NEW YORK (TheStreet) -- Shares of Hecla Mining Co. (HL - Get Report) are higher by 1.10% to $3.22 in mid-afternoon trading on Monday as some mining related stocks get a jolt from the rise in the price of gold.
Gold for April delivery is gaining by 0.22% to $1,187.20 per ounce on the COMEX this afternoon.
The precious metal is in the green today due to concerns relating to Greece's debt issues and a weak dollar.
The greenback is lower by 0.66% this afternoon, according to the Wall Street Journal dollar index.
"Gold is being supported by jitters in European markets due to concerns about the Greek debt crisis, which looks like it may soon come to a head. Greece is running out of cash quickly which is heightening the risk of a 'Grexit' and a return to the 'drachma', or alternatively to Cyprus style bail-ins," Mark O'Byrne a director at GoldCore told MarketWatch.
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:
- The revenue growth came in higher than the industry average of 18.7%. 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 6.29% 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