HBMHudbay Minerals Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HBM?
Hudbay Minerals Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 41%
Operating margin · Copper median 38% · fiscal year to FY2025
- Cash conversion
- 1.25×
Cash conversion · 2.11× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −3.4% |
| FY2021 | 1.2% |
| FY2022 | 15% |
| FY2023 | 18% |
| FY2024 | 20% |
| FY2025 | 41% |
Details›
- Gross marginfiscal year to FY2025
- 34%
- Operating marginfiscal year to FY2025
- 41%
- Net marginfiscal year to FY2025
- 26%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $2.21B
- Free cash flow, trailing twelve months
- $241M
- Net income, trailing twelve months
- $564M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Basic Materials
Ranks #77 of 179 by RyuScore