (NYSE: HBM) has been upgraded by TheStreet Ratings from sell to hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. Highlights from the ratings report include:
- The revenue growth significantly trails the industry average of 69.3%. Since the same quarter one year prior, revenues rose by 30.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in 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 4.95, which clearly demonstrates the ability to cover short-term cash needs.
- 38.80% is the gross profit margin for HUDBAY MINERALS INC which we consider to be strong. Regardless of HBM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HBM's net profit margin of -18.60% significantly underperformed when compared to the industry average.
- HUDBAY MINERALS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, HUDBAY MINERALS INC reported lower earnings of $0.48 versus $0.73 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 438.8% when compared to the same quarter one year ago, falling from $11.66 million to -$39.51 million.