NEW YORK (TheStreet) -- Shares of Hecla Mining (HL - Get Report) are slumping, down 4.38% to $2.84 in midday trading Monday, adding to its losses from Friday's session as silver prices continue to trade in the red.
Silver for May delivery is lower by 0.14% to $15.78 an ounce as of 11:31 a.m. ET today on the COMEX. Similarly, spot silver is down 0.63% to $15.76 an ounce as of 11:40 a.m. ET.
On Friday, silver prices were falling on a surging dollar, as Interactive Brokers chief market analyst Andrew Wilkinson said the strength in the dollar is "hampering any recovery in commodities."
Hecla Mining is a low-cost U.S. silver producer with operating mines in Alaska, Idaho and Quebec, Canada.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HL's revenue growth has slightly outpaced the industry average of 2.8%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 43.51% is the gross profit margin for HECLA MINING CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.85% is above that of the industry average.
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.69 is very high and demonstrates very strong liquidity.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- HL has underperformed the S&P 500 Index, declining 5.70% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: HL Ratings Report